The Bader Condominium Bylaws - Article VI

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Article VI. Operation of the Condominium

1. Determination of Common Expenses and Assessments Against Unit Owners

A. Fiscal Year

The fiscal year of the Condominium is the calendar year; provided, that the fiscal year may be changed by resolution of the Board of Directors at its discretion.

B. Annual Budget

At least sixty (60) days before the end of each fiscal year, the Board of Directors shall adopt an annual budget for the Condominium for the succeeding fiscal year (hereinafter called the "Annual Budget"). The Annual Budget shall contain an estimate of the amount necessary to pay the Common Expenses for the applicable fiscal year in a reasonably itemized form and a statement of the amount of the Common Expenses payable by each Unit Owner. Common Expenses shall include the amounts necessary to create and maintain the reasonable reserves authorized by Paragraph D of this Section 1. The Board of Directors shall send to each Unit Owner at least (30) days prior to the commencement of each fiscal year a copy of the Annual Budget for that fiscal year.

C. Assessment and Payment of Common Expenses

The total amount of the estimated funds required to pay the Common Expenses of the Condominium set for in the Annual Budget adopted by the Board of Directors for the fiscal year shall be assessed against each Unit in proportion to its respective Percentage Interest, and shall be a lien against each Unit Owner's Unit as of the first day of the fiscal year to which such Annual Budget applies. A Unit Owner shall be personally liable for all lawful Assessments, or installments thereof, levied against his/her Unit which become due while he/she is the owner of a Unit; and this liability of the Unit Owner is in addition to the lien for assessments in favor of the Association on the Condominium Unit created by the Act. On or before the first day of each fiscal year, and the first day of each of the succeeding 11 months in such fiscal year, each Unit Owner shall be obligated to pay to the Board of Directors or Managing Agent (as determined by the Board of Directors), one-twelfth of the Assessment for such fiscal year. Within 60 days after the end of each fiscal year, the Board of Directors shall send to each Unit Owner an itemized accounting of the Common Expenses actually incurred and paid for such fiscal year, together with an itemized statement of the amounts collected pursuant to the Assessment adopted by the Association for such fiscal year, any delinquencies in payment of assessments, the amount of any surplus or deficit and the amount of the reserves. Common Profits in excess of Common Expenses (including reserves) as of the end of a fiscal year shall be returned to the Unit Owners, credited against the Assessments due from the Unit Owners under the Annual Budget for the next succeeding fiscal year, in proportion to the Percentage Interest of their respective Units, or be added to reserve accounts, as may be determined by the Board of Directors. Any amounts returnable or creditable under the preceding provision to Owners who are delinquent in Assessments, shall first be applied against any such delinquency.

D. Reserve Fund for Capital Improvements, Repairs and Replacements

The Board of Directors shall establish and maintain a reasonable fund for capital improvements and for maintenance, repairs, and replacements, by providing for a reserve fund in the Annual Budget, segregating such reserve fund on the books of the Condominium, and allocating and paying monthly to such reserve fund one-twelfth of the total amount budgeted for such reserve fund for the current fiscal year. The portion of the Unit Owner's Assessment paid into such reserve fund shall be conclusively deemed to be contributions to the capital of the Condominium by Unit Owners. Such reserve fund may be expended for the purposes of capital improvements and replacements, and maintenance and repairs. If for any reason, including nonpayment of any Unit Owner's Assessment, such reserve fund is inadequate to defray the cost of a required capital improvement or replacement, the Board of Directors may at any time levy an additional Assessment against the Unit Owners in proportion to the respective Percentage Interest of their Units, payable into such reserve fund in a lump sum or in installments as the Board of Directors may determine. The Board of Directors shall give notice of any such further assessment on the Unit Owners by a statement in writing giving the amount and reasons therefore, and such additional Assessments shall become due and payable, unless otherwise specified in the notice, with the next monthly Assessment payment which is due more than 10 days after the delivery or mailing of such notice of additional Assessment. All Unit Owners shall be obligated to pay the adjusted monthly amount or, if the additional Assessment is not payable in installments, the amount of such Assessment.

E. Special Assessments

In addition to the Assessments authorized above, the Board of Directors may levy, as a contribution to the capital of the Condominium, a special Assessment for the purpose of defraying the cost of any unexpected repair or other nonrecurring contingency, or to meet any deficiencies occurring from time to time. The fund resulting from such special Assessment shall be segregated on the books of the Condominium and expended solely for the purposes for which it was assessed. Any such special Assessments shall be assessed in the manner set for in Paragraph D of this Section with respect to additional Assessments payable to the reserve fund for replacements.

