Coach 2013 Annual Report Download - page 300

Article 6
Operation of the Property
Section 6.1 Determination of Common Expenses and Fixing of Common Charges.
(a) The Board of Managers shall from time to time, and at least annually, prepare an operating budget and, if appropriate,
a capital budget for the operation of the Common Elements, determine the amount of the charges (“ Common Charges”) payable by the Unit Owners to meet the
costs and expenses incurred by the Board of Managers in connection with the operation, care, upkeep (including, without limitation, obligations under the
applicable provisions of the Underlying Agreements) and Maintenance of, and the making of Alterations to, and Repairs of, the Common Elements in such
manner that the Building is maintained as a high-quality mixed-use project (all such costs and expenses, together with all other items which are provided for in
these By-Laws and the Declaration to be Common Expenses, the “ Common Expenses”). The Common Expenses shall be allocated to the Unit Owners in
accordance with their respective Common Interests except as otherwise set forth in the allocation schedule annexed hereto as Schedule 1 (the “Allocation
Schedule”), or as otherwise specifically provided in this Article 6. The Board of Managers shall have the right, from time to time, but at least once every year
to review and revise, if determined necessary, the Allocation Schedule due to changes in circumstances, including, but not limited to, a change in the Common
Interest of a Unit, a change in the usage by a Unit Owner of a line item set forth in the Allocation Schedule, provided that the Board of Managers may not
change the Allocation Schedule with respect to any Unit Owner without the consent of such Unit Owner. The Common Expenses shall include, among other
things, (i) the cost of all insurance premiums on all policies of insurance required to be or which have been obtained by the Board of Managers pursuant to the
provisions of Article 12 hereof; and (ii) may also include such amounts as the Board of Managers may deem proper for the operation and Maintenance of the
Common Elements, including, without limitation, an amount for working capital, for a general operating reserve, for a reserve fund for replacements, and to
make up any deficit in the Common Expenses for any prior year. Expenditures may be made only pursuant to a budget approved by the Board of Managers
(unless the Board of Managers agrees otherwise by appropriate vote) except for expenditures: (i) which must be made by reason of an Emergency; or (ii)
required by Law, Insurance Requirements, or the applicable provisions of the Underlying Agreements. The Board of Managers shall advise the Unit Owners,
promptly, in writing, of the amount of Common Charges payable by each of them, respectively, as determined by the Board of Managers, as aforesaid, and
shall furnish copies of each budget on which the Common Charges and Common Expenses are based, to the Unit Owners (and their respective Permitted
Mortgagees if required) and the Declarant Net Lessees.
(b) The budget for the first fiscal year of the Condominium has been agreed to among the intended initial Unit Owners (or
in the case of any Unit owned by Declarant, by the Declarant Net Lessee of such Unit), an abstract of which is annexed hereto as Schedule 2. 1 In the event
that a budget is not adopted by the Board of Managers as and when required, then, until such adoption, the budget in effect for the then concluding (or
concluded) fiscal year, increased by (i) anticipated expenditures for applicable Mandatory Costs and (ii) the CPI Increase Factor, shall remain in effect (such
budget, adjusted as aforesaid, a “Carryover Budget”). As used herein, “Mandatory Costs” means all costs attributable to insurance coverage the Board of
Managers is required to obtain and maintain under Article 12 hereof; costs under previously executed multi-year contracts with third-parties; taxes and other
governmental charges; utilities; compliance with Laws, Insurance Requirements, and the applicable provisions of the Underlying Agreements; amounts
payable to the Managing Agent under the terms of its management agreement; actions that the Board is required to take under the Condominium Documents;
and all existing contractual requirements; and “ CPI Increase Factor” is as defined in Section 20.7 hereof.
1To be annexed at time Condominium is formed.
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