§ 47F-3-115. Assessments for common expenses. - North Carolina Statutes

§ 47F‑3‑115. Assessments for common expenses.

(a)        Except as otherwiseprovided in the declaration, until the association makes a common expenseassessment, the declarant shall pay all common expenses. After any assessmenthas been made by the association, assessments thereafter shall be made at leastannually.

(b)        Except forassessments under subsections (c), (d), and (e) of this section, all commonexpenses shall be assessed against all the lots in accordance with theallocations set forth in the declaration. Any past‑due common expenseassessment or installment thereof bears interest at the rate established by theassociation not exceeding eighteen percent (18%) per year. For plannedcommunities created prior to January 1, 1999, interest may be charged on anypast‑due common expense assessment or installment only if the declarationprovides for interest charges, and where the declaration does not otherwisespecify the interest rate, the rate may not exceed eighteen percent (18%) peryear.

(c)        To the extentrequired by the declaration:

(1)        Any common expenseassociated with the maintenance, repair, or replacement of a limited commonelement shall be assessed against the lots to which that limited common elementis assigned, equally, or in any other proportion that the declaration provides;

(2)        Any common expenseor portion thereof benefiting fewer than all of the lots shall be assessedexclusively against the lots benefitted; and

(3)        The costs ofinsurance shall be assessed in proportion to risk and the costs of utilitiesshall be assessed in proportion to usage.

(d)        Assessments to paya judgment against the association may be made only against the lots in theplanned community at the time the judgment was entered, in proportion to theircommon expense liabilities.

(e)        If any commonexpense is caused by the negligence or misconduct of any lot owner or occupant,the association may assess that expense exclusively against that lot owner oroccupant's lot.

(f)         If common expenseliabilities are reallocated, common expense assessments and any installmentthereof not yet due shall be recalculated in accordance with the reallocatedcommon expense liabilities. (1998‑199, s. 1.)