A. Applicability. When a Subdivision contains one or more Common Areas or other improvements not intended for dedication to the City for public use, a Property Owners' Association shall be created through a declaration establishing the duties and responsibilities, consistent with state law.
B. Dedication. The Common Areas shall be shown on the Final Plat along with an adequate form for dedication thereof.
1. This dedication form shall save the title to Common Areas for the benefit of the Property Owners' Association; and
2. The Subdivider shall convey the Common Areas to the Property Owners' Association by filing a declaration and restrictive covenants and providing a copy of such documents to the City (see subsection 2.5.7.F.5), and reference the documents by note on the face of the Plat.
C. Membership. A Property Owners' Association is an incorporated nonprofit organization operating under recorded land declarations through which:
1. Each lot owner in a described land area is automatically a member; and
2. Each lot is automatically subject to a charge for a proportionate share of the expenses for the Property Owners' Association's activities, such as maintenance of Common Areas, including common open spaces, private streets, stormwater infrastructure, ponds, recreational facilities, and the provision and upkeep of the same.
D. Legal requirements. To ensure the establishment of a permanent Property Owners' Association, including its financing and the rights and responsibilities of the homeowners in relation to the use, management and ownership of Common Areas, the Subdivision Plat, dedication documents, covenants, and other recorded legal agreements must:
1. Legally create an automatic membership, nonprofit Property Owners' Association;
2. Place title to the Common Areas in the Property Owners' Association or give definite assurance that it automatically will be so placed within a reasonable and defined time;
3. Appropriately limit the uses of the Common Areas;
4. Give each lot owner the right to the use and enjoyment of the Common Areas;
5. Place responsibility for operation and maintenance of the Common Areas or Property in with the Property Owners' Association;
6. Provide for or place an association charge or assessment on each lot in a manner that will ensure sufficient Association funds to maintain the Common Area and facilities;
7. Give each lot owner voting rights in the Association; and
8. Identify the land area within the Association's jurisdiction including, but not limited to, the following:
(i) The property intended for transfer to the City, PUA, or other public agency;
(ii) All properties or divisions of property or buildings (such as townhomes or condos) intended for private ownership;
(iii) The Common Areas to be transferred by the Developer, Builder, or Subdivider to the Property Owners' Association.
E. Private covenants. Private Covenants or Restrictions that assign responsibility to the Property Owners' Association for the maintenance and operation of all common property, and include provisions for assessments enforceable by lien shall be developed.
F. Procedure. Prior to or concurrent with the submittal of a Final Plat, the Developer, Builder, or Subdivider shall:
1. Draft the articles of incorporation of the Property Owners' Association, its bylaws, and the covenants;
2. Submit draft articles, bylaws, and covenants to the Planning Director for approval;
3. After approval, create an incorporated nonprofit corporation;
4. Record approved covenants, at the County Clerk's office, which will automatically make every property owner a member of the Association, give the owners the right to use the Common Areas, and establish voting rights and obligations to pay assessments;
5. Provide a copy of the recorded articles, bylaws, and the restrictive covenants prior to Final Plat approval; and
6. Pay attorney fees for document review.
G. Maintenance, repair, or capital improvement. Any maintenance, repair, or capital improvement effort made to Property Owners' Association property or facilities by the City as a result of non-performance or negligence on the part of the Association shall be assessed between the various Association members in proportion to the taxable value of their properties.
