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A service of

Condominium Bylaws

EXHIBIT 'A'

CONDOMINIUM BY-LAWS

 

EARHART VILLAGE HOMES

 

Article I.

Association of Co-Owners

 

Section 1. Earhart Village Homes, a condominium, located

in the City of Ann Arbor, County of Washtenaw, and State of

Michigan, shall be administered by an association of co-owners

which shall be a non-profit corporation, hereinafter called the

Association, organized under the applicable laws of the State

of Michigan and responsible for the management, maintenance,

operation, and administration of the common elements,

easements and affairs of the Condominium in accordance with

the Master Deed, these By-laws, the Articles of Incorporation,

the Association By-laws, the duly adopted Rules and Regulations

of the Association, and the laws of the State of Michigan.

All co-owners in the Condominium and all persons using or

entering upon or acquiring any interest in any condominium unit

therein or the common elements thereof shall be subject to the

provisions and terms set forth in the aforesaid Condominium

documents.

 

Section 2. Membership in the Association and voting by

members of the Association shall be in accordance with the

following provisions:

 

(a) Each co-owner shall be a member of the Association

and no other person or entity shall be entitled o membership.

 

(b) The share of a co-owner in the funds and assets of the

Association cannot be assigned, pledged or transferred

in any manner except as an appurtenance to his/her

condominium unit in the Condominium.

 

(c) Except as limited by these By-Laws, each co-owner who

is current in the payment of his/her assessments shall be

entitled to one vote for each condominium unit owned

when voting by number and one vote, the value of which

shall equal the total of the percentage allocated to the

condominium unit owned by such co-owner as set forth

in Article V of the Master Deed, when voting by value.

Voting shall be by value except in those instances when

voting is specifically required to be both by value and by

number.

 

(d) No co-owner shall be entitled to vote at any meeting of

the Association until evidence of ownership of a condominium

unit in the Condominium has been presented to

the Association, such as a copy of a recorded deed,

signed land contract or title insurance policy. A land

contract vendee shall be considered the co-owner for

voting purposes. The vote of each co-owner may only be

cast by the individual representative designated by such

co-owner in the notice required in subparagraph (e)

below or by a proxy given by such individual representative.

 

(e) Each co-owner shall file a written notice with the

Association designating the individual representative

who shall vote at meetings of the Association and

receive all notices and other communications from the

Association on behalf of such co-owner. Such notice

shall state the name and address of the individual

representative designated, number(s) of the condominium

unit(s) owned by the co-owner, and the name

and address of the co-owner. Such notice shall be

signed and dated by the co-owner. The individual representative

designate maybe changed by the co-owner

at any time by filing a new notice in the manner herein

provided.

 

(f) Each co-owner shall notify the Association in writing of

the name and address of the mortgage holder for the

unit, as well as when there is no longer a mortgage on the

unit.

 

(g) There shall be annual meetings of the members of the

Association. Other meetings may be provided for in the

By-Laws of the Association. Notice of time, place and

subject matter of all meetings, as provided in the corporate

By-Laws of the Association, shall be given to each

co-owner by mail or delivery to each individual representative

designated by the respective co-owners, at least

ten (10) days, but not more than sixty (60) days in

advance.

 

(h) The presence in person or by proxy of twenty-five

percent (25%) in number and in value of the co-owners

qualified to vote shall constitute a quorum for holding a

meeting of the members of the Association, except for

voting on questions specifically set forth herein to require

a greater quorum. The written vote of any person,

furnished at or prior to any duly called meeting at which

meeting said 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.

 

(i) Votes may be cast in person or by proxy or by a writing

duly signed by the designated voting representative not

present at a given meeting in person or by proxy. Proxies

and any written votes 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.

 

(j) A majority, except where otherwise provided herein,

shall consist of more than fifty percent (50%) in value of

those qualified to vote and present in person or by proxy

(or written vote, if applicable) at a given meeting of the

members of the Association. Whenever provided specifically herein,

a majority may be required to exceed the

simple majority hereinabove set forth and may be required

to be one of both number and value of designated

voting representatives present in person or by proxy, or

by written ballot, if applicable, at a given meeting of the 

members of the Association.

 

(k) Other provisions as to voting by members not inconsistent with

the provisions herein contained may be set

forth in the Association By-Laws.

 

Section 3. The Association shall keep current copies of the

approved Master Deed, all amendments to the Master Deed

and other Condominium documents for the Condominium, and

detailed books of account showing all expenditures and receipts

of administration which shall specify 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.

Such Condominium documents shall be available

during reasonable working hours for inspection by co-owners,

prospective purchasers and their mortgage holders of condominium

units in the condominium project. Such accounts shall

be open for inspection by the co-owners during reasonable

working hours, and the books and records shall be audited at

least once each year by qualified independent auditors; provided,

however, that such auditors need not be certified public

accountants nor does such audit need to be a certified audit. The

cost of such professional accounting assistance shall be an

expense of administration. Income, expenses and position

statements shall be prepared at least once annually and distributed

to each co-owner, the contents of which shall be defined

by the Association. Any institutional holder of a first mortgage

lien on any unit in the Condominium shall be entitled, upon

request, to inspect the books and records of the Condominium

during normal business hours and to receive the annual audited

financial statement of the Condominium referred to above within

ninety (90) days following the end of any fiscal year thereof. If

an audited statement is not available, any holder of a first

mortgage on a unit in the Condominium shall be allowed to have

audited statement prepared at its own expense.

 

Section 4. The affairs of the Association shall be governed

by a Board of Directors, all of whom shall serve without

compensation and who must be members of the Association.

The number, terms of office, manner of election, removal and

replacement, meetings, quorum and voting requirements, and

other provisions of or relating to directors not inconsistent with

the following shall be provided by the Association By-Laws.

 

(a) The Board of Directors shall have all powers and duties

necessary for the administration of the affairs of the Association

and may do all acts and things that are not prohibited

by the Condominium documents or required thereby to be

exercised and done by the co-owners. In addition to the

foregoing duties imposed by these By-Laws or any further

duties which may be imposed by resolution of the members

of the Association or which may be set forth in the

Association By-laws, the Board of Directors shall be responsible

specifically for the following:

 

(1) To manage and administer the affairs and maintenance

of the Condominium and the common elements.

 

(2) To levy, collect and disburse assessments against and

from the members of the Association and to use the

proceeds thereof for the purposes of the Association, to

enforce assessments through liens and foreclosure

proceedings when appropriate and to impose late charges

for nonpayment of said assessments.

 

(3) To carry insurance and collect and allocate the proceeds.

 

(4) To rebuild improvements to common elements after

casualty.

 

(5) To contract for and employ persons, firms, corporations,

or other agents to assist in the management,

operation, maintenance, and administration of the Condominium.

 

(6) To acquire, maintain and improve and to buy, sell,

convey, assign, mortgage, or lease any real or personal

property (including any unit in the Condominium, easements,

rights-of-way, and licenses) on behalf of the

Association in furtherance of any of the purposes of the

Association, including (but without limitation) the lease

or purchase of any unit in the Condominium for use by

a resident manager.

 

(7) To borrow money and issue evidences of indebtedness

in furtherance of any and all of Association business

purposes, and to secure the same by mortgage, pledge

or other lien on property owned by the Association;

provided, however, that any such action shall also be

approved by the affirmative vote of sixty percent (60%)

of all of the members of the Association in number and

in value.

 

(8) To make reasonable rules and regulations governing

the use and enjoyment of the Condominium by co-owners

and their tenants, guests, employees. invitees,

families and pets and to enforce such rules and regulations

by all legal methods, including, without limitation,

imposing fines and late payment charges, or instituting

eviction or legal proceedings.

 

(9) To enforce the provisions of the Condominium documents.

 

(10) To make rules and regulations and/or to enter into

agreements with institutional lenders, the purposes of

which are to enable obtaining mortgage loans by unit co.

owners which are acceptable for purchase by the Federal

Home Loan Mortgage Corporation, the Federal

National Mortgage Association, the Government National

Mortgage Association, and/or any other agency of

the Federal government or the State of Michigan.

