BYLAWS OF WOODS WEST NO. 1 & NO. 2
Woods West No. 1 & No. 2, a residential site condominium Project located in Clayton Township, Genesee County, Michigan, shall be administered by an Association of Co-owners which shall be a Michigan non-profit corporation (the “Association”) responsible for the management, maintenance, operation and administration of the Common Elements, easements and affairs of the Project in accordance with the Condominium Documents and the laws of the State of Michigan.
These Bylaws shall constitute both the Bylaws referred to in the Master Deeds and required by Section 3(8) of Act and the Bylaws provided for under the Michigan Nonprofit Corporation Act. Each Co- owner shall be entitled to membership and no other person or entity shall be entitled to membership. The share of a Co-owner in the funds and assets of the Association cannot be assigned, pledged or transferred to any manner except as an appurtenance to his Unit. |
The Association shall keep current for copies of the Master Deed, all amendments to the Master Deed, and other Condominium Documents for the Project available at reasonable hours for inspection by the Co- owners, prospective purchasers and prospective mortgagees of Units in the Project. All Co-owners in the Project and all persons using or entering upon or acquiring any interest in any unit or Common Elements shall be subject to the provisions and terms set forth in the Condominium Documents.
These Bylaws are established for the purpose of governing the administration of the Woods West Condominium and to assure the continued maintenance of the Condominium as a beautiful and harmonious residential development and shall be binding upon the Association and all Co-owners. |
Article 2 — Voting
§ 2.1. Vote. Except as limited in these Bylaws, each Co-owner shall be entitled to one vote for each Condominium Unit owned. |
§ 2.2. Eligibility to Vote. No Co-owner shall be entitled to vote at any meeting of the Association until they have presented evidence of ownership of a Unit in the Project to the Association. The vote of each Co-owner may be cast only by the individual representative named by the Co-owner in the notice required in Section 8.3 or by a proxy given by that representative. A Co-owner in default shall not be entitled to vote at any meeting of the Association as long as such default continues. |
Article 3 — Meetings
§ 3.1. Annual Meetings. Annual meetings of members of the Association shall be held on a date selected by the Board of Directors, at a time and place determined by the Board of Directors. At those meetings, the Co- owners shall elect by ballot or hand vote a Board of Directors in accordance with Article XI of these Bylaws. The Co-owners may also transact other business of the Association that properly comes before them. |
§ 3.2. Special Meetings. The President shall call a special meeting of the Co-owners if directed by resolution of the Board of Directors or upon a petition signed by the one-third (1/3) of the Co- owners presented to the Secretary of the Association. Notice of any special meeting shall state the time, place and purposes of the meeting. Only the business stated in the notice shall be transacted at a special meeting. |
§ 3.3. Notice of Meetings. The Secretary shall (or other Association officer in the Secretary’s absence) serve a notice of each annual or special meeting, stating the purpose, time and place of the meeting upon each Co-owner of record at least 10 days but not more than 60 days prior to the meeting. The mailing of a notice (mail or e-mail) of each named representative at their address shown in the notice required by Section 8.3, shall be deemed notice served. Any member may waive notice in writing. The waiver, when filed in the records of the Association, shall be deemed due notice. |
§ 3.4. Adjournment. If any meeting of Co-owners cannot be held because of quorum is not in attendance, the Co-owners who are present may adjourn the meeting to a time not less than 48 hours from the time the original meeting was called. |
§ 3.5. Order of Business. The order of business at all meetings of the members shall be as follows: (a) roll call to determine the voting power represented at the meeting; (b) proof of notice of meeting or waiver of notice; (c) reading of minutes of preceding meeting; (d) reports of officers; (e) reports of committees; (f) appointment of inspectors of election (at meetings held for the purpose of electing Directors or officers); (g) election of Directors (at meetings held for that purpose); (h) unfinished business; and (i) new business. Meetings of members shall be chaired by the most senior officer of the Association present at the meeting. For purposes of this Section, the order of seniority of officers shall be President, Vice President, Secretary/ Treasurer. |
§ 3.6. Action Without Meeting. Any action that may be taken at a meeting of the members (except for the election or removal of Directors) may be taken without a meeting by written ballot of the members. Ballots shall be solicited in the same manner as provided in Section X for the giving of notice of meetings of members. Solicitations shall specify: (a) the number of responses needed to meet the quorum requirements; (b) the percentage of approvals necessary to approve the action; and (c) the time by which ballots must be received in order the be counted. The form of written ballot shall afford an opportunity to specify a choice between approval and disapproval of each matter and shall provide that, where the member specifies a choice, the vote shall be cast in that manner. Approval by written ballot shall be constituted by receipt, with the specified time period of (i) a number of ballots that equals or exceeds the quorum that would be required if the action were taken at a meeting; and (ii) a number of approvals that equals or exceeds the number of votes that would be required for approval if the action were taken at a meeting which the total number of votes cast was the same as the total number of ballots cast. |
