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| To enact sections 5312.01 to 5312.15 of the Revised | 1 |
| Code to establish the Ohio Planned Community Law. | 2 |
| Section 1. That sections 5312.01, 5312.02, 5312.03, 5312.04, | 3 |
| 5312.05, 5312.06, 5312.07, 5312.08, 5312.09, 5312.10, 5312.11, | 4 |
| 5312.12, 5312.13, 5312.14, and 5312.15 of the Revised Code be | 5 |
| enacted to read as follows: | 6 |
| Sec. 5312.01. As used in this chapter: | 7 |
| (A) "Assessment" means the liability for an expense that is | 8 |
| allocated to a lot in a planned community. | 9 |
| (B) "Bylaws" means an instrument filed with the declaration | 10 |
| that provides for the operation of the owners association. | 11 |
| "Bylaws" also is referred to as "regulations" pursuant to Chapter | 12 |
| 1702. of the Revised Code. | 13 |
| (C) "Common element" means any property in a planned | 14 |
| community that the owners association holds in fee or has use of | 15 |
| pursuant to a lease or easement. | 16 |
| (D) "Common expense" means any expense or financial liability | 17 |
| of the owners association, including allocations the association | 18 |
| designates for reserves. | 19 |
| (E) "Declarant" means the owner of property who executes and | 20 |
| records a declaration that the property is a planned community. | 21 |
| (F) "Declarant control" means the period of time in which the | 22 |
| declarant controls the owners association by appointing or | 23 |
| electing the members of the association's board of directors. | 24 |
| (G) "Declaration" means an instrument a property owner | 25 |
| executes and records to declare that the property is a planned | 26 |
| community subject to the provisions of this chapter. | 27 |
| (H) "Dwelling unit" means a detached building or the portion | 28 |
| of a building that is designed and intended for use and occupancy | 29 |
| for residential purposes by a single household or family. | 30 |
| (I) "Limited common element" means a common element that a | 31 |
| declaration designates as reserved for use by a certain lot or | 32 |
| lots, to the exclusion of other lots. | 33 |
| (J) "Lot" means a parcel or tract of land that is formed when | 34 |
| a larger parcel of land is subdivided pursuant to Chapter 711. of | 35 |
| the Revised Code, has a separate parcel number assigned by the | 36 |
| county auditor, and is occupied or intended to be occupied by a | 37 |
| dwelling unit. | 38 |
| (K) "Owner" means a person who owns a lot in a planned | 39 |
| community. "Owner" does not include any person that has an | 40 |
| interest in a lot solely as security for an obligation. | 41 |
| (L) "Owners association" means an organization that is | 42 |
| comprised of owners of lots in a planned community and that is | 43 |
| responsible for the administrative governance, maintenance, and | 44 |
| upkeep of the planned community. | 45 |
| (M) "Planned community" means a community comprised of | 46 |
| individual lots for which a deed, common plan, or declaration | 47 |
| requires any of the following: | 48 |
| (1) That owners become members of an owners association that | 49 |
| governs the community; | 50 |
| (2) That owners or the owners association holds or leases | 51 |
| property or facilities for the benefit of the owners; | 52 |
| (3) That owners support by membership or fees, property or | 53 |
| facilities for all owners to use. | 54 |
| A condominium property as defined in section 5311.01 of the | 55 |
| Revised Code is not a "planned community." | 56 |
| Sec. 5312.02. (A) Any planned community in this state is | 57 |
| subject to this chapter. No person shall establish a planned | 58 |
| community unless that person files and records a declaration and | 59 |
| bylaws for that planned community in the office of the recorder of | 60 |
| the county or counties in which the planned community is located. | 61 |
| (B) Any declaration for a planned community shall be | 62 |
| accompanied by bylaws that provide for the operation of the | 63 |
| planned community. The declaration and bylaws shall provide for | 64 |
| all of the following: | 65 |
| (1) The election of the board of directors of the owners | 66 |
| association; | 67 |
| (2) The number of persons constituting the board; | 68 |
| (3) The terms of the directors, with not less than one-fifth | 69 |
| to expire annually; | 70 |
| (4) The powers and duties of the board; | 71 |
| (5) The method of removal of directors from office; | 72 |
| (6) Whether the services of a manager or managing agent may | 73 |
| be engaged; | 74 |
| (7) The method of amending the declaration and bylaws; | 75 |
| (8) The time and place for holding meetings and the manner of | 76 |
| and authority for calling, giving notice of, and conducting | 77 |
| meetings; | 78 |
| (9) The common expenses for which assessments may be made and | 79 |