 

(11) To levy, collect and disburse fines against and from

the members of the Association after notice and hearing

thereon and to use the proceeds thereof for the purposes

of the Association.

 

(12) To establish such committees as it deems necessary,

convenient or desirable and to appoint persons thereto

for the purpose of implementing the administration of the

Condominium, and to delegate to such committees any

functions or responsibilities which are not by law or the

Condominium documents required to be performed by

the Board.

 

(13) To assert. defend or settle claims on behalf of all co-owners

in connection with the common elements of the

Condominium. The Board shall provide at least a ten

(10)-day written notice to all co-owners on actions

proposed by the Board with regard thereto.

 

(14) To do anything required of or permitted to it as administrator

of the Condominium by the Condominium By-

Laws or by the Michigan Condominium Act. as amended.

 

(b) The Board of Directors may employ for the Association a

professional management agent, at reasonable compensation

established by the Board. to perform such duties and

services as the Board shall authorize. including, but not

limited to, the duties listed in Section 4(a) of this Article I,

and the Board may delegate to such management agent

any other duties or powers which are not by law or by the

Condominium documents required to be performed by or

have the approval of the Board of Directors or the members

of the Association. Any agreement or contract for professional

management of the Condominium shall provide that

such management contract may be terminated by either

party without cause or payment of a termination fee on thirty

(30) days' written notice and that the term thereof shall not

exceed one (1) year, renewable by agreement of the parties

for successive one-year periods.

 

(c) The Board of Directors shall have the right to regulate and

administer the recreational area and the use thereof by the

co-owners. The Board shall also have the right, in its

discretion, to permit the use of all of the facilities contained

in the recreational area by the residents of a maximum of

fifty (50) of the single-family residential dwellings located in

Earhart Subdivision outside of the Condominium. Such

usage shall be conditioned upon the payment of a reasonable

charge for the use of such facilities by such nonresidents

and the charges and other conditions of such use

shall be solely within the discretion of the Board. The right

to use the recreational facilities by such non-residents may

be granted on a temporary year-to-year basis only, renewable

at the pleasure of the Board, and no Board of Directors

of the Association shall, while in office, have the power to

grant such use for any period exceeding one year at a time.

This paragraph shall in no way be construed as an easement

or license in favor of any non-residents and any Board

of Directors may temporarily or permanently discontinue

use of the recreational facilities by non-residents as described

above.

 

Section 5. The Association By-Laws shall provide the

designation, number, terms of office, qualifications, manner of

election, duties, removal, and replacement of the officers of the

Association, and may contain any other provisions pertinent to

officers of the Association in furtherance of the provisions and

purposes of the Condominium documents and not inconsistent 

therewith. Officers may be compensated, but only upon the

affirmative vote of sixty percent (60%) of all co-owners in

number and in value.

 

Section 6. Every director, officer, committee member,

employee, and agent of the Association shall be indemnified by

the Association against all expenses and liabilities, including

counsel fees, reasonably incurred by or imposed upon him/her

in connection with any proceeding to which he/she may be a

party, or in which he/she may become involved, by reason of his/

her being or having been a director, officer, committee member,

employee, and agent of the Association, whether or not he/she

is a director, officer, committee member, employee, or agent at

the time such expenses are incurred, except in such cases

wherein the director, officer, committee member, employee,

and agent is adjudged guilty of willful misfeasance or

malfeasance, willful and wanton misconduct or gross negligence in the

performance of his/her duties; provided, that, in the event of any

claim for reimbursement or indemnification hereunder based

upon a settlement by the director, officer, committee member,

employee, or agent seeking such reimbursement or indemnification 

the indemnification herein shall only apply if the Board

of Directors (with the director seeking reimbursement abstaining)

approves such settlement and reimbursement as being in

the best interests of the Association, the foregoing right of

indemnification shall be in addition to and not exclusive of all

other rights to which such director, officer, committee member.

employee, or agent may be entitled. Ten (10) days written notice

of any proposed action by the Association to indemnify a

director, officer, committee member, employee, or agent shall

be given to all co-owners. Further. the Board of Directors is

authorized to carry directors' and officers' liability insurance

covering acts of the directors, officers, committee members,

employees, or agents of the Association in such amounts as it

shall deem appropriate.

 

Article II.

Assessments

 

Section 1.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 personal property taxes based thereon shall be

treated as administrative expenses.

 

Section 2. All costs incurred by the Association in satisfaction of any

liability arising within, caused by or in connection with

the common elements or the administration of the Condominium

shall be expenses of administration within the meaning

of Public Act 59 of 1978, as amended, and all sums received as

proceeds of or pursuant to any policy of insurance carried by the

Association securing the interests of the co-owners against

liabilities or losses arising within, caused by or in connection

with the common elements or the administration of the Condominium

shall be receipts of administration.

 

Section 3. Assessments shall be determined in accordance

with the following provisions:

 

(a) The Board of Directors of the Association shall establish an

annual budget in advance for each fiscal year and such

budget shall project all expenses for the forthcoming year

which may be required for the proper operation, management

and maintenance of the Condominium, including a

reasonable allowance for contingencies and reserves. An

adequate reserve fund for maintenance, major repair and

replacement of those common elements that must be

replaced on a periodic basis must be established in the

budget and must be funded by regular monthly payments

as set forth in Section 4 below rather than by special

assessments. At a minimum, the reserve fund shall be

equal to ten percent (10%) of the current annual budget on

a noncumulative basis. Since the minimum standard required

by this subparagraph may prove to be inadequate for

this particular Condominium, the Board of Directors should

carefully analyze the Condominium to determine if aggregate

amount should be set aside or if additional reserve funds

should be established for other purposes from time to time.

In the event of such a determination, the Board of Directors

may establish such greater or other reserves without co-owner

approval. Upon adoption of the annual budget by the

Board of Directors, copies of the budget shall be delivered

to each co-owner and the assessment for said year shall be

established. The delivery of a copy of the budget to each co-owner

shall not affect the liability of any co-owner for any

existing or future assessments. Should the Board of Directors

at any time determine, in the sole discretion of the

Board of Directors, (1) that the assessments levied are or

may prove to be insufficient to pay the costs of operation,

maintenance and management of the Condominium, (2) to

provide replacements of existing common elements, (3) to

provide additions to the common elements not to exceed

$10,000.00 annually for the entire Condominium (adjusted

for increases in the Consumers Price Index used by the

United States Department of Labor, Bureau of Vital Statistics,

Metropolitan Detroit area, since the date of recording

of the initial Master Deed), or (4) in the event of emergencies,

the Board of Directors shall have the authority to

increase the general assessment or to levy such additional

assessment or assessments as it shall deem to be necessary.

The Board of Directors also shall have the authority,

without co-owner consent, to levy assessments pursuant to

the provisions of Article V, Section 5. The discretionary

authority to levy assessments pursuant to this subparagraph

shall rest solely with the Board of Directors for the benefit

of the Association, and shall not be enforceable by any

creditors of the Association or of the members.

 

(b) Other special assessments may be made by the Board of

Directors from time to time and approved by the co-owners

to meet other needs or requirements of the Association,

including, but not limited to, (1) assessments for additions

to the common elements of a cost exceeding $10,000.00

annually for the Condominium (adjusted for increases in the

Consumers Price Index used by the United States Department

of Labor, Bureau of Vital Statistics, Metropolitan

Detroit area, since the date of recording of the initial Master

Deed), (2) assessments to purchase a condominium unit

upon foreclosure of the lien for assessments described in

Section 6 below, or (3) assessments for any other appropriate

purpose not elsewhere described. Special assessments

referred to in this subparagraph (b) shall not be levied

without the prior approval of at least sixty percent (60%) of

all co-owners in value and in number. The authority to levy

assessments pursuant to this subparagraph is solely for the

benefit of the Association and the members and shall not be

enforceable by any creditors of the Association or of the

members.

 

Section 4. Unless otherwise provided herein or in the

Master Deed, assessments levied against the co-owners to

cover administrative expenses, that affect each condominium

unit equally shall be apportioned equally among and paid by the

co-owners.