§ 3.7. Consent of Absentees. The transactions at any meeting of members, either annual or special, however called and noticed, shall be as valid as though made at a meeting duly held after regular call and notice, if a quorum is present either in person or by proxy; and if, either before or after the meeting, each of the members not present in person or by proxy, signs a written waiver of notice, or a consent to the holding of that meeting, or any approval of the minutes. All waivers, consents or approvals shall be filed with the corporate records or made a part of the minutes of the meeting. |
§ 3.8. Minutes; Presumption of Notice. Minutes or a similar record of the proceedings of meetings of members, when signed by the President or Secretary, shall be presumed truthfully to evidence the matters set forth in the minutes. A recitation in the minutes of a meeting that notice of the meeting was properly given shall be prima facie evidence that proper notice was given. |
§ 3.9. Quorum. The presence in person or by proxy of 30% of the Co-owners in number qualified to vote shall constitute a quorum for holding a meeting of the members of the Association, except for voting on questions specifically required by the Condominium Documents to require a greater quorum. The written vote (hand delivered, mailed or e-mailed) of any person furnished at or prior to any duly called meeting at which that person is not otherwise present in person or by proxy shall be counted in determining the presence of a quorum with respect to the question upon which the vote is cast. |
§ 3.10. Voting. Votes may cast only in person or by writing duly signed by the named voting representative not present at a given meeting in person or by proxy. Proxies and any written votes (hand delivered, mailed or e-mailed) must be filed with the Secretary of the Association at or before the appointed time of each meeting of the members of the Association. Cumulative voting shall not be permitted. |
§ 3.11. Majority. A majority, except where otherwise provided, shall consist of more than 50% in number of those qualified to vote, present in person or by proxy (or written vote, if applicable) at a given meeting of the members of the Association for approval or disapproval of any matter brought up at such meeting. If expressly provided in these Bylaws, a majority may be required to exceed a simple majority. |
3.11.1 In the event the Co-Owner of a Unit sells such Unit pursuant to a Land Contract, the vendee may be considered the owner for purposes of membership in the Association with voting privileges, upon consent of the vendor and written notice thereof to the Association. |
§ 4.1. Records. The Association shall keep detailed books of account showing all expenditures and receipts of administration, a specification of the maintenance and repair expenses of the Common Elements and any other expenses incurred by or on behalf of the Association and the Co-owners. All Association records shall be open for inspection by the Co-owners and their mortgages during ordinary working hours. The Association shall prepare and distribute to each Co- owner at least once a year a financial statement, the contents of which shall be defined by the Association. The books of account shall be audited at least annually by qualified independent auditors, reviewed by the board of Directors and presented to Association members at a regularly held Association Meeting. The auditors need not be certified public accountants and the audit need not be a certified audit. Any institutional holder of a first mortgage lien on any Unit in the Condominium shall be entitled to receive a copy of the annual audited financial statement within 90 days following the end of the Association’s fiscal year upon request. Audit and accounting expenses shall be expenses of Association. |
§ 4.2. Fiscal Year. The fiscal year of the Association shall be the calendar year. The commencement date of the fiscal year shall be subject to change by the Directors for accounting reasons or other good cause. |
§ 4.3. Bank. Funds of the Association shall be deposited in a bank or savings association designated by the Board of Directors and shall be withdrawn only upon the check or order of the officers, employees or agents designated by resolution of the Board of Directors. The funds may be invested in accounts or deposit certificates of a bank or savings association insured by the Federal Deposit Insurance Corporation or in interest-bearing obligations of the United States Government. |
§ 5.1. Qualification of Directors. The Board of Directors shall consist of the number of members set forth in Section 10.2. All directors must be members of the Association. Board Members shall serve without compensation. |
§ 5.2. Election of Directors. The Board of Directors of the Association shall be elected annually by members of the Association at the annual meeting of the Woods West Condominium Association. The Board shall consist of 9 members of the Woods West Condominium Association. The Board of Directors term of office shall run from Annual Meeting to the next Annual Meeting. |
§ 5.3. Powers and Duties. The Board of Directors shall have the powers and duties necessary for the administration of the affairs of the Condominium and may do all acts and things not prohibited by the Condominium Documents or required to be exercised and done by the Co- owners. |