| the manner of collecting from the owners their respective shares | 80 |
| of the common expenses; | 81 |
| (10) Any other matters the original declarant or the owners | 82 |
| association deem necessary and appropriate. | 83 |
| (C) Nothing in this chapter invalidates any provision of a | 84 |
| document that governs a planned community if that provision was in | 85 |
| the document at the time the document was recorded and the | 86 |
| document was recorded prior to the original effective date of this | 87 |
| chapter. | 88 |
| (D)(1) The board of directors of the owners association of | 89 |
| any planned community that is in existence on the original | 90 |
| effective date of this chapter shall file and record the bylaws of | 91 |
| that planned community that are in effect on that effective date | 92 |
| in the office of the recorder of the county or counties in which | 93 |
| the planned community is located within one hundred eighty days | 94 |
| after that effective date. | 95 |
| (2) The board of directors of the owners association of any | 96 |
| planned community that is in existence on the original effective | 97 |
| date of this chapter shall file and record the bylaws that are | 98 |
| adopted by the owners association on or after that effective date | 99 |
| in the office of the recorder of the county or counties in which | 100 |
| the planned community is located within ninety days after the date | 101 |
| of adoption of the bylaws. | 102 |
| (3) The board of directors of the owners association of any | 103 |
| planned community that adopts an amendment to the bylaws of that | 104 |
| planned community shall file and record the amendment in the | 105 |
| office of the recorder of the county or counties in which the | 106 |
| planned community is located within sixty days after the date of | 107 |
| adoption of the amendment. | 108 |
| (4) Nothing in division (D)(1) or (2) of this section shall | 109 |
| require the board of directors or owners association of any | 110 |
| planned community that is in existence on the original effective | 111 |
| date of this chapter to adopt bylaws of that planned community. | 112 |
| (5) No board of directors of the owners association of a | 113 |
| planned community that is in existence on the original effective | 114 |
| date of this chapter shall pursue any civil action against any | 115 |
| person based upon any provision of the bylaws of that planned | 116 |
| community or upon any amendments to the bylaws until the bylaws or | 117 |
| amendments are filed and recorded under division (D)(1), (2), or | 118 |
| (3) of this section. | 119 |
| Sec. 5312.03. (A)(1) An owners association shall administer a | 120 |
| planned community, and a board of directors the owners elect from | 121 |
| among the owners and their spouses shall exercise all power and | 122 |
| authority of the owners association. If an owner is not an | 123 |
| individual, any principal, member of a limited liability company, | 124 |
| partner, director, officer, trustee, or employee of the owner may | 125 |
| be elected to the board. | 126 |
| (2) Unless otherwise provided, a board of directors may carry | 127 |
| out any action this chapter requires or allows an owners | 128 |
| association to take, subject to any vote required of the owners. | 129 |
| (B) A declarant shall establish an owners association not | 130 |
| later than the date upon which the first lot in the planned | 131 |
| community is conveyed to a bona fide purchaser for value. The | 132 |
| owners association shall be organized as a nonprofit corporation | 133 |
| pursuant to Chapter 1702. of the Revised Code. | 134 |
| (C)(1) If provided in the declaration, a declarant may | 135 |
| control the owners association for the period of time the | 136 |
| declaration specifies. During the time of declarant control, the | 137 |
| declarant or the declarant's designee may appoint and remove the | 138 |
| members of the board. The period of declarant control shall | 139 |
| terminate not later than the time at which all of the lots have | 140 |
| been transferred to owners. | 141 |
| (2) Not later than the termination of any period of declarant | 142 |
| control, the owners shall elect a board of directors comprised of | 143 |
| the number of members the declaration or bylaws specify. | 144 |
| Sec. 5312.04. (A) A board of directors of an owners | 145 |
| association shall elect officers from the members of the board, to | 146 |
| include a president, secretary, treasurer, and other officers as | 147 |
| the board designates. | 148 |
| (B) A board may act in all instances on behalf of an | 149 |
| association unless otherwise provided in this chapter, the | 150 |
| declaration, or bylaws. The board may appoint persons to fill | 151 |