 

(a) Common expenses associated with the maintenance,

repair, renovation, restoration, or replacement of a limited

common element shall be specially assessed against the

condominium unit to which that limited common element

was assigned at the time the expenses were incurred. If the

limited common element involved was assigned to more

than one condominium unit, the expenses shall be specially

assessed against each of the condominium units equally so

that the total of the special assessments equals the total of

the expenses.

 

(b) Any other unusual common expenses benefiting less than

all of the units, or any expenses incurred as a result of the

conduct of less than all those entitled to occupy the Condominium,

or their tenants or invitees, shall be specifically

assessed against the unit or units involved, in accordance

with such reasonable rules and regulations as shall be

adopted by the Board of Directors of the Association.

 

(c) Annual assessments determined in accordance with Article

II, Section 3(a) above shall be payable by co-owners in

twelve (12) equal monthly installments, commencing with

acceptance of a deed to a condominium unit or with

acquisition of title to a condominium unit by any other

means.

 

(d) 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. If a delinquency occurs,

the Board of Directors may accelerate the due date of the

balance of the unpaid annual assessment.

 

(e) Assessments in default shall bear interest at the rate of not

less than seven percent (7%) per annum, plus an additional

interest rate surcharge as the Board of Directors shall

approve, until paid in full. The interest rate and interest rate

surcharge combined applying to delinquent accounts shall

not exceed the limit set by usury laws of the State of

Michigan. The Board of Directors shall also adopt uniform

late payment charges.

 

(f) Each co-owner (whether one or more persons) shall be and

remain personally liable for the payment of all assessments

pertinent to the condominium unit which may be levied

while the co-owner is the owner thereof. A purchaser of a

unit shall acquire the unit subject to any unpaid assessments

against it and shall become personally liable there for.

A co-owner selling a unit shall not be entitled to any

refund whatsoever from the Association with respect to any

account, reserve or other asset of the Association.

 

(g) Monthly assessments not received by the tenth (10th)

calendar day of each month shall be subject to a late charge

of fifteen ($15.00) Dollars. The late charge may be increased

by the Board of Directors in its sole discretion,

except such increase(s) shall not exceed Ten (10%) Percent

per annum of the prior year's monthly late charge on

an increasing basis beginning in 1981. There shall be only

one late charge for each monthly assessment. Any additional

monthly delinquencies will also be assessed a late

charge in the same amount.

 

(h) All assessments received shall be first applied to the oldest

delinquency.

 

Section 5. Co-owners may not exempt themselves from

Liability for their contribution toward administrative expenses by

waiver of use or enjoyment of any of the common elements or

by the abandonment of their condominium unit.

 

Section 6. In addition to any other remedies available to it.

the Association may enforce collection of delinquent assessments

by a suit at law for a money judgment or by foreclosure

of the statutory lien that secures payment of assessments. Each

co-owner, and every other person who from time to time has any

interest in the Condominium, shall be deemed to have granted

to the Association the unqualified right to elect to foreclose such

lien, either by judicial action or by advertisement.

 

(a) The provisions of Michigan law pertaining to foreclosure of

mortgages by court action and by advertisement, as the

same may be amended from time to time, are incorporated

by reference for the purposes of establishing the alternative

procedures to be followed in lien foreclosure actions and

the rights and obligations of the parties to such actions.

 

(b) Each co-owner in the Condominium 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 such sale in accordance with the

priorities established by Michigan law.

 

(c) The co-owner of a unit in the Condominium acknowledges

that at the time of acquiring title, to such unit he/she was

notified of the provisions of this section and that he/she

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.

 

(d) Neither a court foreclosure action nor a lawsuit for money

judgment shall be commenced, or any notice of foreclosure

by advertisement be published, until the expiration of ten

(10) days after mailing, by ordinary mail addressed to the

delinquent co-owner at his/her last known address and/or

to the representative designated in the written notice required

by Article 12(e) to be filed with the Association, of a

written notice that one 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 hereunder if the default is not cured within ten (10)

days after the date of mailing.

 

(e) The written notice shall be accompanied by an affidavit of

an authorized representative of the Association that sets

forth (i) the representative's capacity to make the affidavit,

(ii) the statutory and other authority for the lien, (iii) the

amount outstanding, (iv) the legal description of the subject

unit and (v) the name(s) of the co-owner(s) of record.

 

(f) The affidavit shall be recorded at the Register of Deeds of

Washtenaw County prior to the commencement of any

foreclosure proceeding. It need not have been recorded as

of the date of mailing.

 

(g) If the delinquency is not cured within ten (10) days, the

Association may take remedial action which it elects or is

permitted under Michigan law. If the Association elects to

foreclose the lien by advertisement, the Association shall

notify the representative that he/she may request a court

hearing by bringing suit against the Association.

 

(h) The expenses incurred in collecting unpaid assessments,

including interest, costs, actual attorneys' fees (not limited

to statutory fees), and advances for taxes or other liens paid

by the Association to protect its lien shall be charged to the

co-owner in default and shall be secured by the lien on his/her

unit.

 

(i) In the event that a co-owner defaults on any installment of the

annual assessment the Association shall have the right to

declare all unpaid installments of the annual assessment

for the fiscal year immediately due and payable. The

Association also may discontinue the furnishing of any

utilities or other services to a co-owner in default upon ten

(10) days' written notice to such co-owner of its intention

do so. A co-owner in default shall not be entitled to utilize

any of the general common elements of the Condominium,

except as shall be necessary for purposes of ingress to and

egress from his/her unit, and shall not be entitled to vote at

any meeting of the Association, and his/her percentage of

value shall not be taken into consideration when determining

the quorum requirements for such meetings, so long as

such default continues.

 

(j) In a court foreclosure action, a receiver may be appointed to

collect a reasonable rental for the unit from the co-owner or

any persons claiming under him/her and, if the unit is not

occupied, to lease the unit and collect and apply the rental

there from to any delinquency owed to the Association. All

of these remedies shall be cumulative and not alternative

and shall not preclude the Association from exercising such

other remedies as may be available at law or in equity.

 

Upon the sale or conveyance of a condominium unit, all

unpaid assessments against the condominium unit shall be paid

out of the sale price or by the purchaser before any other

assessments or charges, except the following:

 

(a) Amounts due the State, or any subdivision of the State, or

any municipality for taxes and special assessments due

and unpaid on the condominium unit.

 

(b) Payments due under a first mortgage which has priority.

 

(c) A purchaser/grantee is entitled to a written statement from

the Association setting forth the amount of unpaid assessments

against the seller/grantor. The purchaser/grantee

is not liable for, nor is the condominium unit conveyed

subject to a lien for any unpaid assessments against the

seller/grantor for more than the amount set forth in the

written statement. As provided in the Act, unless the

purchaser/grantee requests a written statement from the

Association at least five (5) days before the sale, the

purchaser/grantee shall be liable for unpaid assessments

against the condominium unit with interest, costs and actual

attorney fees incurred in the collection.

 

Unpaid sums assessed to a co-owner by the Association

constitute a lien upon the unit or units in the project owned by

the co-owner at the time of the assessment superior to other

liens except tax liens on the unit in favor of any State or Federal

taxing authority and sums paid on a first mortgage of record.

However, past due assessments which are evidenced by a

notice of lien, recorded according to the Act, have priority over

a subsequently recorded first mortgage. The lien upon each unit

owned by a co-owner shall be in the amount assessed against

the unit plus a proportionate share of the total of all other unpaid

assessments due on units no longer owned by the co-owner, but

which became due while the co-owner had title to the units. The

lien may be foreclosed by court action or by advertisement by

the Association in the name of the Condominium on behalf of

other co-owners. 