5.4. Other Duties. In addition to the duties imposed by these Bylaws or any further duties imposed by resolution of the members of the Association, the Association shall be responsible specifically for the following: |
§ 5.4.1. To manage and administer the affairs of and to maintain the Project and the Common Elements. |
§ 5.4.2. To levy and collect assessments from the members of the Association and to use the proceeds for the purposes of the Association. |
§5.4.3 To carry insurance and collect and allocate the insurance proceeds. |
§ 5.4.4. To contract for and employ persons, firms, corporations or other agents to assist in the management, operation, maintenance and administration of the Project. |
§ 5.4.5. To rebuild Common Element improvements after casualty. |
§ 5.4.6. To borrow money and issue evidences of indebtedness in carrying out the purposes of the Association, and to secure them by mortgage, pledge, or other lien on property owned by the Association, but only if those actions are approved by affirmative vote of 2/3 of all the members of the Association in number. |
§ 5.4.7. To acquire, maintain and improve, buy, operate, manage, sell, convey, assign, mortgage or lease any real or personal property (including any Unit in the Condominium and easements, rights-of- way and licenses) on behalf of the Association in carrying out the purposes of the Association. |
§ 5.4.8. To establish and appoint members to any committees it deems necessary, convenient or desirable for the purpose of implementing the enforcement and administration of the Condominium and to delegate to those committees any functions or responsibilities that are not required by law or the Condominium Documents to be performed by the Board. |
§ 5.4.9. To make rules and regulations in accordance with these Bylaws. |
§ 5.4.10. To enforce the provisions of all Condominium Documents. |
§ 5.5. Management Agent. The Board of Directors may employ for the Association a professional management agent at reasonable compensation established by the Board to perform the duties and services that the Board authorizes, including, but not limited to, the duties listed herein. The Board may delegate to the management agent any other duties or powers that are not required by law or by the Condominium Documents to be performed by or have the approval of the Board of Directors or the members of the Association. All service and management contracts shall comply with Section 55 of the Act. |
§ 5.8. Vacancies. Vacancies in the Board of Directors that occur caused by any reason other than the removal of a Director by a vote of the members of the Association shall be filled by vote of the majority of the remaining Directors, even though they may constitute less than a quorum. Each Director elected shall serve until a successor is elected at the next annual meeting of the members of the Association. |
§ 5.9. Removal. At any regular or special meeting of the Association duly called with due notice of the removal action proposed to be taken, any one or more of the Directors may be removed without cause by the affirmative vote of more than 50% in number of all of the Co-owners and a successor may then and there be elected to fill the resulting vacancy. The quorum requirement for the purpose of filling that vacancy shall be the normal 30% requirement set forth in Section |
§ 5.10. First Meeting. The first meeting of a newly elected Board of Directors shall be held within 30 days of election at the place designated by the Directors at the meeting at which they were elected; no notice to those Directors shall be necessary in order to hold that meeting if a majority of the whole Board shall be present. |
§ 5.11. Regular Meetings. Regular meetings of the Board of Directors may be held at the times and places determined by a majority of the Directors. At least two regular meetings shall be held during each fiscal year. Notice of regular meetings of the Board of Directors shall be given to each Director personally, by mail, e- mail, or telephone at least 10 days prior to the date named for the meeting. |
§ 5.12. Special Meetings. Special meetings of the Board of Directors may be called by the President on 3 days notice to each Director given personally, by mail, e-mail or telephone, of the time, place and purpose of the meeting. Special meetings of the Board of Directors shall be called by the President or Secretary in the same manner on the written request of a Director. |
§ 5.13. Waiver of Notice. Before or at any meeting of the Board of Directors, any Director may, in writing, waive notice of the meeting. That waiver shall be equivalent to the giving of notice. Attendance by a Director at any meetings of the Board shall be deemed a waiver of notice by him. If all the Directors are present at any meeting of the Board, no notice shall be required and any business may be transacted at the meeting. |
§ 5.14. Quorum. At all meetings of the Board of Directors, a majority of the Directors shall constitute a quorum for the transaction of business. The acts of the majority of the Directors present at a meeting at which a quorum is present shall be the acts of the Board of Directors. If, at any meeting of the Board of Directors, a quorum is not present, then the majority of those present may adjourn the meeting to a subsequent time upon 24 hours’ prior written notice delivered to all Directors not present. At any adjourned meeting, any business that might have been transacted at the meeting as originally called may be transacted without further notice. The joinder of a Director in the action of a meeting by signing and concurring in the minutes, shall constitute the presence of that Director for purposes of determining a quorum. |
