Section 1: Creation of the Lien and Personal Obligation of Assessments

     The Declarant, subject to section 6 of this Article, for each Lot owned within the Properties, hereby covenants, and each Owner of any Lot by acceptance of a deed therefore, whether or not it shall be so expressed in such deed, is deemed to covenant and agree to pay to the Association: (1) annual assessments or charges, and (2) special assessments for the capital improvements, such assessments to be established and collected as hereinafter provided.  The annual and special assessments, together with interest, costs, and reasonable attorney’s fees, shall be charge on the land and shall be a continuing lien upon the property against which each such assessment is made.  Each such assessment, together with interest, costs, and a reasonable attorney’s fees, shall be the personal obligation of the person who was the Owner of such property at the time when the assessment fell due.  The personal obligation for delinquent assessments shall not pass to his successors in title unless expressly assumed by them.

Section 2: Purpose of Assessments

     The assessments levied by the Association shall be used exclusively to operate the Homeowners Association and to promote the recreation, health, safety, and welfare of the residents in the Properties and to improve and maintain the Properties, including the establishment of reasonable reserves, for such purposes.

Section 3: Maximum Annual Assessment

     Until January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual assessment shall be Five Hundred and Forty Dollars ($540.00) (Forty-five Dollars ($45.00) per month) per Lot.

(a)     From and after January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual assessment may be increased each year by any increase in the Consumer Price Index for the Pittsburgh Area for the previous year, plus 5%, above the maximum assessment for the previous year without a vote of the membership.

(b)     From and after January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual assessment may be increased above any increase in the Consumer Price Index for the Pittsburgh Area for the previous year, plus 5%, by vote of one-half (1/2) of the members who are voting in person or by proxy, at a meeting dully called for this purpose.

(c)     The Board of Directors may fix the annual assessment to an amount not in excess of the maximum.

Section 4: Special Assessments for Capital Improvements

     In addition to the annual assessments authorized above, the Association may levy, in any assessment year, a special assessment applicable to that year only for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital improvement upon the Common Area, or any Lot or Lots including fixtures and personal property related thereto, provided that any such assessment shall have the assent of one-half (1/2) of the votes of each class of members who are voting in person or by proxy at a meeting duly called for this purpose. 

Section 5: Notice and Quorum for Any Action Authorized Under Section 3 and 4

     Written notice of any meeting called for the purpose of taking any action authorized under Section 3 and 4 shall be sent to all members not less than 30 days nor more than 60 days in advance of the meeting.  At the first such meeting called, the presence of members or of proxies entitled to cast sixty percent (60%) of all the votes of each class of membership shall constitute a quorum.  If the required quorum is not present, another meeting may be called subject to the same notice requirement, and the required quorum at the subsequent meeting shall be one-half (1/2) of the required quorum at the preceding meeting.  No such subsequent meeting shall be held more than 60 days following the preceding meeting.

Section 6: Uniform Rate of Assessment: Exemption for Class B Member

     Both annual and special assessments must be fixed at a uniform rate for all improved Lots and may be collected on a monthly basis, provided however, the Declarant by virtue of ownership of a Lot or Lots shall not be responsible for the payment of any assessment for maintenance or capital improvements unless the Declarant becomes a class A member with respect to such Lot by constructing upon it and using a habitable dwelling unit not held as Declarant’s regular inventory. 

Section 7: Date of Commencement of Annual Assessments: Due Dates

     The annual assessments provided for herein shall commence as to all Lots on the first day of the month following the conveyance of the Common Area.  The first annual assessment shall be adjusted according to the number of months remaining in the calendar year.  The Board of Directors shall fix the amount of the annual assessment against each Lot at least thirty (30) days in advance of each annual assessment period.  Written notice of the annual assessment shall be sent to every Owner subject thereto.  The due dates shall be established by the Board of Directors.  All Properties transferred at any time hereafter shall be subject to any outstanding or pending assessments.  The Association shall, however, upon demand, and for a reasonable charge, furnish a certificate signed by an officer of the association setting forth whether the assessments on a specified Lot have been paid.  A properly executed certificate of the Association as to the status of assessments on a lot is binding upon the Association as of the date of its issuance.

Section 8: Effect of Nonpayment of Assessments: Remedies of the Association

     Any assessment not paid on the due date shall be subject to a late payment fee of $15.00, and in addition thereto, if not paid within thirty (30) days after the due date shall bear interest from the due date at the rate of 10 percent per annum, or such higher late payment fees and interest rates as the Association may from time to time determine.  The Association may bring an action at law against the Owner personally obligated to pay the same, or foreclose the lien against the property.  No Owner may waive or otherwise escape liability for the assessments provided for herein by non-use of the Common Area or abandonment of his Lot.

Section 9: Subordination of the Lien to Mortgages

     The lien of the assessments provided for herein shall be subordinate to the lien of any first mortgage.  Sale or transfer of any Lot shall not affect the assessment lien.  However, the sale or transfer of any Lot pursuant to mortgage foreclosure or any proceeding in lieu there of, shall extinguish the lien of such assessments as to payments which became due prior to such sale or transfer.  No sale or transfer shall relieve such Lot from liability for any assessments thereafter becoming due or from the lien thereof.