 

Section 7. Special assessments and property taxes shall

be assessed against the individual condominium units identified

as units on the Condominium Subdivision Plan and not on the

total property of the Condominium. Special assessments and

property taxes in any year in which the property existed as an

established Condominium on the tax day shall be assessed

against the individual condominium unit. Condominium units

all be described for such purposes by reference to the

dominium unit number on the Condominium Subdivision

Plan together with the liber and page of the county records in

which the approved Master Deed is recorded. Assessments for

subsequent real property improvements to a specific condominium unit shall be

assessed to that condominium unit description

only. For property tax and special assessment purposes,

each condominium unit shall be treated as a separate single unit

of real property and shall not be combined with any other unit(s),

and no assessment of any fractional part shall be made, nor

shall any division or split of the assessment or taxes of any

single condominium unit be made notwithstanding separate or

common ownership.

 

Section 8. A construction lien concerning a condominium

arising under Act No. 497 of the Public Acts of 1980, being

Section 570.1101 to 570.1305 of the Michigan Compiled Laws,

is subject to the following limitations:

 

(a) Except as otherwise provided in this section, a construction

lien for an improvement furnished to a condominium unit or

to a limited common element shall attach only to the

condominium unit to which the improvement was furnished.

 

(b) A construction lien for an improvement authorized by the

Association shall attach to each condominium unit only to

the proportional extent that the co-owner of the condominium unit

is required to contribute to the expenses of

administration, as provided by the Condominium documents.

 

(c) A construction lien shall not arise or attach to a condominium

unit for work performed on the common elements

if the work was not contracted for by the Association.

 

Section 9. Any co-owner bringing an unsuccessful lawsuit

against the Association and/or its Board of Director for the

administration of the affairs of the Association, found to be

consistent with the provisions contained in the Condominium

documents, shall be charged by the Board of Directors for all

expenses incurred by the Association. Such expenses may be

collected by the Association in the same manner as an assessment.

 

Article III.

Arbitration

 

Section 1. Disputes, claims or grievances arising out of or

relating to the interpretation or application of the Condominium

documents or the management agreement, if any, or any

disputes, claims or grievances arising among or between co-owners

or between co-owners and the Association or with a

management company shall, upon the election and written

consent of the parties involved, including the Association, be

submitted to arbitration. The parties thereto shall accept the

arbitrator's decision as final and binding, provided that no

question affecting the claim of title of any person to any fee or

life state in real estate is involved. The Commercial Arbitration

Rules of the American Arbitration Association, as amended and

in effect from time to time hereafter, shall be applicable to any

such arbitration.

 

Section 2. In the absence of the decision and written

consent of the parties to abide by arbitration, no co-owner or the

Association shall be precluded from petitioning the courts to

resolve any such disputes, claims or grievances.

 

Section 3. Election by co-owners or the Association to

Submit any such dispute, claim or grievance to arbitration shall

preclude such parties from litigating such dispute, claim or

grievance in the courts. 

 

Article IV.

Insurance

 

Section 1. The Association shall carry property coverage

For all risks of direct physical loss and liability insurance, fidelity

Coverage and worker's compensation insurance, if applicable,

pertinent to the ownership, use and maintenance of the common

elements and condominium units of the Condominium.

Such insurance, other than title insurance, shall be carried and

administered in accordance with the following provisions:

 

(a) All such insurance shal1 be purchased by the Association for

the benefit of the Association, co-owners and their mortgage

holders, as their interests may appear. Provision shall

be made for certificates to be issued to the mortgage

holders of co-owners. Each co-owner may obtain additional

insurance coverage at his/her own expense on the unit. It

shall be the co-owner's responsibility to obtain insurance

coverage for personal property located within the unit or

elsewhere in the Condominium, for improvements and

betterments to the unit and for alternative living expenses

in event of fire or other catastrophe. This shall include

insurance on limited common elements, including windows,

screens and doors appurtenant to the condominium

unit. The Association shall have absolutely no responsibility

for obtaining such coverages. The Association and all

co-owners shall use their best efforts to see that all property

and liability insurance carried by the Association or any co-owner

shall contain appropriate provisions whereby the

insurer waives its rights of subrogation as to any claims

against any co-owner or the Association, and such insurance

shall contain a severability of interest endorsement.

 

(b) All common elements and condominium units of the Condo-

minimum shall be insured against all risks of direct physical

loss in an amount equal to the maximum insurable replacement value,

excluding foundation and excavation costs, as

determined annually by the Board of Directors of the

Association. Such coverage shall also extend to the

unpainted surface of interior walls within any condominium

unit and include the pipes, wires, conduits, and ducts

contained therein and shall further include all fixtures,

equipment and trim within a condominium unit which were

furnished with the unit as standard items in accordance with

the plans and specifications (or such replacements as do

not exceed the cost of such standard items).  Any improvements made by

a co-owner within a unit shall be covered by

insurance obtained by and at the expense of the co-owner;

provided, however, that, if the Association elects to include

such improvements under its insurance coverage, any

additional premium cost to the Association shall be assessed

and borne solely by the co-owner and collected as

a part of or in addition to the assessments against the co-owner under

Article II.

 

(c) All premiums for insurance purchased by the Association

pursuant to these By-Laws shall be administrative expenses

and collected as a part of or in addition to the

assessments against said co-owner under Article II.

 

(d) Proceeds of all insurance policies owned by the Association

shall be received by the Association, held in a separate

account and distributed to the Association, the co-owners

and their mortgage holders, as their interests may appear.

However. whenever repair or reconstruction of the Condominium

shall be required as provided in Article V of these

By-Laws, the proceeds of any insurance received by the

Association as a result of that loss shall be applied to its

repair or reconstruction. In no event shall hazard insurance

proceeds be used for any other purpose unless two-thirds

(2/3) of all of the institutional holders of first mortgages on

units in the Condominium have given their prior written

consent.

 

(e) On any claim of the above-mentioned policies which is

subject to a deductible amount, the deductible amount shall

be paid by the co-owner of the unit which is damaged or

which unit has appurtenant to it the damaged limited

common element. In the event that more than one unit is

damaged, then the deductible amount shall be apportioned

between and paid by the co-owners of units which are

damaged or which units have appurtenant to them the

damaged limited common element, based upon a fraction,

the numerator of which is the dollar amount of the damage

done to a particular unit, and the denominator of which is the

total dollar amount of damage done to all units from one

specific incident. If the damage is to a limited common

element appurtenant to more than one unit, then the

deductible amount shall be paid proportionately by the

appurtenant units based upon a fraction, the numerator of

which is the percentage of value assigned to a particular

unit, and the denominator of which is the sum of the

percentages of value assigned to those units appurtenant

to the damaged limited common element. In the case of

damage to a general common element, the deductible shall

be paid by the Association.

 

Section 2. Each co-owner of a unit in the Condominium,

shall be deemed to appoint the Association as his/her true and

lawful attorney-in-fact to act in connection with all matters

concerning the maintenance of property insurance, liability

insurance, fidelity coverage, worker's compensation insurance,

if applicable, with the insurance company for the Condominium.

The Association, as said attorney, shall have full power and 

authority to purchase and maintain such insurance, to collect

and remit premiums, to collect proceeds, and to distribute the

same to the Association, the co-owners and their respective

mortgage holders, as their interests may appear (subject always

to the Condominium documents), to execute releases of

liability, and to execute all documents and do all things on behalf

of the co-owner and the Condominium as shall be necessary or

convenient to accomplish the foregoing.

 

Article V.

Reconstruction or Repair

 

Section 1.  If any part of the condominium property shall be

damaged, the determination of whether or not it shall be

reconstructed or repaired shall be made in the following manner:

 

(a) If the damaged property is a common element or condominium

unit, the property shall be rebuilt or repaired if any

condominium unit in the Condominium is tenantable, unless

it is determined by a unanimous vote of all of the co-owners

in the Condominium that the Condominium shall be

terminated and each institutional holder of a first mortgage 

lien on any unit in the Condominium has given its prior

written approval of such termination.

 

(b) If the Condominium is so damaged that no condominium

unit is tenantable, and if each institutional holder of a first

mortgage lien on any unit in the Condominium has given its

prior written approval of the termination of the Condominium,

the damaged property shall not be rebuilt and the

Condominium shall be terminated, unless two-thirds (2/3)

or more of the co-owners in value and in number agree to

reconstruction by vote or in writing within ninety (90) days

after the destruction.