§ 6.1. Officers. The principal officers of the Board of Directors shall be a President, a Vice President, and Secretary-Treasurer. Officers shall serve a term of one year and may be re-elected. |
§ 6.1.1. President. The President shall be the chief executive officer of the Association. He or she shall preside at all meetings of the Association and of the Board of Directors. He or she shall have all of the general powers and duties which are usually vested in the office of the President of an association. |
§ 6.1.2. Vice President. The Vice President shall take the place of the President and perform his or her duties whenever the President is absent or unable to act. If neither the President nor the Vice President is able to act, the Board of Directors shall appoint some other member of the Board to act on an interim basis. |
§ 6.1.3. Secretary. The Secretary shall keep the minutes of all meetings of the Board of Directors and the minutes of all meetings of the members of the Association; he or she shall have charge of the corporate seal, if any, and of those books and papers as Board of Directors may direct; and he or she shall, in general, perform all duties incident to the office of the Secretary. |
§6.1.4. Treasurer. The Treasurer shall have responsibility for the Association’s funds and securities and shall be responsible for keeping full and accurate accounts of all receipts and disbursements in books belonging to the Association. He or she shall be responsible for the deposit of all monies and other valuable effects in the name and to the credit of the Association, and in the depositories designated by the Board of Directors. |
§ 6.2. Election. The Officers of the Board of Directors shall be elected annually by Members of the Association at the annual meeting of the Woods West Condominium Association and shall hold office at the pleasure of the Board. |
§ 6.3. Removal. Upon affirmative vote of a majority of the members of the Board of Directors, any officer may be removed either with or without cause. His or her successor may be elected at any regular meetings of the Board of Directors, or at any special meeting of the Board called for that purpose. No removal action may be taken unless the matter is included in the notice of the meeting. The officer who is proposed to be removed shall be given an opportunity to be heard at the meeting. |
§ 6.4. Duties. The officers shall have those other duties, powers and responsibilities authorized by the Board of Directors. |
§ 7.1. Seal. The Association may have a seal. If the Board determines that the Association shall have a seal, then it shall have inscribed on it the name of the Association, the words “corporate seal”, and “Michigan”. |
§ 7.2. Reserved Rights of WWCA Board of Directors. |
§ 7.2.2. Suitability The WWCA Board shall have the right to refuse to approve any plan or specifications, or grading or landscaping plans that are not suitable or desirable in its opinion for aesthetic or other reasons; and in passing upon the plans, specifications, grading or landscaping, it shall have the right to take into consideration the suitability of the proposed structure, improvement or modification, the site upon which it is proposed, and the degree of harmony with the Condominium as a whole. Planting and maintenance of trees, shrubs, and flowers will be the responsibility of each Co-owner. No ornamental structures will be allowed without written approval. No vegetable gardens will be allowed forward of the rear building line. |
§ 7.2.3. Board of Directors Right to Approve Contractors. The WWCA Board reserves the right to approve or disapprove, in its sole discretion, any or all contractors for construction of residences and related structures to be built within the Condominium Premises, for the purpose of regulating construction or activities and promoting high quality construction standards that comply with Local Building Codes and the Master Deeds. |
§ 7.2.4. Enforcement of Bylaws. The Woods West Condo Association Board shall have the responsibility and the obligation to enforce the provisions contained in these Bylaws including the restrictions set forth in Article II. The Project shall at all times be maintained in a manner consistent with the highest standards of a beautiful, serene, private, residential community for the benefit of the Co- owners and all persons having an interest in the Condominium. |
§ 8.1. Indemnification. Every director and officer of the Association shall be indemnified by the Association against all expenses and liabilities, including actual and reasonable counsel fees and amounts paid in settlement, incurred by or imposed upon him or her in connection with any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, and whether formal or informal, to which he or she may be a party or in which he or she may become involved by reason of his or her being or having been a director or officer of the Association, whether or not he or she is a director or officer at the time the expenses are incurred, except as otherwise prohibited by law. In the event of any claim for reimbursement or indemnification based upon a settlement by the director or officer seeking the reimbursement or indemnification, the indemnification shall apply only if the Association (with the director seeking reimbursement abstaining) approves the settlement and reimbursement as being in the best interest of the Association. |
The foregoing right of indemnification shall be in addition to and not exclusive of all other rights to which a director or officer may be entitled. At least ten (10) days prior to payment of any indemnification that it has approved, the Association shall notify all Co-owners of the payment.
