Article XII, Eminent Domain

12.01 - General.
This Article shall be deemed to be supplemental to and not in derogation of the provisions of N.J.S.A. 46:8B-25.

12.02 - Notice and Participation of Unit Owners.
If any building, improvement or Common Element or any part thereof shall be taken, injured or destroyed by eminent domain, each Unit Owner affected shall be entitled to notice of such taking and to participate through the Association in the proceedings incident thereto.

12.03 - Allocation of Awards.
Any awards made in connection with such proceedings shall be collected by the Association and applied or distributed by it in ccordance with the following and Section 5.02 hereof, unless the award or decree provides to the contrary:

1. Upon acquisition by the condemning authority, unless the decree provides otherwise or the Unit remains habitable, each affected Unit's entire percentage interest and its corresponding liability for payment of Common Expenses shall be automatically reallocated to the remaining Units on the same basis as their respective percentage interests were initially established. The Association shall promptly prepare, execute, and record an amendment to the Master Deed reflecting the reallocations. Any remnant of a Unit which has been rendered uninhabitable remaining after a part of a Unit is taken under this subsection shall thereafter be a Common Element.


2. Upon acquisition by the condemning authority, unless the decree provides otherwise,


1. the percentage interest of each affected Unit which remains habitable and its corresponding liability for payment of Common Expenses shall be reduced in proportion to the reduction in square footage of each such Unit as compared with the aggregate square footage of all Units before the taking, and


2. the portion of percentage interest and Common Expense liability divested from the acquired Unit shall be automatically reallocated to the remaining Units in proportion to their respective percentage interests with the partially acquired Unit(s) participating in the reallocation on the basis of their reduced percentage interest and liabilities.


3. If a part of the Common Elements is acquired by eminent domain, the award must be paid to the Association unless the decree provides that the Association shall divide any portion of the award not used for any restoration or repair of the remaining Common Elements among the Unit Owners affected in proportion to their respective damage suffered and their respective percentage interest in the Common Elements before the taking on an equitable basis.