O-2006-1501-H5 scup 06-006 - Laserfiche WebLink

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Board, in its sole good faith discretion, for any of the permitted purposes. The Board and the Directors shall not be liable to any person or entity as a result of any action taken by the Board with respect to the Maintenance Fund, except for willful misconduct or fraud. D. Basis of Maximum of Annual Assessments. Notwithstanding the provisions of Paragraph A of this Article 8 to the contrary, the maximum initial annual Assessment shall be two cents ($0.02) per square foot of land area in the Subject Property. From and after January 1, of the next succeeding calendar year following the imposition of the Assessment, the annual Assessment may be increased as follows: The Developer may determine and certify that the then current annual Assessment is not sufficient to meet reasonable expenses of maintaining and enforcing this Declaration and, the Developer may increase the annual Assessment by an amount which shall not exceed the greater of: (i) 10% or (ii) an amount equal to the yearly rise in the United States Department of Labor, Bureau of Labor Statistics ("BLS"), Consumer Price Index (for All Urban Consumers CPI-U) Houston-Galveston-Brazoria, TX. -All Items (1982-84 = 100) (the "Index") as of Julyof each year from the preceding July. If, however, the Index should be discontinued, such calculation shall be made by use of another reputable Index selected by the Board which is recognized by BLS and is comparable to the Index. Additionally, if the base period of the Index (currently 1982-84 = 100) is hereby modified, the base period used in making the aforesaid calculation shall be appropriately adjusted by the Board to reflect such modification and if the Index is published in such manner that an Index figure is not available each July, then the Index figure published for the most recent month preceding July shall be used. The annual Assessment shall not be increased more than once in any calendar year. However, the right to increase the annual Assessment, as aforesaid, shall be cumulative and in the event the annual Assessment is not increased to the maximum amount allowed for anyone or more years, then the Developer shall thereafter have the right to increase any subsequent annual Assessment to an amount equal to the maximum annual Assessment that would have been chargeable for that year as if the annual Assessment had been increased by the maximum allowable hereunder for each of such prior years. Notwithstanding the foregoing provisions ofthis Paragraph 8.D, in the eventthe Board determines that it is necessary to increase the annual Assessment more than the amount prescribed by the formula, the Board, by majority vote, and the affirmative vote of two-thirds (2J3rds) ofthose Owners who are voting in person or by proxy at a meeting duly called for such purpose, may increase the maximum annual Assessment for the subject calendar year. Once the maximum annual assessment for any calendar year is increased pursuant to the provisions of this grammatical paragraph, the amount to which it has been increased shall be the amount used to determine the maximum annual Assessment for the next calendar year. E. Subordination of Assessment Lien to Mortgages. The liens securing the Assessments provided for herein shall be subject and subordinate to (i) all liens for taxes or assessments levied by the City, County and State Governments or any political subdivision or special district thereof and (ii) the lien of any duly-recorded first and/or second mortgage lien or first and/or second lien deed of trust upon one or more Tracts made in good faith and for purchase money or improvements. The sale or transfer of any Tract shall not affect the assessment lien. However, the sale or transfer of any Tract which is subject to any first or second mortgage lien, pursuant to a foreclosure of such lien or a conveyance in lieu of foreclosure, shall extinguish the lien of such assessments as to payments thereof which become due prior to such sale or transfer. No sale or transfer shall relieve the new Owner of such Tract from liability for any assessment thereafter becoming due according to the terms herein contained or from the lien thereof. F. Exempt Property. Notwithstanding anything to the contrary herein, the following property shall be exempt from the payment of assessments: (a) any areas designated as Common Areas by the Developer and accepted by the Association; and (b) all property dedicated to and accepted by any governmental authority or public utility. H-Final Version of Declaration of Protective Covenants and Easements(620880_ 4).DOC 13