Further, the Association is authorized to carry officers’ and directors’ liability insurance covering acts of the officers and directors of the Association in amounts it deems appropriate |
All expenses arising from the management, administration and operation of the Association in carrying out its authority and duties as set forth in the Condominium Documents and the Act shall be levied by the Association against the Units and the Co- owners in accordance with the following provisions: |
§ 9.1. Assessments for Common Elements. All costs incurred by the Association in satisfaction of any liability arising within, caused by, or connected with the Common Elements or the administration of the Project shall be expenditures affecting the administration of the Project, and all sums received as the proceeds of, or pursuant to, any policy of insurance securing the interest of the Co-owners against liabilities or losses arising within, caused by, or connected with the Common Elements or the administration of the Project shall be receipts affecting the administration of the Project, within the meaning of Section 54(4) of the Act. If snow removal is not performed by a governmental body, the Association reserves the right to contract for the removal of snow from paved areas located within General Common Element areas and roadways dedicated to the public except the approaches of individual driveways servicing the Units. The cost of snow removal shall be an expense of administration of the Project. |
§ 9.2. Determination of Assessments. Assessments shall be determined in accordance with the following provisions: |
§ 9.3. Any other unusual common expenses benefiting less than all of the Condominium Units, or any expenses incurred as a result of the conduct of less than all those entitled to occupy the Condominium Project or by their licensees or invitees, shall be specially assessed against the Condominium Unit or Units involved. |
§ 9.4. Appointment of Assessments and Penalty for Default. Unless otherwise provided in these Bylaws or in the Master Deed, all assessments levied against the Co-owners to cover expenses of administration shall be apportioned among and paid by the Co- owners in accordance with the percentage of value allocated to each Unit in Article V of the Master Deed, which says all Units are of equal value.
Payment of an assessment shall be on a monthly, quarterly, semiannual or annual basis, as determined by the Association. The payment of an assessment shall be in default if all or any part of that assessment is not paid to the Association in full on or before its due date. The Association may assess reasonable automatic late charges or may, under Sections 19.3 & 19.4, levy fines for late payment. Each Co-owner (whether 1 or more persons) shall be and remain personally liable for the payment of all assessments (including fines for late payment and costs of collection and enforcement of payment) pertinent to his Unit that are levied while he is the owner. However, a land contract purchaser from any Co- owner shall be so personally liable and a land contract holder shall not be personally liable for all assessments levied up to and including the date upon which the land contract seller actually takes possession of the Unit following extinguishment of all rights of the land contract purchaser in the Unit. |
§ 9.5. Waiver of Use or Abandonment of Unit. No Co-owner may exempt himself from liability for his contribution toward the expenses of administration by waiver of the use or enjoyment of any of the Common Elements or by the abandonment of his Unit. |
§ 9.6. Remedies. In addition to any other remedies available to the Association, the Association may enforce collection of delinquent assessments by a suit of law for a money judgment or by foreclosure of the statutory lien that secures payment of assessments. In the event of default by any Co- owner in the payment of any installment of the annual assessment levied against his Unit, the Association shall have the right to declare all unpaid installments of the annual assessment for the pertinent fiscal year immediately due and payable. |
§ 9.7. Notice of Action. Neither a judicial foreclosure action nor a suit at law for a money judgment shall be commenced, nor shall any notice of foreclosure by advertisement be published, until the expiration of 10 days after mailing, by first class mail, postage prepaid, addressed to the delinquent Co-owner(s) at his or their last known address, a written notice that 1 or more installments of the annual assessment levied against the pertinent Unit is or are delinquent and that the Association may invoke any of its remedies if the default is not cured within 10 days after the date of mailing. Such written notice shall be accompanied by a written affidavit of an authorized representative of the Association that sets forth (i) the affiant’s capacity to make the affidavit, (ii) the statutory and other authority for the lien, (iii) the amount outstanding (executive of interest, costs, attorney’s fees and future assessments), (iv) the legal description of the subject Unit(s), and (v) the name(s) of the Co-owner(s) of record. |
