KRS § 381.797 — KY Code / Title XXXII / Chapter 381 / Section 381.797
381.797 Elements of assessments for each lot -- Notice of charges -- Special assessments -- Claimed breach of fiduciary duty -- Annual budget
Status: in_force

381.797 Elements of assessments for each lot -- Notice of charges -- Special

assessments -- Claimed breach of fiduciary duty -- Annual budget.

(1) In addition to the provisions of the declaration, bylaws, rules, or regulations of the

association the assessment for each lot shall consist of:

(a) The allocated common expense liability;

(b) Fines for violations levied by the board;

(c) Individual assessments for utility services that are imposed or levied in

accordance with the declaration;

(d) Costs of maintenance, repair, or replacement incurred due to the willful or

negligent act of an owner or occupant of a lot or the family, tenants, guests, or

invitees of an owner or occupant of a lot; and

(e) Costs or charges associated with the enforcement of the declarations, bylaws,

rules and regulations of the association, and any provision of this section,

including but not limited to reasonable attorney fees, costs, and other expense.

(2) Prior to imposing a charge for fines, damages, or an individual assessment pursuant

to this section, the board shall give the owner a written notice and the opportunity to

be heard.

(3) In addition to all other assessments which are authorized in the declaration, the

board of an association shall have the power to levy a special assessment against lot

owners:

(a) If the board finds that the purpose of the assessment is in the best interests of

the association; and

(b) The proceeds of the assessment are used primarily for the maintenance and

upkeep of the common areas and other such areas of association responsibility

expressly provided for in the declaration, including capital expenditures.

(4) After termination of the declarant control period, an affirmative vote of a majority

of the full board shall be required to approve a special assessment subject to the

following provisions:

(a) Within thirty (30) days after board passage of a special assessment, a meeting

of the association shall be held to allow owners an opportunity to rescind or

reduce the special assessment; and

(b) A majority of the total number of lots of the planned community cast in

person or by proxy shall be required to rescind or reduce the special

assessment.

(5) No director or officer of the association shall be liable for failure to perform his or

her fiduciary duty if a special assessment for the funds necessary for the director or

officer to perform his or her fiduciary duty is rescinded or reduced by the owners

pursuant to this section. The association shall indemnify such director or officer

against any damage resulting from a claimed breach of fiduciary duty arising

therefrom.

(6) The failure of an owner to pay an assessment or special assessment allowed under

this section shall provide the association with the right to deny the owner access to

any or all of the common areas, except that access to any road within the planned

community that is a common area and provides direct access to the owner's lot shall

not be denied.

(7) The board shall adopt an annual budget. The board shall:

(a) Provide a budget to all owners within thirty (30) days after the adoption;

(b) If the adopted budget contains an increase of greater than fifteen percent

(15%) from the previous year's budget, provide notice to the members of a

special meeting to consider member ratification of the budget;

(c) Hold a meeting within forty-five (45) days after the summary has been

provided to members;

(d) Deem the budget ratified, whether or not a quorum is present, unless at that

meeting a majority of all owners, or any larger vote specified in the

declaration, reject the budget; and

(e) If the budget is rejected, continue the existing budget until such time as a

subsequent budget is adopted by the board in conformity with this subsection.

(8) The provisions of this section shall override any limitation on the amount of

assessments or the amount of annual increases that may be contained in existing

declarations, bylaws, rules, or regulations of a planned community.