6.01 - Covenant to Pay Assessments.
Every Unit Owner, by acceptance of a deed or other conveyance for a Unit, whether or not it shall be so expressed in any such deed or other conveyance, shall be deemed to covenant and agree to pay to the Association such sums, by way of any assessments contemplated herein or in the By-Laws.
6.02 - Liability for Assessments.
No Unit Owner may waive or otherwise avoid liability for any assessments by non-use of the Common Elements. Each assessment and all fines and other charges shall be a continuing lien upon the Unit against which they were made and shall also be the joint and several personal obligation of the Owner of such Unit at the time when the assessment, fine or other charge fell due, and of each subsequent record Owner of such Unit, except as otherwise contemplated by Section 13.10 of this Master Deed or N.J.S.A. 46:8B-21, together with such interest thereon and cost of collection thereof (including reasonable attorneys' fees). Liens for unpaid assessments, fines or other charges may be foreclosed by suit brought in the name of the Association in the same manner as a foreclosure of a mortgage on real property. Suit to recover a money judgment for unpaid assessments, fines or other charges may be maintained without waiving the lien securing the same.
6.03 - Annual Common Expense Assessments.
It shall be an affirmative and perpetual obligation of the Board to fix Annual Common Expense Assessments in an amount at least sufficient to maintain the exterior of the Buildings and to maintain and operate the Common Elements, as contemplated by the Master Deed or By-Laws and as required by the Condominium Act. The amount of monies for Common Expenses of the Association deemed necessary by the Board and the manner of expenditure thereof shall be a matter for the sole discretion of the Board.
6.04 - Notice.
The Board shall cause to be prepared annually, at least thirty (30) days in advance of the due date of the first Annual Common Expense Assessment installment, a list of the Units and the Annual Common Expense Assessments applicable to each, according to the names of the Unit Owners, which list shall be kept in the office of the Association and shall be open to inspection upon request by any Unit Owner. Written notice of the Annual Common Expense Assessments shall be sent by mail or delivered to every Unit Owner, as more particularly described in Article XIV of the By-Laws.
6.05 - Use of Annual Common Expense Assessments.
The Annual Common Expense Assessments levied by the Board shall be used exclusively for promoting the health, safety, pleasure and welfare of the members of the Association, including, but without limitation: street lighting; refuse collection; snow clearing from parking areas, roadways, driveways, sidewalks and walkways; landscaping of General Common Elements, the maintenance and repair of the exterior and roof of each of the Buildings, including but not limited to cleaning and painting of the exterior surfaces and finishes; maintenance, repair and replacement of the Common Elements or any other improvement on the Property; maintenance and repair of all fences; payment of taxes and insurance premiums; all costs and expenses incidental to the operation and administration of the Association and its Property; and such other items as may from time to time be deemed appropriate by the Board. Annual Common Expense Assessments shall not be used for new capital improvements subject to Section 6.11 hereof.
6.06 - Allocation; Obligations of the Developer.
The Common Expenses shall be allocated among all Units within any Building(s) in the Condominium for which an initial Certificate of Occupancy has been issued with respect to any Unit. The Common Expense Assessments for the Units will be based upon the relative square footage of each Unit as compared with the Condominium as a whole, except that owners of the Affordable Housing Units shall only pay one-half the amount that would normally be assessed for a Unit of that size. This adjustment shall be made in the following manner: after the amount of Common Expenses attributable to each Unit has been calculated, the amount of Common Expenses attributable to each Affordable Housing Unit shall be reduced by one-half. The balance of the Common Expenses that would normally appertain to the Affordable Housing Units shall be aggregated and then divided among the non-Affordable Housing Units in proportion to their relative interests in the Common Elements. This amount shall be in addition to the Common Expenses already assessed against those Units. The reduction in Common Expense Assessments shall not affect the ability of the Owners of the Affordable Housing Units to enjoy and use the Common Elements nor shall it affect their relative percentage of interest in the Common Elements.
Until the conveyance of title to the first Unit, the Developer shall be solely responsible for all Common Expenses. Following the first conveyance, the Owners of Units to whom title shall have been conveyed shall be responsible for their proportionate share of all Common Expenses and The Developer shall be responsible for payment of all Common Expenses assessed against Units which have not been initially conveyed to an individual Purchaser and for which an initial Certificate of Occupancy has been issued by the Township of Bernards. No Unit shall be assessed for Common Expenses until such time as an initial Certificate of Occupancy has been issued for that Unit. While the Developer maintains a majority on the Board of Directors, it shall make no additions, alterations, improvements or purchases which would necessitate a Special Common Expense Assessment or a substantial increase in the Annual Common Expense Assessment installments unless required by a governmental agency, title insurance company or Institutional lender or in the event of an emergency.
6.07 - Annual Common Expense Assessment Not Made.
If an Annual Common Expense Assessment is not made as required, an assessment shall be presumed to have been made in the amount of the last prior year's assessment increased by ten (10%) percent and any installments of such annual assessments shall be due upon each installment payment date until a new Annual Common Expense Assessment is made.
6.08 - Due Dates of Annual Common Expense Assessment.