 

Section 2. Any such reconstruction or repair shall be

substantially in accordance with the Master Deed and the plans

and specifications for the Condominium to a condition as

comparable as possible to the condition existing prior to damage

unless the co-owners shall unanimously decide otherwise.

 

Section 3. If the damage is only to a part of a condominium

unit which is the responsibility of a co-owner to maintain and

repair, it shall be the responsibility of the co-owner to repair such

damage in accordance with Section 4. In all other cases, the

responsibility for reconstruction and repair shall be that of the

Association. In the event that a co-owner does not commence

making repairs as required within 30 days of the occurrence of

the damage and diligently pursue such repairs to completion,

the Board of Directors may make such repairs. The costs thereof

shall constitute an additional assessment against such co-owner,

due and enforceable as provided in these By-Laws for

other assessments.

 

Section 4. Each co-owner shall be responsible for the

reconstruction, repair and maintenance of the interior of his/her

condominium unit, including, but not limited to, floor coverings,

wall coverings, window shades, draperies. interior non load bearing

walls (but not any common elements therein), walls

contained wholly within the unit, and pipes, wires, conduits, and

ducts therein (after connection with fixtures), interior trim,

furniture, light fixtures, and all appliances and equipment,

whether free standing or built-in. Damage to interior walls within

a co-owner's unit or to pipes, wires, conduits, ducts, or other

common elements therein is covered by insurance held by the

Association, and the reconstruction or repair shall be the

responsibility of the Association in accordance with Section 8.

However, any deductible amount is to be paid by the co-owner

to whom the damage occurred. If any other interior portion of a

unit is covered by insurance held by the Association for the

benefit of the co-owner, the co-owner shall be responsible for

the deductible amount, if any, and shall been titled to receive the

proceeds of insurance relative to it. If there is a mortgage

endorsement, the proceeds shall be payable to the co-owner

and the mortgage holder jointly. In the event of substantial

damage to or destruction of any unit or any part of the common.

elements, the Association shall promptly so notify each institutional

holder of a first mortgage lien on any condominium unit in

the Condominium. The Association shall have a lien for any

funds advanced on behalf of any co-owner.

 

Section 5. Every co-owner shall perform promptly all maintenance

and repair work within his/her own unit, which, if

omitted. would affect the common elements or another unit(s),

each co-owner being expressly responsible for the damages

consequently resulting from such omission. Repairs of installa-

tions within a unit such as telephone, heating and cooling

systems, water, sewer and plumbing systems, doors, lamps

and all other accessories including water faucets, tanks and

fixtures. but excluding water meters, shall be an expense of the

co-owner. Each co-owner shall reimburse the Association for

any expense incurred in repairing or replacing any common

elements damaged through the fault of the co-owner.

 

Section 6. A co-owner who desires to make a repair or

structural modification of his/her condominium unit shall first

obtain written consent from the Association. The Association

shall not give its consent if such repair or modification might

jeopardize or impair the structural soundness, safety, utility, or

harmonious appearance of the Condominium.

 

Section 7. Any person designated by the Association shall

have access to each condominium unit as necessary during

reasonable hours and upon notice to the occupant thereof for

maintenance, repair or replacement of any of the common

elements therein or accessible there from, and shall have access

to each condominium unit without notice for making

emergency repairs necessary to prevent damage to other

condominium units or the common elements, or both.

 

Section 8. An adequate reserve fund for replacement,

reconstruction and repair of the common elements must be

established and must be funded by regular monthly payments

other than by special assessments. Immediately after a casualty

causing damage to property for which the Association has

the responsibility of maintenance, repair and reconstruction, the

Association shall obtain reliable and detailed estimates of the

cost to replace the damaged property in a condition as good as

that existing before the damage. If the proceeds of insurance are

not sufficient to defray the estimated costs of required reconstruction

or repair, or if at any time during such reconstruction

or repair, or upon completion of such reconstruction or repair,

the funds for the payment of the costs are insufficient, assessments

shall be made against all co-owners for the cost of

reconstruction or repair of the damaged property in sufficient

amounts to provide funds to pay the estimated or actual cost of

repair. Any excess proceeds of insurance shall belong to the

Association.

 

Section 9. Section 133 of the Act and the following provisions

shall control upon any taking by eminent domain:

 

(a) In the event of any taking of an entire condominium unit by

eminent domain, the co-owner and his/her mortgage holder,

as their interest may appear, shall be entitled to receive the

award for such taking and, after acceptance, shall be

divested of all interest in the Condominium with regard to

such unit. In the event that any condemnation award shall

become payable to any co-owner whose condominium unit

is not wholly taken by eminent domain, then such award

shall be paid by the condemning authority to the Association

on behalf of such co-owner. If only a part of any

condominium unit is taken, the Association shall rebuild the

same as is necessary to make it habitable and remit the

balance of the condemnation proceeds pertinent to such

condominium unit to the owner and his/her mortgage

holder, as their interests may appear.

 

(b) If there is any taking of any portion of the Condominium other

than any condominium unit, the condemnation proceeds

relative to such taking shall be paid to the Association, and

the affirmative vote of at least two-thirds (2/3) of the co-

owners in number and in value shall determine whether to

rebuild, repair or replace the portion so taken or to take such

other action as they deem appropriate. If no such affirmative

vote is obtained, such condemnation proceeds shall be

remitted to the co-owners and their mortgage holders, as

their respective interests may appear, in accordance with

their respective percentages of value set forth in Article V

of the Master Deed.

 

(c) In the event the Condominium continues after taking by

eminent domain, then the remaining portion of the Condominium

shall be resurveyed and the Master Deed amended

accordingly and, if any condominium unit shall have been

taken, then Article V of the Master Deed shall also be

amended to reflect such taking and to proportionately

readjust the percentages of value of the remaining co-owners

based upon the continuing value of the Condominium

of 100%. Such amendment may be effected by an

officer of the Association duly authorized by the Board of

Directors without the necessity of execution or specific

approval by any co-owner.

 

(d) In the event any condominium unit in the Condominium or

any portion thereof, or the common elements or any portion

thereof, is made the subject matter of condemnation or

eminent domain proceedings, or is otherwise sought to be

acquired by a condemning authority, the Association shall

promptly notify each institutional holder of a first mortgage

lien on any of the units In the Condominium, provided that

the name and address of each has been provided to the

Association.

 

(e) If portions of a condominium unit are taken by eminent

domain, the court shall determine the fair market value of

the portions of the condominium unit not taken. The undivided

interest for each condominium unit in the common

elements shall be reduced in proportion to the diminution in

the fair market value of the condominium unit resulting from

the taking. The portions of undivided interest in the common

elements divested from the co-owners of a condominium

unit shall be reallocated among the other condominium

units in the Condominium in proportion to their respective

undivided interest in the common elements. A condominium

unit partially taken shall receive the reallocation in

proportion to its undivided interest as reduced by the court.

The court shall enter a decree reflecting the reallocation of

undivided interests, and the award shall include just compensation

to the co-owner of the condominium unit partially

taken for that portion of the undivided interest in the

common elements divested from the co-owner and not

revested in the co-owner pursuant to subsection (f), as well

as for that portion of the condominium unit taken by eminent

domain.

 

(f) If the taking of a portion of a condominium unit makes it

impractical to use the remaining portion of that condominium

unit for a lawful purpose permitted by the Condominium

documents, then the entire undivided interest in the

common elements appertaining to that condominium unit

shall thenceforth appertain to the remaining condominium

units, being allocated to them in proportion to their respective

undivided interests in the common elements. The

remaining portion of that condominium unit shall thence forth be

a common element. The court shall enter an order

reflecting the resulting reallocation of undivided interests,

and the award shall include just compensation to the co-owner

of the condominium unit for the co-owners entire

undivided interest in the common elements and for the

entire condominium unit.