| vacancies in its membership for the unexpired portion of any term. | 152 |
| (C) Except during a period of declarant control, the board | 153 |
| shall call a meeting of the owners association at least once each | 154 |
| year. Special meetings may be called by the president, a majority | 155 |
| of the board, owners representing fifty per cent of the voting | 156 |
| power in the owners association, or any lower share of the voting | 157 |
| power as the declaration or bylaws specify. | 158 |
| (D) The board may hold a meeting by any method of | 159 |
| communication, including electronic or telephonic communication, | 160 |
| provided that each member of the board can hear or read in real | 161 |
| time and participate and respond to every other member of the | 162 |
| board. | 163 |
| (E) In lieu of conducting a meeting, the board may take an | 164 |
| action with the unanimous written consent of the members of the | 165 |
| board. Any written consent shall be filed with the minutes of the | 166 |
| meetings of the board. | 167 |
| (F) No owner other than a director may attend or participate | 168 |
| in any discussion or deliberation of a meeting of the board of | 169 |
| directors unless the board expressly authorizes that owner to | 170 |
| attend or participate. | 171 |
| (G) The board of directors of an owners association shall | 172 |
| comply with all applicable state and federal laws concerning | 173 |
| prohibitions against discrimination on the basis of race, color, | 174 |
| religion, sex, military status, national origin, disability, age, | 175 |
| or ancestry, including, but not limited to, Chapter 4112. of the | 176 |
| Revised Code. No private right of action additional to those | 177 |
| conferred by the applicable state and federal anti-discrimination | 178 |
| laws is conferred on any aggrieved individual by the preceding | 179 |
| sentence. | 180 |
| Sec. 5312.05. (A) Unless otherwise specified in the | 181 |
| declaration or bylaws, the owners may amend the declaration and | 182 |
| bylaws by the consent of seventy-five per cent of the owners, | 183 |
| either in writing or in a meeting called for that purpose. No | 184 |
| amendment to the declaration or bylaws is effective until filed in | 185 |
| the office of the county recorder. | 186 |
| (B) A vote to terminate the applicability of the declaration | 187 |
| and to dissolve the planned community requires the unanimous | 188 |
| consent of owners. | 189 |
| Sec. 5312.06. (A) Unless otherwise provided in the | 190 |
| declaration or bylaws, the owners association, through its board | 191 |
| of directors, shall do both of the following: | 192 |
| (1) Annually adopt and amend an estimated budget for revenues | 193 |
| and expenditures. Any budget shall include reserves in an amount | 194 |
| adequate to repair and replace major capital items in the normal | 195 |
| course of operations without the necessity of special assessments, | 196 |
| unless the owners, exercising not less than a majority of the | 197 |
| voting power of the owners association, waive the reserve | 198 |
| requirement annually. | 199 |
| (2) Collect assessments for common expenses from owners in | 200 |
| accordance with section 5312.10 of the Revised Code. | 201 |
| (B) Commencing not later than the time of the first | 202 |
| conveyance of a lot to a person other than a declarant, the owners | 203 |
| association shall maintain all of the following to the extent | 204 |
| reasonably available and applicable: | 205 |
| (1) Property insurance on the common elements; | 206 |
| (2) Liability insurance pertaining to the common elements; | 207 |
| (3) Directors and officers liability insurance. | 208 |
| (C) The owners association shall keep all of the following: | 209 |
| (1) Correct and complete books and records of account that | 210 |
| specify the receipts and expenditures relating to the common | 211 |
| elements and other common receipts and expenses; | 212 |
| (2) Records showing the collection of the common expenses | 213 |
| from the owners; | 214 |
| (3) Minutes of the meetings of the association and the board | 215 |
| of directors; | 216 |
| (4) Records of the names and addresses of the owners. | 217 |
| (D) An owners association, through its board of directors, | 218 |
| may do any of the following: | 219 |
| (1) Hire and fire managing agents, attorneys, accountants, | 220 |
| and other independent professionals and employees that the board | 221 |
| determines are necessary or desirable in the management of the | 222 |
| property and the association; | 223 |
| (2) Commence, defend, intervene in, settle, or compromise any | 224 |
| civil, criminal, or administrative action or proceeding that is in | 225 |
| the name of, or threatened against, the association, the board of | 226 |