F. Effect of Failure to Prepare or Adopt Annual Budget

The failure or delay of the Board of Directors to adopt the Annual Budget for any fiscal year shall not constitute a waiver or release in any manner of a Unit Owner's obligation to pay his/her allocable share of the Common Expenses as herein provided, whenever the same shall be determined, and in the absence of an Annual Budget or adjusted Annual Budget, each Unit Owner shall continue to pay a monthly Assessment at the rate established for the preceding fiscal year until a monthly Assessment is adopted under such new Annual Budget or adjusted Annual Budget and notice thereof has been sent to the Unit Owner.

G. Accounts

All amounts collected by the Board of Directors with respect to Assessments against the Unit Owners may be commingled in a single fund, but shall be held for each Unit Owner in accordance with his/her Percentage Interest.

2. Payment of Common Expenses

All Unit Owners shall be obligated to pay the Assessment for the Common Expenses adopted by the Association pursuant to Section 1 of this Article VI. No Unit Owner may exempt himself/herself from liability for his/her contribution toward Common Expenses by waiver of the use or enjoyment of any of the Common Elements or by abandonment of his/her Unit. No Unit Owner shall be liable for the payment of any part of the Common Expenses assessed against his/her Unit subsequent to a sale transfer, or other conveyance by him/her of such Unit. The purchaser of a Unit shall be jointly and severally liable with the selling Unit Owner for all unpaid Assessments against the latter for his/her proportionate share of the Common Expenses up to the time of the conveyance, without prejudice to the purchaser's right to recover from the selling Unit Owner the amounts paid by the purchaser therefore; provided, however, that any purchaser shall be entitled to a statement from the Board of Directors, or the Managing Agent, setting forth the amount of the unpaid Assessments against the selling Unit Owner and such purchaser shall not be liable for, nor shall the Unit conveyed be subject to a lien for, any unpaid Assessments in excess of the amount therein set forth; and provided, further, that if a First Mortgagee of record or any other purchaser of a Unit obtains title to the Unit as a result of foreclosure or deed (or assignment) in lieu of foreclosure or a first mortgage, such purchaser, its successors, and assigns shall not be liable for, and such Unit shall not be subject to, a lien for the payment of any Assessments, or installments to the foreclosure sale, conveyance, or assignment. Such unpaid Assessments due and payable prior to the assignment shall be collectible from all Unit Owners, including the purchaser, in proportion to their respective Percentage interest.

3. Collection of Assessments

The Board of Directors shall take prompt action to collect any Assessments for Common Expenses due from any Unit Owner which remain unpaid for more than 15 days after the due date for the payment thereof. In addition, the Board of Directors may, in its discretion, impose upon and collect from any such unit Owner (i) a penalty or penalties in connection with any such Assessment which remains unpaid for more than 15 days.; (ii) interest upon any such unpaid Assessment, the interest being set for the following year at 2 percentage points over the prime interest rate as published in the Wall Street Journal or successor paper on the first banking day in October, with the interest accruing from the fifteenth day after the due date thereof; and (iii) attorneys fees and legal costs expended by the Association in connection with efforts to collect such unpaid Assessment, whether or not legal proceedings are initiated in connection with such unpaid Assessment. The collection of such penalties, interest, and attorneys' fees and costs may be enforced against a Unit Owner and his/her Unit as if they constituted an Assessment for Common Expenses.

4. Statement of Unpaid Assessments

A. Upon written request to the Board of Directors by a Unit Owner of purchaser, the Board of Directors or a duly designated agent or the Managing Agent thereof, shall furnish (within the time period prescribed by the Act) a recordable statement setting forth the amount of unpaid Assessments, if any, currently levied against the Unit for which such information was requested.

B. The Board of Directors may impose a reasonable fee for each such statement requested and payment thereof shall be a prerequisite to the issuance of a statement.

5. Maintenance and Repair

A. By the Association

The Association acting through the Board of Directors, shall be responsible for the maintenance, repair, and replacement of the following, the cost of which shall be charged to all Unit Owners as a Common Expense.

(i) The General Common Elements, whether located inside or outside of the Units.

(ii) All portions of the Units which contribute to the support of the Building, excluding, however, the surfaces of all walls, floors, and ceilings of a Unit.