 

(g) Votes in the Association and liability for future administrative

expenses appertaining to a condominium unit taken or

partially taken by eminent domain shall thenceforth appertain

to the remaining condominium units, being allocated to

them in proportion to the relative voting strength in the

Association. A condominium unit partially taken shall receive

a reallocation as though the voting strength in the

Association was reduced in proportion to the reduction in

the undivided interests in the common elements.

 

Section 10. The Association, acting through its Board of

Directors, may negotiate on behalf of all co-owners for any

taking of common elements and any negotiated settlement

approved by at least two-thirds (2/3) of the co-owners based

upon assigned voting rights shall be binding on all co-owners.

 

Article VI.

Restrictions

 

Section 1.

(a) No condominium unit shall be used for other than single

family residential purposes (except that persons not of the

same immediate family residing together may occupy a unit

with the written consent of the Board of Directors which

consent shall not be unreasonably withheld). A family shall

mean one person or a group of two or more persons related

by bonds of consanguinity, marriage or legal adoption or as

otherwise defined by the City of Ann Arbor Zoning Ordinance.

Upon written request, the Association may permit

reasonable exceptions to the restriction imposed by this

section.

 

(b) No more than four (4) persons may continuously occupy any

unit described as a two-bedroom unit and no more than six

(6) persons may continuously occupy any unit described

and/or utilized as a three-bedroom unit in the Master Deed.

Continuous occupancy shall mean occupancy for more

than thirty (30) nights in any calendar year.

 

Section 2.

(a) A co-owner desiring to rent or lease a condominium unit for

a period of longer than 30 consecutive days shall disclose

that fact in writing to the Association at least 10 days before

presenting a lease form to a potential lessee, and at the

same time shall supply the Association with a copy of the

exact lease form for its review for compliance with the

Condominium documents.

 

(b) No rooms in a condominium unit may be rented and no

tenant shall be permitted to occupy except under a lease,

the initial term of which is at least six (6) months unless

specifically approved in writing by the Association.

 

(c) Tenants or non co-owner occupants shall comply with all of

the conditions of the Condominium documents, and all

leases and rental agreements shall so state and shall be in

writing.

 

(d) If the Association determines that the tenant or non co-owner

occupant failed to comply with the conditions of the

Condominium documents, the Association shall take the

following action: 

 

(1) The Association shall notify the co-owner by certified

mail advising of the alleged violation by the tenant.

 

(2) The co-owner shall have fifteen (15) days after receipt of

the notice to investigate and correct the alleged breach

by the tenant or advise the Association that a violation

has not occurred.

 

(3) If, after fifteen days the Association believes that the

alleged breach is not cured or may be repeated, it may

institute on its behalf an action for both eviction against

the tenant or non co-owner occupant and simultaneously

for money damages in the same action against the co-owner

and tenant or non co-owner occupant for breach

of the conditions of the Condominium documents. The

relief set forth in this section may be by summary

proceeding. The Association may hold both the tenant

and the co-owner liable for any damages to the general

common elements caused by the co-owner or tenant in

connection with the condominium unit or Condominium.

 

(e) When a co-owner is in arrearage to the Association for

assessments, the Association may give written notice of

the arrearage to the tenant occupying a co-owner's condominium

unit under a lease or rental agreement, and the

tenant, after receiving the notice, shall deduct from rental

payments due the co-owner the arrearage and future

assessments as they fall due and pay them to the Association.

The deduction shall not be a breach of the rental

agreement or lease by the tenant. Any tenant failing to make

such payments after receiving written notice from the

Association shall become personally liable for their payment

to the Association.

 

Section 3. No co-owner shall make alterations in exterior

appearance or make structural modifications to his/her condominium

unit (including interior walls through or in which there

exist easements for support or utilities) or make changes in any

of the common elements, limited or general, without the express

advance written approval of the Board of Directors, including

(but not limited to) exterior painting or the erection of antennas,

lights, aerials, awnings, doors, shutters, or other exterior attachments

or modifications, nor shall any co-owner damage or make

modifications or attachments to common element walls between

units which in any way impairs sound-conditioning provisions.

The Board of Directors may approve only such modifications

as do not impair the soundness, safety, utility, or

harmonious appearance of the Condominium.

 

Section 4. No noxious. unlawful or offensive activity shall be carried

on in any condominium unit or upon the common

elements, limited or general, nor shall anything be done which

may be or become an annoyance or a nuisance to the co-owners

of the Condominium, nor shall any unreasonably noisy activity 

be carried on in any unit or on the common elements. No co-owner

shall do or permit anything to be done or keep or permit

to be kept in his/her condominium unit or on the common

elements anything that will increase the rate of insurance on the

Condominium.

 

Section 5. No animals, except one dog or two cats or one

dog and one cat, none of which shall exceed 35 pounds in weight

when fully grown, shall be maintained by any co-owner unless

specifically approved in writing by the Association.

 

(a) No animal may be kept or bred for any commercial purpose,

and all animals shall have such care and restraint so as not

to be obnoxious or offensive on account of noise, odor or

unsanitary conditions. No dog that barks and can be heard

on any frequent or continuing basis shall be kept in any unit

or on the common elements.

 

(b) No dog houses or unattended tethering of dogs shall be

permitted on the general common elements. No animal

may be permitted to run loose at any time upon the common

elements, and any animal shall at all times be attended by

some responsible person while on the common elements,

limited or general. No savage or dangerous animal shall be

kept, and any co-owner who causes any animal to be

brought or kept upon the premises of the Condominium

shall indemnify and hold harmless the Association for any

loss, damage or liability which the Association may sustain

as the result of the presence of such animal on the premises,

whether or not the Association has given its permission.

 

(c) Deposits of fecal matter shall be made only in those areas

specifically designated for such purpose by the Association

or the Association may require that each co-owner be

responsible for the collection and disposition of all fecal

matter deposited by any pet maintained by such co-owner.

 

(d) The Association may charge all co-owners maintaining

animals a reasonable additional assessment to be collected

in the manner provided in Article II of these By-laws

in the event that the Association determines such assessment

necessary to defray the maintenance cost to the

Association of accommodating animals within the Condominium.

 

(e) The Association may, without liability to the owner, remove

or cause to be removed any animal from the Condominium

which it determines to be in violation of the restrictions

imposed by this section.

 

(f) The Association shall have the right to require that any pets

be registered with it and may adopt such additional reason-

able rules and regulations with respect to animals as it may

deem proper. In the event of any violation of this Section,

the Board of Directors may assess fines for such violation

in accordance with these By-Laws and in accordance with

duly adopted rules and regulations of the Association.

 

Section 6. The common elements, limited or general, shall

not be used for storage of supplies, materials, personal property,

or trash or refuse of any kind, except in enclosed garages

or otherwise provided in duly adopted rules and regulations

of the Association. Trash receptacles shall be maintained in

designated areas at all times and shall not be permitted to

remain elsewhere on the common elements except for such

short periods as may be reasonably necessary to permit periodic

trash collection. The common elements shall not be used

in any way for the drying, shaking or airing of clothing or other

fabrics. Automobiles may only be washed in areas approved by

the Association. In general, no activity shall be carried on nor

condition maintained by any co-owner, either in his/her condominium

unit or upon the common elements, which spoils the

appearance of the Condominium.

 

Section 7. Sidewalks, yards, landscaped areas, driveways,

roads, parking areas, and porches shall not be obstructed in any

way nor shall they be used for purposes other than for which they

are reasonably and obviously intended. No bicycles, vehicles,

chairs, or benches may be left unattended on or about the

common elements. Use of any recreational facility in the Condominium

by children may be limited to such times and in

such manner as the Association shall determine by duly adopted

regulations. Specific play areas may be set aside for children.

 

Section 8. No house trailers, commercial vehicles, boat

trailers, boats, camping vehicles, camping trailers, snowmobiles,

snowmobile trailers, or vehicles other than motor vehicles

used for personal transportation and automobiles may be

parked or stored upon the premises of the Condominium unless

stored fully enclosed within a garage or parked in an area

specifically designated therefor by the Association. No inoperative

vehicles of any type may be brought or stored upon the

Condominium premises either temporarily or permanently.

