55-471 - Assessments for common expenses.
§ 55-471. Assessments for common expenses.
A. Until the association makes a common expense assessment, the declarantshall pay all common expenses. After any assessment has been made by theassociation, assessments must be made at least annually, based on a budgetadopted at least annually by the association.
B. Except for assessments under subsections C, D, E, and F, all commonexpenses must be assessed against all the cooperative interests in accordancewith the allocations set forth in the declaration pursuant to subsection A of§ 55-444.
Any past due common expense assessment or installment thereof bears interestat the rate established by the association not exceeding eighteen percent peryear.
C. To the extent required by the declaration:
1. Any common expense associated with the maintenance, repair or replacementof a limited common element must be assessed against the cooperativeinterests for the units to which that limited common element is assigned,equally, or in any other proportion that the declaration provides;
2. Any common expense or portion thereof benefiting fewer than all of theunits must be assessed exclusively against the cooperative interests for theunits benefited; and
3. The costs of insurance must be assessed in proportion to risk, and thecosts of utilities must be assessed in proportion to usage.
D. Assessments to pay a judgment against the association may be made onlyagainst the cooperative interests in the cooperative at the time the judgmentwas entered, in proportion to their common expense liabilities.
E. If any common expense is caused by the negligence or other misconduct ofany proprietary lessee, or of his family members, tenants or other invitees,the association may assess that expense exclusively against his cooperativeinterest.
F. Notwithstanding any other provision in this section, in any cooperativewhere permanent residency is, in general, restricted to individuals age 55and over and the primary purpose of the association is to provide servicesand amenities to the residents of the cooperative that are consistent withthe services and amenities typically provided to residents of full servicesenior housing communities in the United States, the declaration may provide,or may be amended to provide by vote or agreement of proprietary lessees ofcooperative interests to which at least two-thirds of the votes in theassociation are allocated (or any larger majority the declaration specifies),that:
1. Common expenses may be assessed against all cooperative interests inaccordance with the standards in general use from time to time among fullservice senior housing communities in the United States for the purpose offairly and equitably establishing the fees and charges imposed on theirresidents to pay for all common expenses of such senior housing communities,including the expenses of providing services and amenities, such standards tobe determined by the executive board of the association, acting reasonably;
2. Common expenses may be assessed against any cooperative interest which hasbeen created pursuant to the declaration but as to which construction of theunit appurtenant thereto has not been completed; provided, that nothingcontained herein shall relieve the declarant of its obligations undersubsection B of § 55-464; and
3. Common expenses may be assessed against any cooperative interest as towhich the unit appurtenant thereto has been completed until the unit isinitially permanently occupied; provided, however, that all such cooperativeinterests shall pay all direct expenses of the association related to suchcooperative interests and any common expenses which directly benefit suchcooperative interest, in each case, determined in accordance with theprovisions set forth in the declaration or the association's by-laws;provided, however, that if neither the declaration nor the by-laws containprovision therefor, then such expenses shall be paid in accordance with theallocations set forth in the declaration pursuant to subsection A of § 55-444.
G. If common expense liabilities are reallocated, common expense assessmentsand any installment thereof not yet due shall be recalculated in accordancewith the reallocated common expense liabilities.
(1982, c. 277; 2008, c. 627.)