| directors, or the property, or that involves two or more owners | 227 |
| and relates to matters affecting the property; | 228 |
| (3) Enter into contracts and incur liabilities relating to | 229 |
| the operation of the property; | 230 |
| (4) Enforce all provisions of the declaration, bylaws, | 231 |
| covenants, conditions, restrictions, and articles of incorporation | 232 |
| governing the lots, common elements, and limited common elements; | 233 |
| (5) Adopt and enforce rules that regulate the maintenance, | 234 |
| repair, replacement, modification, and appearance of common | 235 |
| elements, and any other rules as the declaration provides; | 236 |
| (6) Acquire, encumber, and convey or otherwise transfer real | 237 |
| and personal property, subject to section 5312.10 of the Revised | 238 |
| Code; | 239 |
| (7) Hold in the name of the owners association the real | 240 |
| property and personal property; | 241 |
| (8) Grant easements, leases, licenses, and concessions | 242 |
| through or over the common elements; | 243 |
| (9) Levy and collect fees or other charges for the use, | 244 |
| rental, or operation of the common elements or for services | 245 |
| provided to owners; | 246 |
| (10) Pursuant to section 5312.11 of the Revised Code, levy | 247 |
| the following charges and assessments: | 248 |
| (a) Interest and charges for the late payment of assessments; | 249 |
| (b) Returned check charges; | 250 |
| (c) Enforcement assessments for violations of the | 251 |
| declaration, the bylaws, and the rules of the owners association; | 252 |
| (d) Charges for damage to the common elements or other | 253 |
| property. | 254 |
| (11) Adopt and amend rules that regulate the collection of | 255 |
| delinquent assessments and the application of payments of | 256 |
| delinquent assessments; | 257 |
| (12) Impose reasonable charges for preparing, recording, or | 258 |
| copying the declaration, bylaws, amendments to the declaration and | 259 |
| bylaws, resale certificates, or statements of unpaid assessments; | 260 |
| (13) Authorize entry to any portion of the planned community | 261 |
| by designated individuals when conditions exist that involve an | 262 |
| imminent risk of damage or harm to common elements, another | 263 |
| dwelling unit, or to the health or safety of the occupants of that | 264 |
| dwelling unit or another dwelling unit; | 265 |
| (14) Subject to division (A)(1) of section 5312.09 of the | 266 |
| Revised Code, borrow money and assign the right to common | 267 |
| assessments or other future income to a lender as security for a | 268 |
| loan to the owners association; | 269 |
| (15) Suspend the voting privileges and use of recreational | 270 |
| facilities of an owner who is delinquent in the payment of | 271 |
| assessments for more than thirty days; | 272 |
| (16) Purchase insurance and fidelity bonds the directors | 273 |
| consider appropriate and necessary; | 274 |
| (17) Invest excess funds in investments that meet standards | 275 |
| for fiduciary investments under the laws of this state; | 276 |
| (18) Exercise powers that are any of the following: | 277 |
| (a) Conferred by the declaration or bylaws; | 278 |
| (b) Necessary to incorporate the owners association as a | 279 |
| nonprofit corporation; | 280 |
| (c) Permitted to be exercised in this state by a nonprofit | 281 |
| corporation; | 282 |
| (d) Necessary and proper for the government and operation of | 283 |
| the owners association. | 284 |
| Sec. 5312.07. (A) Unless otherwise prohibited by this | 285 |
| section, any owner may examine and copy the books, records, and | 286 |
| minutes of the owners association that division (C) of section | 287 |
| 5312.06 of the Revised Code describes, pursuant to reasonable | 288 |
| standards set forth in the declaration, bylaws, or rules the board | 289 |
| promulgates. The standards may include, but are not limited to, | 290 |
| standards governing the type of documents that are subject to | 291 |
| examination and copying, the times and locations at which those | 292 |
| documents may be examined or copied, and the specification of a | 293 |
| reasonable fee for copying the documents. | 294 |
| (B) Unless approved by the board of directors, an owner may | 295 |
| not examine or copy any of the following from books, records, and | 296 |
| minutes: | 297 |
| (1) Information that pertains to property-related personnel | 298 |
| matters; | 299 |
| (2) Communications with legal counsel or attorney work | 300 |
| product pertaining to potential, threatened or pending litigation, | 301 |
| or other property-related matters; | 302 |
| (3) Information that pertains to contracts or transactions | 303 |
| currently under negotiation, or information that is contained in a | 304 |
| contract or other agreement containing confidentiality | 305 |