(iii) Incidental damage caused to a Unit by such work done by the Association; and

(iv) The maintenance of the exterior surface of the front door of each Unit.

This Paragraph A shall not relieve a Unit Owner of liability for damage to the Common Elements caused by the Unit Owner's negligence or intentional torts.

B. By the Unit Owner

Except for the portions of his/her Unit required to be maintained, repaired, and replaced by the Association, each Unit Owner's responsibility shall include but not be limited to the maintenance, repair, and replacement, at his/her own expense, of the following any interior walls; interior surfaces of ceiling, walls, and floor; door locks and hardware; windows and lighting fixtures; kitchen and bathroom fixtures, appliances, and equipment; and those parts of the heating, air conditioning and plumbing systems which are wholly contained within his/her Unit and serve no other Unit. Each Unit owner shall keep the interior of his/her Unit and its equipment and appurtenances in good order, condition, and repair and in a clean and sanitary condition, and shall do all redecorating, painting, and varnishing which may at any time be necessary to maintain the good appearance and condition of the Unit. In addition, each Unit Owner shall be responsible for all damage to any and all other Units or the Common elements resulting from his/her failure to make any of the repairs required to be made by him/her by this Section. Each Unit Owner shall perform his/her responsibility in such manner as shall not unreasonable disturb or interfere with the other Unit Owners. Each Unit Owner shall promptly report to the Board of Directors, the Managing Agent, or Manager any defects or need for repairs for which the Association is responsible. Each Unit Owner shall maintain those areas of a Unit exposed to public view in good condition in conformity with the dignity and character of the Condominium.

C. Manner of Repair and Replacements

All repairs and replacements shall be of first class quality and as nearly as practicable similar to the character of the construction or installation that existed immediately prior to the occasion that necessitated the repairs or replacements. Repairs and replacements may be done with contemporary building materials and equipment.

D. Unit Maintenance and Repair

The Board of Directors shall be permitted to allow employees of the Association to perform maintenance and repairs to units.

6. Additions, Alterations, or Improvements by the Association

Whenever in the judgement of the Board of Directors the Common Elements shall require additions, alterations, or improvements costing in excess of $25,000 or 10% of the Annual Budget, whichever is greater during any period of twelve consecutive months, and the making of such additions, alterations, or improvements shall have been approved by a majority of the Unit Owners, the Board of Directors shall proceed with such additions, alterations, or improvements and the cost thereof shall constitute part of the Common Expenses. Additions, alterations, or improvements costing less than $25,000 or 10% of the Annual Budget, whichever is greater during any period of twelve consecutive months may be made by the Board of Directors without approval of the Unit Owners and the cost thereof shall constitute part of the Common Expenses. Notwithstanding the foregoing, if, in the opinion of not less than 80% of the members of the Board of Directors, any such additions, alterations, or improvements are exclusively or substantially exclusively for the benefit of one or more Unit Owners requesting the same, such requesting Unit Owner(s) shall be assessed therefor in such proportion as they jointly approve or, if they are unable to agree thereon, in such proportions as may be determined by the Board of Directors.

7. Additions, Alterations, or Improvements by Unit Owner

No Unit Owner shall make any structural addition, alteration, or improvement in or to his/her Unit without the prior written consent to the Board of Directors. No Unit Owner shall paint or alter the exterior of the Building, including the doors and windows or the exterior of the Unit's entrance doors without the prior written consent of the Board of Directors, The Board of Directors shall be obligated to answer any written request by a Unit Owner for approval of a proposed structural addition, alteration, or improvement (by painting or otherwise) in such Unit Owner's Unit within forty-five (45) days after such request, and its failure to do so within the stipulated time shall constitute a consent of the Board of Directors to the proposed addition, alteration, or improvement. The Board of Directors may condition its consent upon such terms and conditions as it deems to be desirable or necessary to protect the Condominium and its use and enjoyment. Any application to any governmental authority for a permit to make an addition, alteration, or improvement in or to any Unit shall be executed by the Board of Directors only, without however incurring any liability on the part of the Board of Directors or any of them to any contractor, subcontractor, or material person on the account of such addition, alteration, or improvement, or to any person having any claim for injury to such person or damage to property arising therefrom. The provisions of this Section 7 shall not apply to a Unit Owner's painting, wallpapering, paneling, or making other like improvements to the interior of his/her own Unit which (a) do not affect the structural integrity of the Building and (b) do not require a governmental permit.

