NM Stat § 47-7C-15 (2021)
2021 New Mexico Statutes|Chapter 47 - Property Law|Article 7C - Condominium Act - Management of Condominium|Section 47-7C-15 - Assessments for common expenses.

A. Until the association makes a common expense assessment, the declarant shall pay all common expenses. After any assessment has been made by the association, assessments shall be made at least annually, based on a budget adopted at least annually by the association. B. Except for assessments under Subsections C, D and E of this section, all common expenses shall be assessed against all the units in accordance with the allocations set forth in the declaration pursuant to Subsection A of Section 19 [47-7B-7 NMSA 1978] of the Condominium Act. Any past-due common expense assessment or installment thereof bears interest at the rate established by the association not exceeding eighteen percent per year. C. To the extent required by the declaration: (1) any common expense associated with the maintenance, repair or replacement of a limited common element shall be assessed against the units to which that limited common element is assigned, equally, or in any other proportion that the declaration provides; (2) any common expense or portion thereof benefiting fewer than all of the units shall be assessed exclusively against the units benefited; and (3) the costs of insurance shall be assessed in proportion to risk and the costs of utilities shall be assessed in proportion to usage. D. Assessments to pay a judgment against the association shall be made only against the units in the condominium at the time the judgment was entered, in proportion to their common expense liabilities. E. If any common expense is caused by the misconduct of any unit owner, the association may assess that expense exclusively against his unit. F. If common expense liabilities are reallocated, common expense assessments and any installment thereof not yet due shall be recalculated in accordance with the reallocated common expense liabilities. History: Laws 1982, ch. 27, § 48. ANNOTATIONSCompiler's notes. — This section is substantially similar to § 3-115 of the Uniform Condominium Act. COMMISSIONERS' COMMENT 1. This section contemplates that a declarant might find it advantageous, particularly in the early stages of condominium development, to pay all of the expenses of the condominium himself rather than assessing each unit individually. Such a situation might arise, for example, where a declarant owns most of the units in the condominium and wishes to avoid billing the costs of each unit separately and crediting payment to each unit. It might also arise in the case of a declarant who, although willing to assume all expenses of the condominium, is unwilling to make payments for replacement reserves or for other expenses which he expects will ultimately be part of the association's budget. Subsection (a) [Subsection A] grants the declarant such flexibility while at the same time providing that once an assessment is made against any unit, all units, including those owned by the declarant, must be assessed for their full portion of the common expense liability. 2. Under subsection (c) [Subsection C], the declaration may provide for assessment on a basis other than the allocation made in § 2-107 [47-7B-7 NMSA 1978] as to limited common elements, other expenses benefiting less than all units, insurance costs and utility costs. 3. If additional units are added to a condominium after a judgment has been entered against the association, the new units are not assessed any part of the judgment debt. Since unit owners will know the assessment, and since such unpaid judgment assessments would affect the price paid by purchasers of units, it would be complicated and unnecessary to fairness to reallocate judgment assessments when new units are added. 4. Subsection (f) [Subsection F] refers to those instances in which various provisions of this act require that common expense liabilities be reallocated among the units of a condominium by amendment to the declaration. These provisions include § 1-107 [47-7A-7 NMSA 1978] (eminent domain), § 2-106(d) [47-7B-6C NMSA 1978] (expiration of certain leases), § 2-110 [47-7B-10 NMSA 1978] (exercise of development rights) and § 2-113(b) [47-7B-13B NMSA 1978] (subdivision or conversion of units). Am. Jur. 2d, A.L.R. and C.J.S. references. — 15A Am. Jur. 2d Condominiums and Cooperative Apartments §§ 34 to 37. Expenses for which condominium association may assess unit owners, 77 A.L.R.3d 1290. 31 C.J.S. Estates § 153 et seq.