| requirements and that is subject to those requirements; | 306 |
| (4) Information that relates to the enforcement of the | 307 |
| declaration, bylaws, or rules of the owners association against | 308 |
| other owners; | 309 |
| (5) Information, the disclosure of which is prohibited by | 310 |
| state or federal law. | 311 |
| Sec. 5312.08. (A) Unless otherwise provided by the | 312 |
| declaration, the owners association is responsible for reasonable | 313 |
| maintenance, repair, and replacement of the common elements, and | 314 |
| each owner is responsible for maintenance, repair, and replacement | 315 |
| of the owner's lot and improvements to that lot, including the | 316 |
| dwelling unit and the utility lines serving that dwelling unit. | 317 |
| (B) An owner shall permit agents or employees of the owners | 318 |
| association and other owners access through the owner's lot and | 319 |
| dwelling unit for the purpose of fulfilling the association's | 320 |
| duties and obligations. Any damage to the common elements, lot, or | 321 |
| dwelling unit due to that access is the responsibility of the | 322 |
| owner that caused the damage or the owners association if it is | 323 |
| responsible for the damage. That owner, or the owners association, | 324 |
| is liable for the prompt repair of any damage and, if not | 325 |
| repairable, for the value of the damaged property or item as it | 326 |
| existed immediately prior to that damage. | 327 |
| Sec. 5312.09. (A)(1) The owners association may not assign | 328 |
| the right to common assessments, or the future income from those | 329 |
| assessments, or convey any fee interest or any security interest | 330 |
| in any portion of the common elements unless the declaration | 331 |
| specifically provides for such a conveyance or seventy-five per | 332 |
| cent of the voting power of the owners association, or any larger | 333 |
| percentage the declaration specifies, approves the conveyance. | 334 |
| (2) The owners association may not convey any fee interest in | 335 |
| a limited common element or subject a limited common element to a | 336 |
| security interest without the approval of all of the owners of the | 337 |
| lots to which the limited common element is allocated. Any | 338 |
| proceeds of the conveyance of a limited common element are an | 339 |
| asset of the owners association. | 340 |
| (B) No contract to convey or subject a common element or a | 341 |
| limited common element to a security interest is enforceable | 342 |
| against the owners association unless it complies with division | 343 |
| (A) of this section. The board of directors, on behalf of the | 344 |
| owners association, has all powers necessary and appropriate to | 345 |
| effect a conveyance or encumbrance that division (A) of this | 346 |
| section permits, including the power to execute a deed or other | 347 |
| instrument. | 348 |
| Sec. 5312.10. (A)(1) In accordance with its declaration, all | 349 |
| costs the owners association incurs in the administration, | 350 |
| governance, and maintenance of a planned community are common | 351 |
| expenses. Unless otherwise provided in the declaration, all costs | 352 |
| of the administration, operation, maintenance, repair, and | 353 |
| replacement of the common elements are common expenses. | 354 |
| (2) The common expense liability of each lot shall be | 355 |
| allocated in accordance with the allocation set forth in the | 356 |
| declaration. If the declaration does not establish any allocation, | 357 |
| the common expense liability shall be allocated equally among all | 358 |
| the lots. | 359 |
| (3) The board of directors shall assess the common expense | 360 |
| liability for each lot at least annually, based on a budget the | 361 |
| board adopts at least annually. | 362 |
| (B) The board shall charge interest on any past due | 363 |
| assessment or installment at the rate the board establishes, not | 364 |
| to exceed any maximum rate permitted by law. | 365 |
| (C)(1) The board may not charge assessments for common | 366 |
| expenses unless the declaration provides for or contemplates the | 367 |
| charging of such assessments. | 368 |
| (2) The board may not increase any assessment for common | 369 |
| expenses when the declaration limits the amount of such | 370 |
| assessments unless the owners amend the declaration as provided in | 371 |
| division (A) of section 5312.05 of the Revised Code to allow the | 372 |
| increased amount. | 373 |
| Sec. 5312.11. (A) An owners association may assess an | 374 |
| individual lot for any of the following: | 375 |
| (1) Enforcement assessments and individual assessments for | 376 |
| utility service that are imposed or levied in accordance with the | 377 |
| declaration, as well as expenses the board incurs in collecting | 378 |