8. Restrictions on Use of Units and Condominium

A. The Board of Directors is authorized to promulgate, amend, and enforce the Rules and Regulations concerning the operation and use of the Condominium; provided, that such Rules and Regulations are not contrary to or inconsistent with the Act, the Declaration, or these Bylaws. A copy of the Rules and Regulations shall be furnished by the Board of Directors to each Unit Owner prior to the time the same becomes effective.

B. The use and occupancy of the Condominium is subject to the following restrictions:

(i) No Unit Owner or other resident of the Condominium shall post any advertisements or posters of any kind in or on the Condominium, except as authorized by the Board of Directors.

(ii) All Units shall be used only for private residential purposes, except for such temporary other uses as may be permitted by the Board of Directors. A Unit may, as an accessory use, be used for a "home occupation" as that term is defined in the zoning regulations of the District of Columbia provided that such use shall not unduly interfere with the comfort, safety or quiet enjoyment of another Owner or the orderly management of the Condominium. No activity shall be done or maintained in any Unit or upon any of the Common Elements which will not be in conformity with the zoning regulations of the District of Columbia.

(iii) No clothing, laundry, sheets, rugs, or wash shall be hung from or spread upon any window or exterior portion of a Unit or in or upon any Common Element (except for any designated laundry room). All refuse and trash shall be deposited in bins designated for such purposes.

(iv) Only recognized standard window treatments, such a shades, blinds, and draperies, shall be permitted upon any window; the installation, placement, hanging or spreading of anything else upon any window is prohibited. Seasonal decorations which are not permanently attached and do not mar or disturb any Common Element shall be permitted on Unit windows and the exteriors of Unit entrance doors.

(v) Any Unit Owner or resident who keeps or maintains a pet shall be responsible and may be assessed by the Board of Directors for any costs incurred by the Condominium in enforcing the Rules and Regulations prescribed or to be prescribed by the Board of Directors for the control and regulation of pets in the Condominium.

(vi) Unit Owners, residents, and lessees shall exercise extreme care to avoid unnecessary noise or the use of musical instruments, radios, televisions, and amplifiers that may disturb other Unit Owners.

(vii) No nuisances shall be allowed in the Condominium nor shall any use or practice be allowed which is a source of annoyance to its residents or which interferes with the peaceful possession or proper use of the Condominium by its residents.

(viii) No Unit Owner, resident, or lessee shall install wiring for electrical or telephone installation, television antennae, or other equipment, which protrudes through the walls or the roof of the Building or is otherwise visible on the exterior of the Building, except as presently installed or as authorized by the Board of Directors.

(ix) No Unit or Common Elements of the Condominium may be used for any unlawful purpose.

(x) A Unit Owner or resident shall not place or cause to be placed in the public hallways, walkways, alleyways, or other Common Elements any bicycles, furniture, packages, or objects of any kind. The public hallways, walkways, and alleyways shall be used for no purpose other than for normal transit through them.

(xi) Except as authorized by the Board of Directors, no Unit Owner, resident, or lessee shall direct or engage any employee of the Condominium on any private business of such Unit Owner, resident or lessee, nor shall he/she direct, supervise or in any manner attempt to assert control over any such employee or over any contractor acting under a contract or agreement with the Association.

(xii) No activity shall be done or maintained in any Unit or upon any Common Elements which will increase the rate of insurance on any Unit or the Common Elements or result in the cancellation of insurance thereon, unless such activity is first duly approved in writing by the Board of Directors.

(xiii) In the sue of the Units and the Common Elements of the Condominium, Unit Owners shall obey and abide by all valid laws, ordinances, and zoning and other governmental regulations affecting the same and all applicable Rules and Regulations adopted by the Board of Directors.

(xiv) The Common Elements shall be used only for the furnishing of the services and facilities for which they are reasonably suited and which are incident to the use and occupancy of the Units.

(xv) A Unit Owner may lease his/her Unit only for a term of not less than six (6) months, unless granted an expectation in writing by the Board of Directors, and only provided that (i) a fully conformed copy of said lease or renewal thereof, together with a completed information sheet with respect to the lessee in a form to be established by the Board of Directors, shall be delivered to the Board of Directors at least one week prior to the lessee's occupancy of the Unit thereunder; (ii) such lease shall be subject to and consistent with the provisions of the Condominium Instruments, as the same may be amended from time to time, and the Rules and Regulations of the Condominium; (iii) such lease shall prohibit the lessee from subleasing, assigning, or otherwise conveying the lessee's interest and rights thereunder to any other person or entity; and (iv) the Board of Directors has the power to terminate such lease, to bring summary proceedings to evict the tenant in the name of the lessor thereunder and/or to sue for specific performance of the lease provisions, in the event of a default by the tenant in the performance of such lease. The Board of Directors may establish a standard form lease addendum to be used by all Unit Owners. The restrictions of this paragraph shall not apply to any mortgagee who comes into possession of a Unit pursuant to a foreclosure sale, judicial sale, or transfer or conveyance in lieu of foreclosure. This paragraph shall not be construed to prohibit short-term apartment sitting.

