Common use of Special Assessments for Capital Improvements Clause in Contracts

Special Assessments for Capital Improvements. (i) In addition to the annual operating assessments, the Association may levy, in any fiscal year, special assessments to construct, reconstruct or replace capital improvements on or constituting a part of the Common Areas and/or personal property to the extent that reserves therefor are insufficient, provided that new capital improvements not replacing existing improvements shall not be constructed nor funds assessed therefor, if the cost thereof in any fiscal year would exceed an amount equal to five percent (5%) of that fiscal year’s budget, without the prior consent of Lot Owners exercising no less than seventy-five percent (75%) of the voting power of Lot Owners. (ii) Any such assessment shall be divided equally among all Lots, and shall become due and payable on such date or dates as the Association determines following written notice to the Lot Owners.