| those assessments; | 379 |
| (2) Costs of maintenance, repair, or replacement incurred due | 380 |
| to the willful or negligent act of an owner or occupant of a lot | 381 |
| or their family, tenants, guests, or invitees, including, but not | 382 |
| limited to, attorney's fees, court costs, and other expenses; | 383 |
| (3) Costs associated with the enforcement of the declaration | 384 |
| or the rules and regulations of the owners association, including, | 385 |
| but not limited to, attorney's fees, court costs, and other | 386 |
| expenses; | 387 |
| (4) Costs or charges the declaration or bylaws permit. | 388 |
| (B) Unless otherwise provided by the declaration, bylaws, or | 389 |
| rules, the owners association shall credit any amount it receives | 390 |
| from a lot owner pursuant to this section in the following order: | 391 |
| (1) To interest owed to the owners association; | 392 |
| (2) To administrative late fees or enforcement assessments | 393 |
| owed to the owners association; | 394 |
| (3) To collection costs, attorney's fees, and paralegal fees | 395 |
| the owners association incurred in collecting the assessment; | 396 |
| (4) To the oldest principal amounts the owner owes to the | 397 |
| owners association for the common expenses chargeable against the | 398 |
| dwelling unit or lot. | 399 |
| (C) Prior to imposing a charge for damages or an enforcement | 400 |
| assessment pursuant to this section, the board of directors shall | 401 |
| give the owner a written notice that includes all of the | 402 |
| following: | 403 |
| (1) A description of the property damage or violation; | 404 |
| (2) The amount of the proposed charge or assessment; | 405 |
| (3) A statement that the owner has a right to a hearing | 406 |
| before the board to contest the proposed charge or assessment; | 407 |
| (4) A statement setting forth the procedures to request a | 408 |
| hearing; | 409 |
| (5) A reasonable date by which the owner must cure a | 410 |
| continuing violation to avoid the proposed charge or assessment, | 411 |
| if such an opportunity to cure is applicable. | 412 |
| (D)(1) To request a hearing, the owner shall deliver a | 413 |
| written notice to the board not later than the tenth day after | 414 |
| receiving the notice this division requires. If the owner fails to | 415 |
| make a timely request for a hearing, the right to that hearing is | 416 |
| waived, and the board immediately may impose a charge for damages | 417 |
| or an enforcement assessment pursuant to this section. | 418 |
| (2) If an owner requests a hearing, at least seven days prior | 419 |
| to the hearing the board shall provide the owner with a written | 420 |
| notice that includes the date, time, and location of the hearing. | 421 |
| (3) The board shall not levy a charge or assessment before | 422 |
| holding any hearing requested pursuant to this section. | 423 |
| (4) Within thirty days following a hearing at which the board | 424 |
| imposes a charge or assessment, the owners association shall | 425 |
| deliver a written notice of the charge or assessment to the owner. | 426 |
| (5) Any written notice that this section requires shall be | 427 |
| delivered to the owner or any occupant of the dwelling unit by | 428 |
| personal delivery, by certified mail, return receipt requested, or | 429 |
| by regular mail. | 430 |
| Sec. 5312.12. (A) The owners association has a lien upon the | 431 |
| estate or interest in any lot for the payment of any assessment or | 432 |
| charge levied in accordance with section 5312.11 of the Revised | 433 |
| Code, as well as any related interest, administrative late fees, | 434 |
| enforcement assessments, collection costs, attorney's fees, and | 435 |
| paralegal fees, that are chargeable against the lot and that | 436 |
| remain unpaid ten days after any portion has become due and | 437 |
| payable. | 438 |
| (B) All of the following apply to a lien charged against a | 439 |
| property pursuant to this section: | 440 |
| (1) The lien is effective on the date that a certificate of | 441 |
| lien is filed for record in the office of the recorder of the | 442 |
| county or counties in which the lot is situated, pursuant to | 443 |
| authorization by the board of directors of the owners association. | 444 |
| The certificate shall contain a description of the lot, the name | 445 |
| of the record owner of the lot, and the amount of the unpaid | 446 |
| assessment or charge. It shall be subscribed to by the president | 447 |
| of the board or other designated representative of the owners | 448 |
| association. | 449 |
| (2) The lien is a continuing lien upon the lot against which | 450 |
| each assessment or charge is made, subject to automatic subsequent | 451 |
| adjustments reflecting any additional unpaid interest, | 452 |