9. Limitation of Association Liabilities

The Association shall not be liable to any Unit Owner or occupant of any Unit, in their capacity as owner or occupant, for any failure of water supply or other services to be obtained by the Association or paid for out of the Common Expense funds, or for injury or damage to person or property caused by the elements of nature or, in the absence of negligence, resulting from electricity, water, sewage, snow, or ice which may leak or flow from any portion of the Common Elements or from any wire, pipe, drain, conduit, appliance, or equipment. The Association shall not be liable to the owner of any Unit or occupant of any Unit, in their capacity as owner or occupant, for loss or damage by theft or otherwise, of articles which may be stored upon any of the Common Elements. No diminution or abatement of Common Expense assessments shall be claimed or allowed for inconvenience or discomfort arising (a) from the making of repairs or improvements to the Common Elements or to any Unit' (b) from any action taken by the Association to comply with any law or other governmental authority; or (c) for the dispossession of a Unit Owner or occupant of any Unit by reason of fire or other casualty, except to the extent covered by insurance.

10. Right of Access

Each Unit Owner grants a right of access to his/her Unit to the Board of Directors, the Managing Agent, and to any other person authorized by the Board of Directors for the purpose of making inspections and correcting any condition originating or existing in his/her Unit and threatening another Unit or a Common Element, or for the purpose of performing installations, alterations, or repairs to the mechanical (including all parts of central heating system) or electrical services or other Common Elements in his/her Unit or elsewhere in the Building, or to correct any condition which violates the provisions of any mortgage covering another Unit, provided that requests for entry are made in advance and that any such entry is at a time reasonably convenient to the Unit Owner. In case of an emergency, such right or entry shall be immediate whether the Unit Owner is present at the time or not.

11. Rules and Regulations

Rules and Regulations concerning the operation and use of the Condominium may be promulgated and amended from time to time by the Board of Directors, provided that such Rules and Regulations are not contrary to or inconsistent with the Condominium Act, the Declaration or the Bylaws. Copies of the Rules and Regulations shall be furnished by the Board of Directors to each Owner prior to the time when the same shall become effective.

12. Information to be Furnished Upon Unit Resale

A. The Board of Directors or a duly designated agent or the Managing Agent shall upon written request of any Unit Owner or purchaser of a Unit furnish to said Unit Owner of purchaser , within ten (10) days of receipt of a request, the following information:

(i) Statement regarding any unpaid Assessments.

(ii) Statement concerning any rights of first refusal or other restraints on free alienability.

(iii) Statement of any capital expenditures anticipated by the Association withing the current or succeeding two fiscal years.

(iv) Statement of the status and amount of any reserves for capital expenditures, contingencies and improvements, and any portion of such reserves earmarked for any specified project by the Board of Directors.

(v) A copy of the statement of financial condition of the Association for the then most recent fiscal year for which such statement is available and the current operating budget, if any.

(vi) Statement of the status of any pending suits or any judgements to which the Association is a party.

(vii) Statement setting forth what insurance coverage is provided for all Unit Owners by the Association and a statement whether such coverage includes public liability, loss or damage, or fire and extended coverage insurance with respect to the Unit and its contents.

(viii) Statement that any improvements or alterations made to the Unit, or the Limited Common Elements assigned thereto, by the prior Unit Owner are not in violation of the Condominium Instruments.

(ix) Statement of the remaining term of any leasehold estate affecting the Condominium or the Condominium Unit and the provisions regarding any extension or renewal thereof; and

(x) The date of issuance of the certificate.

B. The Board of Directors may impose a reasonable fee to furnish all the information required in accordance with Paragraph A hereof, and payment thereof shall be a prerequisite to the issuance of any such statement.

C. In the event that a Unit Owner contracts to sell his/her Unit, the Unit Owner shall notify the Board of Directors or Managing Agent of the pending sale and the approximate date that the Unit Owner intends to move out of his/her Unit.