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28 <br />6557.03/12309 <br />use; or (iii) in the case of landscaping, the landscaping is installed and no one other than the Association <br />has been obligated to maintain the landscaping. <br />Section 4.5 Special Assessments. In addition to the Annual Assessment authorized above, <br />the Association may levy, in any fiscal year, a Special Assessment applicable to that year only, for the <br />purpose of defraying, in whole or in part, the Common Expenses of the Association for such fiscal year <br />(including, but not limited to, unanticipated delinquencies, costs of construction and unexpected repairs, <br />replacement or reconstruction of capital improvements in or on the Common Area including fixtures and <br />personal property related thereto). The aggregate of Special Assessments during any fiscal year shall not <br />exceed five percent (5%) of the budgeted gross expenditures of the Association for that fiscal year <br />without an approval of Owners casting a majority of the votes at a meeting or election of the Association <br />at which a quorum was present and in accordance with Section 4.6 conducted in accordance with <br />Corporations Code Sections 7510 et seq. and 7613, and the Board must comply with Section 5605 of the <br />Civil Code. Any such voting of the Owners regarding assessments shall comply with the applicable <br />procedures in Civil Code Sections 5100-5130. This Section shall not limit Assessment increases <br />necessary for the following emergency situations: (1) an extraordinary expense required by an order of a <br />court; (2) an extraordinary expense necessary to repair or maintain the Development or any part of it for <br />which the Association is responsible where a threat to personal safety in the Development is discovered; <br />(3) an extraordinary expense necessary to repair or maintain the Development or any part thereof for <br />which the Association is responsible that could not have been reasonably foreseen by the Board in <br />preparing and distributing the Budget (prior to the imposition or collection of an Assessment under this <br />subsection (3), the Board shall pass a resolution containing written findings as to the necessity of the <br />extraordinary expense involved and a determination as to why the expense was not or could not have been <br />reasonably foreseen in the budgeting process and such resolution shall be distributed to the Members with <br />the notice of Assessment). <br /> <br />Unless exempt from Federal and State of California income taxes, all proceeds from any Special <br />Assessment shall be segregated and deposited into a special account and shall be used solely for the <br />purpose or purposes for which it was levied, or otherwise shall be handled and used in a manner <br />authorized by law or regulations of the Internal Revenue Service and the California Franchise Tax Board <br />in order to avoid, to the extent possible, its taxation as income to the Association. <br /> <br />Section 4.6 otice and Quorum for Adoption of Annual or Special Assessment. Any <br />action authorized to be taken by the Members under Sections 4.3 and 4.5, shall be taken at a meeting <br />called for that purpose, written notice of which shall be mailed by first class mail, postage prepaid to each <br />Member at the address of each Unit owned by such Member within the Development not less than ten <br />(10) days nor more than ninety (90) days prior to the meeting. For purposes of Sections 4.3 and 4.5 only, <br />quorum means more than fifty percent (50%) of the Owners of the Association. The proposed action may <br />also be taken without a meeting pursuant to the provisions of Corporations Code Section 7513. Any <br />voting of the Owners regarding assessments shall be by secret ballot and shall comply with the applicable <br />procedures in Civil Code Sections 5100-5130. <br /> <br />The Association shall provide notice by first class mail to the Owners of the separate interests of <br />any increase in the Annual or Special Assessments of the Association, not less than thirty (30) nor more <br />than sixty (60) days prior to the increased assessment becoming due. <br /> <br />Section 4.7 Individual Special Assessment. The Association shall have the authority to <br />levy an Individual Special Assessment, pursuant to the procedures contained in the Bylaws, against any <br />Condominium or any Owner in order to obtain reimbursement of certain funds expended by the <br />Association, including, without limitation, any costs incurred or to be incurred by the Association as the <br />result of any act or omission of any Owner or occupant of any Condominium or their family members, <br />7.1.K. - Page 32