DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS
PAGE 28
ARTICLE V (cont.)
5.5. Annual Assessments/Commencement-Collection (cont.).
first-class mail to every Owner subject thereto not less than thirty (30) nor more than sixty (60) days prior to the increased assessment becoming due.
The Board may determine that funds in the Operating Fund at the end of the Fiscal Year be retained and used to reduce the following Fiscal Year's Annual Assessments. Upon dissolution of the association incident to the abandonment or termination of the Property as a Condominium project, any amounts remaining in any of the Maintenance Funds shall be distributed to or for the benefit of the Members in the same proportions as such monies were collected from the Members.
Declarant and any other owner of a Unit which has not been constructed are exempt from . payment of that portion of the Annual Assessment which is for the purpose of defraying expenses and reserves directly attributable to the existence and use of the Unit. This exemption includes, without limitation, expenses and reserves relating to roof replacement, exterior· maintenance, walkway and carport lighting, cable television, refuse disposal, and domestic water supplied to the Unit. Such exemption remains in effect only until the earlier to occur of (a) the recordation of a notice of completion-of the building containing the Unit, (b) the occupation or use of the Unit, or (c) completion of all elements of the Condominium structures that the Association is obligated to maintain.
Notwithstanding any other provisions of this Declaration, until the earlier to occur of (a) the Recordation of a notice of completion of an Improvement on the Association Property, or (b) the placement of such Improvement into use, each Owner (including Declarant) shall be exempt from paying that portion of any Annual Assessment which is for the purpose of defraying expenses and reserves directly attributable to the existence and use of such Improvement.
Each Member shall pay to the Association his Annual Assessment in installments at such frequency and in such amounts as established by the Board. Each installment of Annual Assessments may be paid by the Member to the Association in one check or in separate checks as payments attributable to specified Association· Maintenance- Funds. If any payment of an Annual Assessment installment (a) is less than the amount assessed and (b) does not specify the Association Maintenance Fund or Funds into which it should be deposited, then the amount . received shall be credited in order of priority first to the Operating Fund, until that portion of the Annual Assessment has been satisfied, and second to the Reserve Fund.
5.6. Capital Improvement Assessments.
The Board may levy, in any Fiscal Year, a Capital Improvement Assessment or Reconstruction Assessment applicable to that Fiscal Year only to defray, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital Improvement or other such addition upon the Common Property including- fixtures and personal property related thereto. No Capital Improvement Assessments in any Fiscal Year which, if added to the Capital Improvement Assessments already levied during such Fiscal Year, exceed five percent (5%) of the Association's Budgeted gross expenses for such Fiscal Year, may be levied without the vote or written consent of Members casting a majority of votes at an Increase Election.