The affidavit shall be recorded in the office of the Genesee County Register of Deeds prior to commencement of any foreclosure proceeding, but it need not have been recorded as of the date of mailing. If the delinquency is not cured within the 10- day period, the Association may take any remedial action available to it under these Bylaws or Michigan law. If the Association elects to foreclose the lien by advertisement, then the Association shall so notify the delinquent Co-owner and shall inform him that he may request a judicial hearing by bringing suit against the Association. |
§ 10.1. Legal Action. Failure to comply with any of the terms or provisions of the Condominium Documents shall be grounds for relief including an action to recover sums due for damages, injunctive relief, foreclosure of lien (if default in payment of assessment) or any combination. Relief may be sought by the Association or, if appropriate, by an aggrieved Co- owner or Co-owners |
10.1.1 The notice of a lien shall be recorded in the office of the Genesee County register of deeds and shall be served upon the delinquent Co-Owner by first class mail, addressed to the last known address of the Co-Owner. |
§ 10.2. Recovery of Costs. In any proceeding arising because of an alleged default by any Co- owner, the Association, if successful, shall be entitled to recover the costs of the proceeding and reasonable attorney’s fees (not limited to statutory fees) as determined by the court. No Co-owner committing the default shall be entitled to recover attorney’s fees. |
§ 10.3. Removal and Abatement. The violation of any of the provisions of the Condominium Documents shall also give the Association or its duly authorized agents the right to enter upon the Common Elements or upon any Unit (but not inside any residence), where reasonably necessary, and summarily remove and abate, at the expense of the Co-owner in violation, any structure, thing or condition existing or maintained contrary to the provisions of the Condominium Documents. The Association shall have no liability to any Co-owner arising out of the exercise of its removal and abatement power. |
§ 10.4. Assessment of Fines. The violation of any of the provisions of the Condominium Documents by any Co-owner shall be grounds for assessment by the Association, acting through its duly constituted Board of Directors, of monetary fines for violations. No fine may be assessed unless in accordance with the provisions of Article 20. |
§ 10.5. Non-waiver of Right. The failure of the Association or of any Co-owner to enforce any right, provision, covenant or condition that may be granted by the Condominium Documents shall not constitute a waiver of the right of the Association or of any Co- owner to enforce that right, provision, covenant or condition in the future. |
§ 10.6. Cumulative Rights, Remedies and Privileges. All rights, remedies and privileges granted to the Association or any Co-owner or Co- owners pursuant to any terms, provisions, covenants or conditions of the Condominium Documents shall be deemed to be cumulative. The exercise of any one or more shall not be deemed to constitute an election of remedies, nor shall it preclude the exercise of other and additional rights, remedies or privileges available to a party at law or in equity. |
§ 10.7. Enforcement of Provisions of Condominium Documents. A Co-owner may maintain an action against the Association and its officers and Directors to compel them to enforce the terms and provisions of the Condominium Documents. A Co-owner may maintain an action against any other Co-owner for injunctive relief and/ or damages for noncompliance with the terms and provisions of the Condominium Documents or the Act. |
§ 11.1. General. The violation by any Co-owner, occupant or guest of any provisions of the Condominium Documents including any duly adopted Rules and Regulations shall be grounds for assessment by the Association of monetary fines against the involved Co-owner. That Co-owner shall be deemed responsible for the violations whether they occur as a result of his personal actions or the actions of their family, guests, tenants or any other person admitted through him to the Condominium Premises. |
§ 11.2. Procedures. Upon any violation being alleged by the Board, the following procedures will be followed: |
§ 11.2.1. Notice. Notice of the violation, including the Condominium Document provision violated, together with a description of the factual nature of the alleged offense set forth with enough specificity to place the Co-owner on notice of the violation, shall be sent by first class mail, postage prepaid, or personally delivered to the representative of the Co- owner at the address shown in the notice required to be filed with the Association pursuant to Section |
§ 11.2.2. Opportunity to Defend. The offending Co- owner shall have an opportunity to appear before the Board and offer evidence in defense of the alleged violation. The appearance before the Board shall be at its next scheduled meeting, but the Co-owner shall not be required to appear less than 10 days from the date of the Notice. |
§ 11.2.3. Default. Failure to respond to the Notice of Violation constitutes a default. |
