Art. 6

Declaration Article 6

Exhibit III

Declaration of Protective Covenants, Restrictions, and Easements

Article 6 - Assessments

6.1 Purpose. Assessments levied by the Association shall be used to promote the common health, safety, benefit, recreation, welfare and aesthetics of the Owners and to maintain, repair and replace the Common Properties and such Portion of Residential Units and as delegated to the Association in this Declaration.

6.2 Assessments. The Board shall have the power to fix, determine and collect from all Owners, as provided in the By-Laws, the sums necessary and adequate to provide for the Common Expenses and such other expenses as are specifically provided for in this Declaration and the By-Laws. The Board shall furnish prompt notice to Owners of all assessments payable.

A. Allocation. Unless otherwise stipulated, all assessments shall be levied on an equal, prorata basis with all Owners; provided, however, for any CLT-owned Residential Unit for which the CLT has an outstanding CLT Lease Agreement, the Long-Term Lessees shall be exclusively assessed instead of the CLT. Should the CLT be the owner of any Residential Unit that is not subject to a CLT Lease Agreement, then the CLT shall be assessed for the assessments chargeable to such Residential Unit. Should the Association be the owner of any Residential Unit (s), the assessment which otherwise would be due and payable to the association on such Residential Units, shall be levied ratably among all of the Owners excluding the Association.

B. Special Assessments. Should the assessments prove to be insufficient to pay the costs of operation of the Association, or should any emergency arise, including, without limitation, the following: (a) reconstruction of portions of the Common Properties; and (b) unexpected repairs or replacements. The Board shall have the authority to levy such additional assessment (s) as it may deem necessary, subject to obtaining the Association Membership's approval of such Special Assessment by a majority of those Members voting at a duly called meeting of the Association at which a quorum is present. The specific purpose (s) of any Special Assessment shall be set forth in a written notice of such assessment sent or delivered to each Owner. the funds collected pursuant to a Special Assessment shall be used only for the specific purpose (s) set forth in such notice or returned to the Owners; provided, however that upon completion of such specific purpose (s), any excess funds shall be considered Common Surplus. Anything herein to the contrary notwithstanding, so long as Declarant owns at least two (2) Residential Units in The Village, no Special Assessment shall be authorized without Declarant's prior written approval. Special Assessments deemed to be for costs of operation primarily for the benefit of Lots or Residential Units, shall be assess only against Lots or Residential Units, and Special Assessments deemed to be for cost of operation primarily for the benefit of shall be assessed only against.

C. Certificate of Unpaid Assessments. Within fifteen (15) days after a request by a Owner or Residential Unit mortgagee, the Association shall provide a certificate stating all assessments and other monies owed tow the Association by the Owner with respect to the Residential Unit. Any person other than the Owner who relies upon such certificate shall be protected thereby.

D. Payment; Default. The assessments levied against each Owner shall be payable at the main office of the Association in such installments and at such time as may be determined by the Board of Administration as provided in the By-Laws. The payment of any such assessment shall be in default if it is not paid to the Association on or before the due date.

6.3 Annual Assessments; Budget. The Board shall fix, determine and collect the sums necessary and adequate to pay for the general expenses of the Association. The annual assessment shall be determined by the Board based upon an estimated annual budget, which shall be prepared at least forty-five (45) days prior to the commencement of the fiscal year. The Association's fiscal year shall be the calendar year beginning with the calendar year in which this Declaration is recorded in the Public Records of the County. Assessments shall be payable monthly in advance or at such other time as determined by the Board at the main office of the Association. The payment of any assessment shall be in default if it is not paid to the Association on or before its due date.

6.4 Special Individual Assessments. In addition to the Annual assessments, and Special Assessments, the Association may levy special assessments to pay the costs of such items as are determined necessary or appropriate by the Board. Special individual assessments against certain Lots, Residential Units, and Owners and in differing amounts as necessary or appropriate.

6.5 Subordination of Liens to Mortgages. Assessment liens shall be superior to all other liens, except tax liens and first mortgage liens in favor of Institutional Lenders or Declarant which are amortized n monthly or quarter-annual payments over a period of not less than ten (10) years. The transfer of a Lot or an interest of a Long-Term Lessee, pursuant to a decree of foreclosure or where the Institutional Lender takes fee simple title or an assignment of the CLT Lease Agreement in lieu of foreclosure, shall extinguish the lien of such assessments as to payments which became due and payable prior to the date of such decree or assignment in lieu of foreclosure only pursuant to superior mortgages as provided above. Such transfer shall not relieve such Lot, Residential Units, from liability for any assessments thereafter becoming due, nor from the lien of any subsequent assessment.

6.6 Certificates. The Association shall upon demand at any time furnish to any Owner liable for said assessment a certificate in writing by an officer of the Association, setting forth whether assessments have been paid. Such certificate shall be conclusive evidence as to any assessment therein stated to having been paid.

6.7 Liability of Declarant. Anything to the contrary herein notwithstanding, Declarant shall not be liable for any Assessments imposed upon Residential Units or Lots for which it is the Owner as long as the Declarant pays all deficits in operation of the Association, above the Assessments and capital contributions and other sums collectible from other Owners or otherwise. Declarant may at any time and from time to time be relieved of all obligations to fund deficits by electing, for any Assessment period or periods, to pay Assessments imposed on Residential Units or Lots for which it is Owner.

6.8 Initial Assessment for New Members. Declarant shall collect from every Owner at the time of closing and every such Owner, other than Declarant, its successors or assigns, shall pay to the Association an amount equal to two months of monthly assessment charges to be used as working capital for the Association. This obligation to pay an initial capital assessment shall apply to transferees from the Declarant and all subsequent transferees from time to time.