(1) The declaration must allocate to each unit:
In a condominium, a fraction or percentage of undivided interests in the commonelements and in the common expenses of the association and, to the extent not allocated in the bylaws of the association, a portion of the votes in the association;
In a cooperative, an ownership interest in the association, a fraction or percentage ofthe common expenses of the association, and, to the extent not allocated in the bylaws of the association, a portion of the votes in the association;
In a planned community, a fraction or percentage of the common expenses of theassociation and, to the extent not allocated in the bylaws of the association, a portion of the votes in the association; except that, in a large planned community, the common expenses of the association may be paid from assessments and allocated as set forth in the declaration and the votes in the association may be allocated as set forth in the declaration.
The declaration must state the formulas used to establish allocations of interests.Those allocations may not discriminate in favor of units owned by the declarant or an affiliate of the declarant.
If units may be added to or withdrawn from the common interest community, thedeclaration must state the formulas to be used to reallocate the allocated interests among all units included in the common interest community after the addition or withdrawal.
(a) The declaration may provide:
That different allocations of votes shall be made to the units on particular mattersspecified in the declaration;
For cumulative voting only for the purpose of electing members of the executiveboard;
For class voting on specified issues affecting the class, including the election of theexecutive board; and
For assessments including, but not limited to, assessments on retail sales and services not to exceed six percent of the amount charged for the retail sale or service, and real estate transfers not to exceed three percent of the real estate sales price or its equivalent.
A declarant may not utilize cumulative or class voting for the purpose of evading anylimitation imposed on declarants by this article, nor may units constitute a class because they are owned by a declarant.
Assessments allowed under subparagraph (IV) of paragraph (a) of this subsection (4) shall be entitled to the lien provided for under section 38-33.3-316 (1) but shall not be entitled to the priority established by section 38-33.3-316 (2)(b).
Communities with classes for voting specified in the declaration as allowed pursuantto subparagraph (III) of paragraph (a) of this subsection (4) may designate classes of members on a reasonable basis which do not allow the declarant to control the association beyond the period provided for in section 38-33.3-303, including, without limitation, residence owners, commercial space owners, and owners of lodging space and to elect members to the association executive board from such classes.
Except for minor variations due to the rounding of fractions or percentages, the sumof the common expense liabilities and, in a condominium, the sum of the undivided interests in the common elements allocated at any time to all the units shall each equal one if stated as fractions or one hundred percent if stated as percentages. In the event of discrepancy between an allocated interest and the result derived from application of the pertinent formula, the allocated interest prevails.
In a condominium, the common elements are not subject to partition except as allowed for in section 38-33.3-312, and any purported conveyance, encumbrance, judicial sale, or other voluntary or involuntary transfer of an undivided interest in the common elements not allowed for in section 38-33.3-312, that is made without the unit to which that interest is allocated is void.
In a cooperative, any purported conveyance, encumbrance, judicial sale, or other voluntary or involuntary transfer of an ownership interest in the association made without the possessory interest in the unit to which that interest is related is void.
Source: L. 91: Entire article added, p. 1719, § 1, effective July 1, 1992. L. 93: (1) amended, p. 647, § 11, effective April 30. L. 94: (1)(c) and (4)(a) amended and (4)(c) and (4)(d) added, p. 2847, § 4, effective July 1. L. 95: (4)(a)(IV) amended, p. 238, § 4, effective July 1. L. 98: (4)(a)(III), (4)(a)(IV), and (4)(d) amended, p. 480, § 5, effective July 1. L. 2002: (6) amended, p. 767, § 3, effective August 7.