55-446 - Exercise of development rights.
§ 55-446. Exercise of development rights.
A. To exercise any development right reserved under subdivision A 8 of §55-442, the declarant shall prepare, execute and record an amendment to thedeclaration as specified in § 55-453. The amendment to the declaration mustassign an identifying number to each new unit created, and, except in thecase of subdivision or conversion of units described in subsection B,reallocate the allocated interests among all cooperative interests. Theamendment must describe any common elements and any limited common elementsthereby created and, in the case of limited common elements, designate theunit to which each is allocated to the extent required by § 55-445.
B. Development rights may be reserved within any real estate added to thecooperative if the amendment adding that real estate includes all mattersrequired by § 55-442 or § 55-443 as the case may be. This provision does notextend the time limit on the exercise of development rights imposed by thedeclaration pursuant to subdivision A 8 of § 55-442.
C. Whenever a declarant exercises a development right to subdivide or converta unit previously created into additional units, common elements or both:
1. If the declarant converts the unit entirely to common elements, theamendment to the declaration must reallocate all the allocated interests ofthe cooperative interest of which that unit is a part among the othercooperative interests as if that unit had been taken by eminent domain.
2. If the declarant subdivides the unit into two or more units, whether ornot any part of the unit is converted into common elements, the amendment tothe declaration must reallocate all the allocated interests of thecooperative interest of which that unit is a part among the cooperativeinterests created by the subdivision in any reasonable manner prescribed bythe declarant.
D. If the declaration provides, pursuant to subdivision A 8 of § 55-442, thatall of or a portion of the real estate is subject to the development right ofwithdrawal:
1. If all the real estate is subject to withdrawal, and the declaration doesnot describe separate portions of real estate subject to that right, none ofthe real estate may be withdrawn after a cooperative interest has beenconveyed to a purchaser; and
2. If a portion or portions are subject to withdrawal, no portion may bewithdrawn after a cooperative interest in that portion has been conveyed to apurchaser.
(1982, c. 277.)