Commercial vehicles and trucks shall not be parked in or about

the Condominium (except as above provided) unless while

making deliveries or pickups in the normal course of business.

All automobiles shall be parked overnight in assigned carports

or garages except where a co-owner maintains two cars, in

which event one car only may be parked in the duly designated

but unassigned parking spaces on the common elements. In the

event that there arises a shortage of parking spaces due to

maintenance of more than two cars by a number of co-owners,

the Association may allocate or assign parking spaces from

time to time on an equitable basis. Maintenance of more than

two cars by the occupants of any one condominium unit shall be

prohibited, except with the revocable written approval of the

Association in the event space is reasonably available. Co-owners

shall, if the Association requires, register with the

Association all cars maintained on the Condominium premises.

 

Section 9. No co-owner shall use or permit the use by any

occupant, agent, employee, invitee, guest, or family member of

any firearms, air rifles, pellet guns, B-B guns, bows and arrows,

or other similar dangerous weapons, projectiles or devices

anywhere on or about the Condominium premises.

 

Section 10. Lakes and decorative pools in the development

shall be for ornamental purposes only and shall not be used for

swimming, bathing, wading, boating, fishing, sailing, ice skating,

or other purposes.

 

Section 11. No signs or other advertising devices shall be

displayed which are visible from the exterior of a condominium

unit or on the common elements, including 'for sale' signs,

without written permission from the Association.

 

Section 12. Reasonable regulations consistent with the

Act. the Master Deed and these By-Laws concerning the use

and enjoyment of the condominium units and common elements

may be made and amended from time to time by any

Board of Directors of the Association. Copies of all such

regulations and amendments shall be furnished to all co-owners

and shall become effective thirty (30) days after mailing or

delivery to the co-owner. Any such regulation or amendment

may be revoked at any time by the affirmative vote of more than

fifty percent (50%) of all co-owners in number and in value.

 

Section 13. The Association or its duly authorized agents

shall have access to each condominium unit during reasonable

working hours and upon notice to the co-owner as may be

necessary for the maintenance, repair or replacement of any of

the common elements. The Association or its agents shall also

have access to each condominium unit at all times without

notice as may be necessary to make emergency repairs to

prevent damage to the common elements or to another condominium

unit. It shall be the responsibility of each co-owner to

provide the Association means of access to his/her condominium

unit during all periods of absence and, in the event of the

failure of such co-owner to provide means of access, the

Association may gain access in such manner as may be

reasonable under the circumstances and shall not be liable to

such co-owner for any necessary damage caused to his/her

condominium unit or for repair or replacement of any doors or

windows damaged in gaining such access.

 

Section 14. No co-owner shall perform any landscaping or

plant any trees, shrubs or flowers or place any ornamental

materials upon the common elements except in such co-

owner's patio area appurtenant solely to his/her unit wherein

landscaping and ornamentation shall be installed and maintained

by the co-owner with the approval of materials and design

by the Association. The Board of Directors may also designate

such other areas adjacent to each unit wherein a co-owner may

install approved landscaping.

 

Section 15. Use of motorized vehicles anywhere on the

condominium premises other than passenger cars, authorized

maintenance vehicles and commercial vehicles as provided in

Section 8 is prohibited. The Board of Directors may, by duly

adopted regulations, make reasonable exceptions to this section.

 

Section 16. No unsightly condition shall be maintained on

any balcony or patio or any other place which is visible from the

street or other common elements, and only furniture and equipment

consistent with ordinary balcony or patio use shall be

permitted to remain there during seasons when balconies or

patios are reasonably in use, and no furniture or equipment of

any kind shall be stored on balconies or patios during seasons

when balconies or patios are not reasonably in use.

 

Section 17. Each co-owner shall maintain his/her condominium

unit and any appurtenant limited common elements for

which he/she has maintenance responsibility in a safe, clean

and sanitary condition. Each co-owner shall also use due care

to avoid damaging any of the common elements, including, but

not limited to, the telephone, water, gas, plumbing, electrical, or

other utility conduits and systems and any other elements in a

condominium unit which are appurtenant to any other condominium

unit.

 

(a) Each co-owner shall be responsible for damages or costs

to the Association resulting from negligent damage to or

misuse of any of the common elements by a family member,

guests, tenants, agents, or invitees unless such damages

or costs are covered by insurance carried by the Association,

in which case there shall be no such responsibility

(unless reimbursement to me Association is excluded by

virtue of a deductible provision, in which case the responsible

co-owner shall bear the expense to the extent of the

deductible amount). Any costs or damages to the Association

may be assessed to and collected from the co-owner,

in the manner provided in Article II.

 

Section 18. All co-owners, their tenants and invitees, shall

maintain the heat in their units to a minimum of 50 degrees,

because of the danger of freezing water pipes that would

damage the common elements. Garage doors shall remain

closed at all times when the garages are not in active use.

 

Article VII.

Mortgages

 

Section 1. Any co-owner who mortgages his/her condominium unit

shall notify the Association of the name and address

of the mortgage holder. The Association shall maintain such

information in a book entitled 'Mortgages of Units'. At the written

request of a mortgage holder, which provides its name and

address, and the unit number or address on which it has a

mortgage, the Association shall give written notification to the

mortgage holder of any default by the co-owner of such condominium

unit which is not cured within sixty (60) days.

 

Section 2. The Association shall notify each mortgage

holder appearing in said book of the name of each company

insuring the Condominium against fire, perils covered by 'all

risk' property coverage, fidelity coverage, public liability, and

vandalism and malicious mischief, and the amount of such coverage, as

well as of any lapse, cancellation or material modification of an

insurance policy or fidelity bond maintained by the Association.

 

Section 3. The Association shall give written notification to

each mortgage holder appearing in said book at least thirty (30)

days prior to the effective date of any material change in the

Condominium documents and any change of manager (not

including change in employees of a corporate manager) of the

Condominium.

 

Section 4. Any mortgage holder which acquires title to a

condominium unit pursuant to the remedies provided in the

mortgage or foreclosure of the mortgage or deed (or assignment)

in lieu of foreclosure shall be exempt from any 'right of first

refusal' contained in the Condominium documents and shall be

free to sell or lease such unit without regard to any such

provision, although no such provision exists at the present time.

 

Section 5. Unless at least two-thirds (2/3) of the first

Mortgage holders (based upon one (1) vote for each mortgage

owned) and co-owners of the individual condominium units

have given their prior written approval, the Association shall not:

 

(a) by act or omission seek to abandon or terminate the

Condominium;

 

(b) following the recording of the Consolidating Master Deed

change the pro rata interest or obligations of any condominium

unit for the purpose of (i) levying assessments or

charges or allocating distributions of hazard insurance

proceeds or condemnation awards, or (ii) determining the

pro rata share of ownership of each condominium unit in

appurtenant real estate and any improvements thereon

which are owned by the co-owners in the Condominium in

undivided pro rata interests (“common elements”);

 

(c) partition or subdivide any condominium unit;

 

(d) by act or omission seek to abandon, partition, subdivide,

encumber, sell, or transfer the common elements (the

granting of easements for public utilities or for other public

purposes consistent with the intended use of the common

elements by the Condominium shall not be deemed a

transfer within the meaning of this clause); or

 

(e) use hazard insurance proceeds for losses to any condominium

property (either condominium units or common

elements) for anything other than the repair, replacement or

reconstruction of such improvements, except as provided

by statute in case of substantial loss to the condominium

units and/or common elements of the Condominium.

 

Section 6. Whenever a notice requirement appears in these

By-Laws for the benefit of a mortgage holder which requires a

response in support of or against a proposal submitted by the

Association, the mortgage holder shall respond within thirty (30)

days of receipt of said notice or the lack of response shall be

deemed as approval of the proposal, provided the notice was

delivered by certified mail, with a 'return receipt' requested.

 

Section 7. Upon written request submitted to the Association,

any institutional holder of a first mortgage lien on any unit

in the Condominium shall be entitled to receive written notice of

all meetings of Association members and to designate a repre-

sentative to attend all such meetings.