§ 11.2.4. Hearing and Decision. Upon appearance by the Co-owner before the Board and presentation of evidence of defense, or, upon the Co-owner’s default, the Board shall, by majority vote of a quorum of the Board, decide whether a violation has occurred. The Board’s decision is final. |
§ 11.3. Amounts. Upon violation of any of the provisions of the Condominium Documents and after default of the offending Co-owner or upon the decision of the Board as recited above, the following fines shall be levied: |
§ 11.3.1. First Violation. No fine shall be levied. |
§ 11.3.2. Second Violation. Twenty-Five Dollars ($25.00) fine with a ten day (10) grace period to pay following notification of the fine by the Association Board of Directors. Thereafter, 10% interest added for each day late following the grace period. |
§ 11.3.3. Third Violation. Fifty Dollars ($50.00) fine with a ten (10) day grace period to pay following notification of the fine by the Association Board of Directors. Thereafter, 10% interest added for each day late following the grace period. |
§ 11.3.4. Fourth Violation and Subsequent Violations. One Hundred Dollars ($100.00) fine with a ten (10) day grace period to pay following notification of the fine by the Association Board of Directors. |
Thereafter, 10% interest added for each day late following the grace period. |
§ 11.4. Collection. The fines levied pursuant to Section X |
§11.5 Payment. The above shall be assessed against the Co-owner and shall be due and payable as noted above. Failure to pay the fine will subject the Co-owner to all liabilities set forth in the Condominium Documents including, without limitation, those described in the Bylaws. For purposes of calculating fines under this Article, each day that a violation continues to exist after notice shall be deemed a separate violation. |
§11.6. Budget. The Board of Directors of the Association shall establish an annual budget in advance for each fiscal year. The budget shall project all expenses for the coming year that may be required for the proper operation, management and maintenance of the Project, including a reasonable allowance for reserves and contingencies. An adequate reserve fund for maintenance, repairs and replacement of those Common Elements that must be replaced on a periodic basis shall be established in the budget and must be funded by regular payments as set forth in Section X rather than by special assessments. At a minimum, the reserve fund shall be equal to 10% of the Association’s current annual budget on a noncumulative basis. Since the minimum standard required by this Paragraph may prove to be inadequate for this particular project, the Association of Co-owners should carefully analyze the Project to determine if a greater amount should be set aside, or if additional reserve funds should be established for other purposes from time to time. |
§11.6. Budget Notice. Upon adoption of an annual budget by the Board of Directors, copies of the budget shall be delivered in person, by mail or e-mailed to each Co-owner and the assessment for the year shall be established based upon the budget. The failure to deliver a copy of the budget to each Co- owner shall not affect or in any way diminish the liability of any Co-owner for any existing or future assessments. If the Board of Directors decides, in its sole discretion, that the assessments levied are or may be insufficient to pay the costs of operation and management of the Condominium, then it shall have the authority to increase the general assessment or to levy additional assessments that it deems necessary. The discretionary authority of the Board of Directors to levy assessments pursuant to this Paragraph shall rest solely with the Board of Directors for the benefit of the Association and its members, and shall not be enforceable by any creditors of or members of the Association. |
§11.7. Special Assessments. Special assessments in addition to those required in Paragraph X above, may be made by the Board of Directors from time to time and approved by the Co- owners as provided below to meet other requirements of the Association, including, but not limited to: (1) assessments for additions to the Common Elements of a cost exceeding $2,000.00 for the entire Project per year, (2) assessments to purchase a Unit upon foreclosure of the lien for assessments described in Section X, or (3) assessments for any other appropriate purpose not described elsewhere in these Bylaws. Special assessments referred to in this Paragraph 5.2.2 (but not including those assessments referred to in Paragraph 5.2.1 above, which shall be levied in the sole discretion of the Board of Directors) shall not be levied without the prior approval or more than 60% of all Co-owners in number. The authority to levy assessments pursuant to this Paragraph is solely for the benefit of the Association and its members and shall not be enforceable by any creditors of or members of the Association. |
