Contributions for expenses
Sec. 4. (a) Except as provided in subsection (d) or (e), the
co-owners are bound to contribute pro rata, in the percentages
computed under section 3 of this chapter, toward:
(1) the expenses of administration and of maintenance and
repair of the general common areas and facilities and, in the
proper case, of the limited common areas and facilities of the
building; and
(2) any other expense lawfully agreed upon.
(b) A co-owner may not exempt the co-owner from contributing
toward the expenses referred to in subsection (a) by:
(1) waiver of the use or enjoyment of the common areas and
facilities; or
(2) abandonment of the condominium unit belonging to the
co-owner.
(c) All sums assessed by the association of co-owners shall be
established by using generally accepted accounting principles applied
on a consistent basis and shall include the establishment and
maintenance of a replacement reserve fund. The replacement reserve
fund may be used for capital expenditures and replacement and
repair of the common areas and facilities and may not be used for
usual and ordinary repair expenses of the common areas and
facilities. The fund shall be:
(1) maintained in a separate interest bearing account with a
bank or savings association authorized to conduct business in
the county in which the condominium is established; or
(2) invested in the same manner and in the same types of
investments in which the funds of a political subdivision may
be invested:
(A) under IC 5-13-9; or
(B) as otherwise provided by law.
Assessments collected for contributions to the fund are not subject
to adjusted gross income tax.
(d) If permitted by the declaration, the declarant or a developer (or
a successor in interest of either) that is a co-owner of unoccupied
condominium units offered for the first time for sale is excused from
contributing toward the expenses referred to in subsection (a) for
those units for a period that:
(1) is stated in the declaration;
(2) begins on the day that the declaration is recorded; and
(3) terminates no later than the first day of the twenty-fourth
calendar month following the month in which the closing of the
sale of the first condominium unit occurs.
However, if the expenses referred to in subsection (a) incurred by the
declarant, developer, or successor during the period referred to in
this subsection exceed the amount assessed against the other
co-owners, the declarant, developer, or successor shall pay the
amount by which the expenses incurred by the declarant, developer,
or successor exceed the expenses assessed against the other
co-owners.
(e) If the declaration does not contain the provisions referred to in
subsection (d), the declarant or a developer (or a successor in interest
of either) that is a co-owner of unoccupied condominium units
offered for the first time for sale is excused from contributing toward
the expenses referred to in subsection (a) for those units for a stated
period if the declarant, developer, or successor:
(1) has guaranteed to each purchaser in the purchase contract,
the declaration, or the prospectus, or by an agreement with a
majority of the other co-owners that the assessment for those
expenses will not increase over a stated amount during the
stated period; and
(2) has obligated itself to pay the amount by which those
expenses incurred during the stated period exceed the
assessments at the guaranteed level under subdivision (1)
receivable during the stated period from the other co-owners.
As added by P.L.2-2002, SEC.10. Amended by P.L.192-2002(ss),
SEC.172.
Last modified: May 24, 2006