 

Section 8. Notwithstanding any other provisions of the

Condominium documents, the holder of any first mortgage

covering any unit in the Condominium which comes into possession

of the condominium unit pursuant to the remedies

provided in the mortgage or by 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 condominium unit which accrue

prior to the time such holder acquires title to the condominium

unit (except for claims for a pro rata share of such assessments

or charges resulting from a pro rata reallocation of such assessments

or charges to all units, including the mortgaged condominium

unit).

 

Section 9. The Association shall give the Federal Home

Loan Mortgage Corporation, the Federal National Mortgage

Association and all other mortgage holders of record notice (c/o

Servicer at Servicer's address) in writing of (a) any loss to or

the taking of the common elements and related facilities of the

Condominium if such loss or taking exceeds Ten Thousand

Dollars ($10,000.00), or (b) damage to a condominium unit

covered by a mortgage purchased in whole or in part by the

Federal Home Loan Mortgage Corporation, the Federal National

Mortgage Association or any other mortgage holder if

such damage exceeds One Thousand Dollars ($1,000.00). This

section shall apply only if the Federal Home Loan Mortgage

Corporation, the Federal National Mortgage Association or any

other mortgage holders holds a mortgage on a condominium

unit in the Condominium and has given notice of this ownership

to the Association.

 

Section 10. Nothing contained in the Condominium documents

shall be construed to give a condominium unit owner or

any other party priority over any rights of first mortgage holders

of condominium units pursuant to their mortgages in cases of a

distribution to condominium unit owners of insurance proceeds

or condemnation awards for losses to or taking of condominium

units and/or common elements.

 

Article VIII.

Amendments

 

Section 1. Amendments to these By-Laws may be proposed

by the Board of Directors of the Association acting upon

the vote of the majority of the Directors or by one-third (1/3) or

more in number of the co-owners voting in person or by

instrument in writing signed by them. Upon any such amendment

being proposed, a meeting for consideration of the same

shall be duly called in accordance with the provisions of the

Association By-Laws.

 

Section 2. These By-laws may be amended by an affirmative

vote of a majority of the Board of Directors, provided that

such amendments do not materially alter or change the rights of

co-owners, mortgage holders or other interested parties, and to

keep these By-Laws in Compliance with the Act.

 

Section 3. These By-Laws may be amended by the Association,

at any regular annual meeting or a special meeting

called for such purpose, by an affirmative vote of two-thirds (2/3)

of all co-owners in number and in value, and two-thirds (2/3)

of all first mortgage holders if the proposed amendment would

result in a material change to their rights hereunder or jeopardize

their security in the Condominium. A person causing or

requesting an amendment to the Condominium documents

shall be responsible for costs and expenses of the amendment

except for amendments based upon a vote of a prescribed

majority of co-owners, the costs of which are administrative

expenses.

 

Section 4. A copy of each amendment to these By-laws

shall be recorded in the Office of the Washtenaw County

Register of Deeds and shall be furnished to every member of the

Association after adoption; provided, however, that any amendment

to these By-Laws that is adopted in accordance with this

Article shall be binding upon all persons who have an interest

in the Condominium irrespective of whether such persons

actually received a copy of the amendment.

 

Section 5. Eligible mortgage holders, those holders of a first

mortgage on a unit who have requested the Association to notify

them on any proposed action that requires the consent of a

specified percentage of eligible mortgage holders, also shall

have the right to join in the decision making about certain

amendments to the Condominium documents.

 

Section 6. Any amendment to these Condominium By-

Laws shall become effective upon recording such amendment

in the Office of the Washtenaw County Register of Deeds.

Without the prior written approval of two-thirds (2/3) of all

institutional holders of first mortgage liens on any unit in the

Condominium, no amendment to these By-Laws shall become

effective which involve any change, direct or indirect, in Article

I, Sections 3 and 4(b), Article II, Sections 3(a) and 4, Article IV,

Section 1(d), Article V, Sections 1, 4 and 8. Article VII, Sections

1, 4, 5, 8. 9, and 10, Article VIII, Sections 3 and 6, or Article XI,

Section 1, or to any other provision that decreases the benefits

or increases the obligations or materially affects the rights of any

members of the Association, as further identified by the Federal

National Mortgage Association's legal guidelines in Chapter 4,

Conventional Projects, Legal Requirements, of the current

issue of the Federal National Mortgage Association's Lending

Guide.

 

Article IX.

Compliance

 

Section 1. The Association and all present or future co-

owners, tenants, future tenants, or any other persons acquiring

an interest in or using the facilities of the Condominium in any

manner are subject to and shall comply with the Act, as

amended, and the mere acquisition, occupancy or rental of any

unit or an interest therein or the utilization of or entry upon the

condominium premises shall signify that the Condominium

documents are accepted and ratified. In the event that the

Condominium documents conflict with the provisions of the Act,

the Act shall govern.

 

Article X.

Definitions

 

Section 1. All terms used herein shall have the same

meaning as set forth in the Master Deed to which these By-Laws

are attached as an Exhibitor as set forth in the Act.

 

Article XI.

Remedies for Default

 

Section1. Any default by a co-owner shall entitle the

Association or another co-owner or co-owners to the following

relief:

 

(a) Failure to comply with any of the terms or provisions of the

Condominium documents shall be grounds for relief, which

may include, without limitations, an action to recover sums

due for damages, injunctive relief, foreclosure of lien if

default in payment of assessments, or any combination

thereof, and such relief may be sought by the Association

or, if appropriate, by an aggrieved co-owner or co-owners.

 

(b) In any proceedings arising because of alleged default by a

co-owner, the Association, if successful, may recover the

costs of the proceedings and such actual and reasonable

attorneys' fees (not limited to statutory fees) as may be

determined by the court. In no event shall any co-owner be

entitled to recover such attorneys' fees.

 

(c) 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, limited or general, or into any condominium unit

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

authorized herein.

 

(d) The violation of any of the provisions of the Condominium

documents by any co-owner shall be grounds for assessment

by the Board of Directors of monetary fines for such

violations. No fine may be assessed unless rules and

regulations establishing such fine have first been duly

adopted by the Board of Directors of the Association and

notice given to all co-owners in the same manner as

prescribed in the Association By-Laws. Thereafter, fines

may be assessed only upon notice to the offending co-owner

as prescribed in the Association By-Laws and after

an opportunity for such co-owner to appear before the

Board no less than seven (7) days from the date of the

notice and offer evidence in defense of the alleged violation.

All fines duly assessed may be collected in the same

manner as provided in Article II of these By-Laws. No fine

shall be levied for the first violation. No fine shall exceed

Twenty-Ave Dollars ($25.00) for the second violation, Fifty

Dollars ($50.00) for the third violation, or One Hundred

Dollars ($100.00) for any subsequent violation.

 

(e) A co-owner may maintain an action against the Association

and its officers and Directors to compel these persons 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 or for damages or

any combination thereof for noncompliance with the terms

and provisions of the Condominium documents or the

Michigan Condominium Act.

 

(f) The failure of the Association or of any co-owner to enforce

any right, provision, covenant, or condition which may be

granted by the Condominium documents shall not constitute

a waiver of the right of the Association or of any such

co-owner to enforce such right, provision, covenant, or

condition in the future.

 

(g) All rights, remedies and privileges granted to the Association

and its co-owner(s) by the aforesaid Condominium

documents shall be deemed to be cumulative, and

the exercise of anyone or more shall not be deemed to

constitute an election of any one. This shall not preclude the

party from exercising other additional rights, remedies or

privileges as may be available by law.

 

Article XII.

Severability

 

Section 1. In the event that any of the terms, provisions or

covenants of these By-Laws or the Condominium documents

are held to be partially or wholly invalid or unenforceable for any

reason whatsoever, such holding shall not affect, alter, modify

or impair in any manner whatsoever any of the other terms,

provisions or covenants of such documents or the remaining

portions of any terms, provisions or covenants held to be

partially invalid or unenforceable.

 

 

 
 
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