Annual Common Expense Assessments shall be made for a yearly period to be determined by the Board, and shall be payable in advance in monthly installments or in such other installments as may be established by the Board. Upon the conveyance of title to a Unit, the portion of the then current Annual Common Expense Assessment payable by the new Unit Owner shall be an amount which bears the same relationship to the Annual Common Expense Assessment as the remaining number of months in the then current annual assessment period bears to twelve. Such first annual assessment or portion thereof for which a new Unit Owner is liable shall be immediately due upon the closing of title to the Purchaser.
6.09 - Emergency Assessment.
In the event the Annual Common Expense Assessment proves to be insufficient for an immediate need or emergency, the budget and assessment may be amended at any time by the Board, and the Board may impose an Emergency Assessment. The determination of an immediate need or emergency shall be in the sole discretion of the Board.
6.10 - Special Assessments.
In addition to the other assessments herein authorized, in any assessment year, the Board may levy a Special Common Expense Assessment for the purpose of defraying in whole or in part, the cost of any construction or reconstruction, unexpected repair or replacement of an existing capital improvement upon or to the Common Elements for which funds held in reserve are inadequate, including the necessary furniture, fixtures, equipment, and other personal property related thereto, or for any other lawful purpose (excepting new capital improvements subject to Section 6.11 herein). If during any assessment year, a Special Common Expense Assessment exceeds in the aggregate the sum of $25,000.00 it shall receive the assent of two-thirds (2/3) in interest of the affected Unit Owners in good standing. This vote shall be taken at a meeting duly called for this purpose. Written notice of such meeting, stating the purpose of the meeting, shall be sent to all Unit Owners not less than thirty (30) days in advance. The due date(s) of any Special Common Expense Assessment or any installments(s) thereof shall be fixed in the resolution authorizing the Special Common Expense Assessment.
6.11 - Capital Imorovement Assessment.
In addition to the other assessments herein authorized, in any assessment year, the Board may levy a Capital Improvement Assessment for the purpose of acquiring or constructing a capital improvement, provided that the acquisition or construction of any capital improvement, the cost of which exceeds the sum of $25,000.00 shall have been authorized by the assent of two-thirds (2/3) in interest of the affected Unit Owners in good standing. This vote shall be taken at a meeting duly called for this purpose. Written notice of such a meeting, stating the purpose of the meeting, shall be sent to all Unit Owners no less than thirty (30) days in advance. The due date(s) of any Capital Improvement Assessment, or any installment(s) thereof, shall be fixed in the resolution authorizing the Capital Improvement Assessment.
6.12 - Exemption for Capital Improvement Assessment.
Anything to the contrary herein notwithstanding, neither Developer nor any Eligible Mortgage Bolder shall be required to pay any Capital Improvement Assessment. Further, this provision may not be amended without the written consent of Developer and every Eligible Mortgage Holder.
6.13 - Remedial Assessment.
In addition to the other assessments herein authorized, the Board may levy a Remedial Assessment against any individual Unit(s) whenever required or permitted to do so by the provisions of Article VI; herein regarding Unit maintenance performed by the Association. The Board may also provide, by its Rules and Regulations, for ordinary maintenance and minor repairs and replacements to be furnished to Units by Association personnel or representatives and charged as a Remedial Assessment.
6.14 - Assessment for Other Charges.
Any and all fines, late charges, costs of collection (including reasonable attorneys' fees) interest on unpaid assessments, capital contributions, membership fees, escrow deposits or any other sums required to be paid to the Association by a Unit Owner(s) by the provisions of this Master Deed, the By-Laws, the Certificate of Incorporation, the Rules and Regulations of the Association or any duly adopted Resolution of the Board, shall be deemed assessments which each Unit Owner has covenanted and agreed to pay according to the provisions of Section 6.01 herein and for which each Unit Owner is liable according to the provisions of Section 6.02 herein, and shall be collectible by the Association in the same manner as other assessments pursuant to the provisions hereof and N.J.S.A. 46:8B-21.
6.15 - Exemption.
Notwithstanding anything to the contrary herein, in the event the Developer designates a Unit to be conveyed to the Association for use by a residential building superintendent, that Unit shall be exempt from Common Expense Assessments of any type until the Association shall convey title thereto, and the costs of ownership of the Unit, including the proportionate responsibility for Common Expenses attributable to such Unit, shall be borne by the other Unit Owners in their proportionate share. However, the Developer does not intend, at this time, to cause the Association to acquire title to any Unit for so long as the Developer controls the Board of Directors.
6.16 - Certificate of Payment.
Upon the request of any Unit Owner liable for a Common Expense Assessment, or of the Permitted Mortgage Holder for any Unit, the Association shall furnish to such Unit Owner or Permitted Mortgage Bolder, a certificate in writing, signed by an officer of the Association, setting forth whether or not such Common Expense Assessment has been paid. Such certificate shall constitute conclusive evidence of the payment of any assessments therein stated to have been paid.
6.17 - Interest in Common Surplus.
Any common surplus of the Association resulting from the excess of income over expenses shall be allocated among the Members in the same manner as those expenses were assessed. Any common surplus of the Association resulting from the proceeds of any distribution of assets of the Association shall be allocated among the Members of the Association including Developer, according to their percentage interests, subject to an adjustment to reflect an appropriate credit for any initial contribution to working capital, .if applicable, in accordance with generally accepted accounting principles.