§11.8. Assessment Payments shall be due and payable at such times as the Association shall determine, commencing with the acceptance of a deed to a Unit or with acquisition of fee simple title to a Unit by any other means. The payment of an assessment shall be in default if such assessment, or any part thereof, is not paid to the Association in full on or before the due date for such payment. A late charge of $25.00 per installment may be automatically assessed by the Association on each installment in default for more than ten days. Assessments in default shall earn interest at the rate of seven (7%) percent per annum until paid in full. Each Co-owner (whether one or more persons) shall be, and remain, personally, jointly and severally liable for this payment of all assessments pertinent to such Co-owner’s Condominium Unit while such Co-owner is the owner thereof. |
§11.9. A Co-owner in default shall not be entitled to vote at any meeting of the Association so long as such default continues |
§ 11.10. Expenses of Collection. The expenses incurred in collecting unpaid assessments, including interest, costs, actual attorney’s fees (not limited to statutory fees) and advances for taxes or other liens paid by the Association to protect its lien, shall be chargeable to the Co-owner in default and shall be secured by the lien on his Unit. |
§ 11.11. Liability of Mortgagee. Notwithstanding any other provisions of the Condominium Documents, the holder of any first mortgage covering any Unit in the Project which comes into possession of the Unit pursuant to the remedies provided in the mortgage or by the deed (or assignment) in lieu of foreclosure, or any purchaser at a foreclosure sale, shall take the property free of any claims for unpaid assessments or charges against the mortgaged Unit that accrue prior to the time the holder comes into possession of the Unit (except for claims for a pro rata share of the assessments or charges resulting from a pro rata reallocation of the assessments or charges to all Units including the mortgaged Unit. |
§ 11.12. Statement as to Unpaid Assessments. The purchaser of any Unit may request a statement of the Association as to the amount of any unpaid Association assessments thereon, whether regular or special. Upon written request to the Association accompanied by a copy of the executed purchase agreement under which the purchaser holds the right to acquire a Unit, the Association shall provide a written statement of the unpaid assessments that exist or a statement that none exist. That statement shall be binding upon the Association for the period stated. |
Upon the payment of the sum within the period stated, the Association’s lien for assessments as to that Unit shall be deemed satisfied; provided, however, that the failure of a purchaser to request such statement at least 5 days prior to the closing of the purchase of the Unit shall render any unpaid assessments and the lien securing them fully enforceable against the purchaser and the Unit itself, to the extent provided by the Act.
Under the Act, unpaid assessments constitute a lien upon the Unit and the proceeds of sale prior to all claims except real property taxes and first mortgages of record. |
§ 11.13. Property Taxes and Special Assessments. All property taxes and special assessments levied by any public taxing authority shall be assessed in accordance with the Section of 131 of the Act. |
§ 11.14. Foreclosure Proceedings. Each Co-owner, and every other person who has any interest in the Project, shall be deemed to have granted to the Association the unqualified right to elect to foreclose the lien securing payment of assessments either by judicial action or by advertisement. The provisions of Michigan law pertaining to foreclosure of mortgages by judicial action and by advertisement, as the same may be amended from time to time, are made a part of these Bylaws for the purposes of establishing the alternative procedures to be followed in lien foreclosure actions and the rights and obligations of the parties to those actions. |
Further, each Co-owner and every other person who has any interest in the Project shall be deemed to have authorized and empowered the Association to sell or to cause to be sold the Unit with respect to which the assessment(s) is or are delinquent and to receive, hold and distribute the proceeds of that sale in accordance with the priorities established by applicable law. Each Co- owner of a Unit in the Project acknowledges that at the time of acquiring title to his Unit, he was notified of the provisions of this Paragraph and that he voluntarily, intelligently and knowingly waived notice of any proceedings brought by the Association to foreclose by advertisement the lien for nonpayment of assessments and a hearing on the same prior to the sale of the subject Unit. |
§ 11.15. Personal Property Tax Assessment of Association Property. The Association shall be assessed as the person or entity in possession of any tangible personal property of the Condominium owned or possessed in common by the Co-owners, and those personal property taxes shall be treated as expenses of administration. |
§ 11.16. Construction Lien. A construction lien otherwise arising under Act No. 497 of the Michigan Public Acts of 1980, as amended, shall be subject to Section 132 of the Act. The notice of lien shall be in recordable form, executed by an authorized representative of the Association and may contain other information as the Association may deem appropriate.
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