2011 Vermont Code
Title 27A Uniform Common Interest Ownership Act (1994)
Chapter 3 Management of the Common Interest Commu=-nity
§ 102 Powers of unit owners' association [ 3-102 effective until January 1, 2012; see also section 3-102 effective January 1, 2012 set out below.]

[ 3-102 effective until January 1, 2012; see also section 3-102 effective January 1, 2012 set out below.]

§ 3-102. Powers of unit owners' association

(a) Except as provided in subsection (b) of this section, and subject to the provisions of the declaration, the association has the following powers:

(1) To adopt and amend bylaws and rules and regulations.

(2) To adopt and amend budgets for revenues, expenditures and reserves and collect assessments for common expenses from unit owners.

(3) To hire and discharge managing agents and other employees, agents and independent contractors.

(4) To initiate, defend or intervene in litigation or administrative proceedings in its name on behalf of itself or two or more unit owners on matters affecting the common interest community.

(5) To make contracts and incur liabilities.

(6) To regulate the use, maintenance, repair, replacement and modification of common elements.

(7) To make additional improvements to the common elements.

(8) To acquire, hold, encumber and convey in its name any interest to real estate or personal property, except as provided by section 3-112 of this title.

(9) To grant easements, leases, licenses and concessions through or over the common elements.

(10) To impose and receive payments, fees or charges for the use, rental or operation of the common elements, other than limited common elements described in subdivisions 2-102(2) and (4) of this title, and for services provided to unit owners.

(11) To impose charges for late payment of assessments and, after notice and a hearing, reasonable fines for violations of the declaration, bylaws and rules and regulations of the association.

(12) To impose reasonable charges for the preparation and recordation of amendments to the declaration, resale certificates or statements of unpaid assessments.

(13) To provide indemnification for its officers and executive board and maintain liability insurance for its officers and directors.

(14) To assign its right to future income, including the right to receive common expense assessments, to the extent provided by the declaration.

(15) To exercise any other power conferred by the declaration or bylaws, or which is legally provided for similar entities or which is necessary and proper to govern and operate the association.

(16) To require, by regulation, that disputes between the executive board and unit owners or between two or more unit owners regarding the common interest community must be submitted to nonbinding alternative dispute resolution in the manner described in the regulation as a prerequisite to commencement of a judicial proceeding.

(b) The declaration may not impose limitations on the power of the association to deal with the declarant which are more restrictive than the limitations imposed on the power of the association to deal with other persons.

(c) Unless otherwise permitted by the declaration or this title, an association may adopt rules and regulations that affect the use of or behavior in units that may be used for residential purposes only to:

(1) prevent any use of a unit which violates the declaration;

(2) regulate any behavior in or occupancy of a unit which violates the declaration or adversely affects the use and enjoyment of other units or the common elements by other unit owners; or

(3) restrict the leasing of residential units to the extent those rules are reasonably designed to meet underwriting requirements of institutional lenders who regularly lend money secured by first mortgages on units in common interest communities or regularly purchase those mortgages. Otherwise, the association may not regulate any use of or behavior in units.

(d) If a tenant of a unit owner violates the declaration, bylaws, or rules and regulations of the association, in addition to exercising any of its powers against the unit owner, the association may:

(1) exercise directly against the tenant the powers described in subdivision (a)(11) of this section;

(2) after giving notice to the tenant and the unit owner and an opportunity to be heard, levy reasonable fines against the tenant for the violation; and

(3) enforce any other rights against the tenant for the violation which the unit owner as landlord could lawfully have exercised under the lease or which the association could lawfully have exercised directly against the unit owner, or both.

(e) The rights granted under subdivision (d)(3) of this title may only be exercised if the tenant or unit owner fails to cure the violation within 10 days after the association notifies the tenant and unit owner of that violation.

(f) Unless a lease otherwise provides, this section does not:

(1) affect rights that the unit owner has to enforce the lease or that the association has under other law; or

(2) permit the association to enforce a lease to which it is not a party in the absence of a violation of the declaration, bylaws, or rules and regulations. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999.)