(A) Homeowners association. Any subdivision creating an area or amenity to be owned in common by the owners of lots within the subdivision shall require the establishment of a homeowners association prior to the approval of the final plat.
(1) Documents establishing the homeowners association shall be submitted to the city for review by the City Attorney for conformance with this chapter and other applicable ordinances prior to approval of a final plat.
(2) The documents shall specify:
(a) Membership in the association is mandatory for all owners of property within the subdivision;
(b) All association responsibilities and property interests;
(c) Bylaws related to the governance of the association;
(d) Covenants for maintenance assessments which run with the land;
(e) Responsibility for liability insurance and local taxes;
(f) Authority for the association to secure funds from its members sufficient to meet its responsibilities. This authority shall include the ability to collect dues, to increase dues, charge special assessments, and place liens against property for failing to pay dues and assessments; and
(g) Other city requirements as applicable, including the right of the city to enjoin, or enforce provisions of the restrictive covenants, or bylaws, as per the example available from the city staff.
(B) Amenities.
(1) City requirements. Where amenities are proposed as a part of a subdivision or addition, those amenities shall be maintained by a homeowners association. The city may require the following:
(a) Plans and illustrations of the proposed amenities;
(b) Cost estimates of construction, maintenance, and operating expenses;
(c) Association documents, deed restrictions, contracts, and agreements pertaining to the amenities; and
(d) Provision of surety as required for maintenance and other expenses related to the amenities.
(2) Designs. The design of amenities shall be reviewed by the Commission and approved by the City Council.
(3) Completion. All amenities shall be completed and in place prior to the City Engineer making an acceptance of the public improvements and prior to final release of certificate of occupancy and occupying of residential structures.
(C) Notice to purchasers. When a homeowners association is required, builders are required to post notice in a prominent place in all model homes and sales offices stating that a homeowners association has been established and membership is mandatory for all homeowners. The notice shall state at a minimum that the builder shall provide any person upon his or her request the association documents and a 5-year projection of dues income and association expenses.
(D) Maintenance reserve fund. Prior to the transfer of the association to the lot owners, the developer shall provide a reserve fund equivalent to 2 months’ dues based on full association membership.
(E) Property association activation. Concurrent with the transfer of the association, the developer shall transfer to the association control over all utilities related to property and amenities to be owned by the association. The developer shall also disclose to the association the total cost to date related to the operation and maintenance of common property and amenities.
(Ord. 487, passed 7-18-2000; Am. Ord. 737, passed 7-20-2016) Penalty, see § 155.999