| administrative late fees, enforcement assessments, collection | 453 |
| costs, attorney's fees, paralegal fees, and court costs. | 454 |
| (3) The lien is valid for a period of five years from the | 455 |
| date of filing, unless it is sooner released or satisfied in the | 456 |
| same manner provided by law for the release and satisfaction of | 457 |
| mortgages on real property or unless it is discharged by the final | 458 |
| judgment or order of a court in an action brought to discharge the | 459 |
| lien as provided in this section. | 460 |
| (4) The lien is prior to any lien or encumbrance subsequently | 461 |
| arising or created, except liens for real estate taxes and | 462 |
| assessments of political subdivisions and liens of first mortgages | 463 |
| that have been filed for record prior to the recording of the | 464 |
| lien, and may be foreclosed in the same manner as a mortgage on | 465 |
| real property in an action brought by the owners association. | 466 |
| (C)(1) In any foreclosure action that the holder of a lien | 467 |
| commences, the holder shall name the owners association as a | 468 |
| defendant in the action. The owners association or the holder of | 469 |
| the lien is entitled to the appointment of a receiver to collect | 470 |
| rental payments due on the property. Any rental payment a receiver | 471 |
| collects during the pendency of the foreclosure action shall be | 472 |
| applied first to the payment of the portion of the common expenses | 473 |
| chargeable to the lot during the foreclosure action. | 474 |
| (2) Unless prohibited by the declaration or the bylaws, | 475 |
| following any foreclosure action, the owners association or an | 476 |
| agent the board authorizes is entitled to become a purchaser at | 477 |
| the foreclosure sale. | 478 |
| (3) A mortgage on a lot may contain a provision that secures | 479 |
| the mortgagee's advances for the payment of the portion of the | 480 |
| common expenses chargeable against the lot upon which the | 481 |
| mortgagee holds the mortgage. | 482 |
| (D) An owner may commence an action for the discharge of the | 483 |
| lien in the court of common pleas of the county in which all or a | 484 |
| part of the property is situated if the owner believes that the | 485 |
| liability for the unpaid assessment or charge for which the owners | 486 |
| association filed a certificate of lien was improperly charged. In | 487 |
| the action, if it is finally determined that the unpaid amount of | 488 |
| the assessment or charge was improperly charged to the owner or | 489 |
| the lot, the court shall enter an order that it determines to be | 490 |
| just, which may provide for a discharge of record of all or a | 491 |
| portion of the lien and an award of attorney's fees to the owner. | 492 |
| Sec. 5312.13. The owners association and all owners, | 493 |
| residents, tenants, and other persons lawfully in possession and | 494 |
| control of any part of an ownership interest shall comply with any | 495 |
| covenant, condition, and restriction set forth in any recorded | 496 |
| document to which they are subject, and with the bylaws and the | 497 |
| rules of the owners association, as lawfully amended. Any | 498 |
| violation is grounds for the owners association or any owner to | 499 |
| commence a civil action for damages, injunctive relief, or both, | 500 |
| and an award of court costs and reasonable attorney's fees in both | 501 |
| types of action. | 502 |
| Sec. 5312.14. In any action relating to the common elements | 503 |
| or to any right, duty, or obligation possessed or imposed upon the | 504 |
| owners association by statute or otherwise, the owners association | 505 |
| may sue or be sued as a separate legal entity. Service of summons | 506 |
| or other process may be made upon the owners association by | 507 |
| serving the process personally upon the president of the board of | 508 |
| directors or the person named as statutory agent of the | 509 |
| association if it is an incorporated entity. Any action brought by | 510 |
| or on behalf of the owners association shall be pursuant to | 511 |
| authority granted by the board of directors. | 512 |
| Sec. 5312.15. This chapter shall be construed to establish a | 513 |
| uniform framework for the operation and management of planned | 514 |
| communities in this state and to supplement any planned community | 515 |
| governing document that is in existence on the effective date of | 516 |
| this chapter. In the event of a specific conflict between this | 517 |
| chapter and express requirements or restrictions in such a | 518 |
| governing document, the governing document shall control. This | 519 |
| chapter shall control if any governing document is silent with | 520 |
| respect to any provision of this chapter. | 521 |