Section 1 – Physical Damage
All buildings and improvements (as defined in subsection (e) hereof), and all of their personal property owned by the Association shall be insured for the benefit of the Association, the Townhouse Owners and mortgagees of Townhouses as their interests may appear, against risk or physical damages as follows:
(a) Amounts – As to real property, for an amount equal to not less than the agreed amount of its replacement cost; as to personal property, for an amount equal to its actual cash value. Prior to obtaining any insurance on real property under this Section, and at least annually thereafter, the Board of Governors shall obtain an appraisal from a qualified appraiser for the purposes of determining the replacement cost of such real property.
(b) Risks Insured Against – The insurance shall afford protection against loss or damage by reason of:
(1) Fire and other perils normally covered by extended coverage;
(2) Vandalism and malicious mischief as normally covered in standard insurance policies;
(3) Such other risk of physical damage as from time to time may be customarily covered with respect to buildings and improvements similar in construction, location and use as those in the Condominium, including without limitation, builder’s risk coverage for improvements under construction; and
(4) Such other risks of physical damage as the Board may from time to time deem appropriate.
(c) Other Provisions – The insurance shall include, without limitation, the following provisions:
(1) Waivers by the insurer of rights of subrogation, other than those based on fraud or criminal acts, against the Association and the Townhouse Owners;
(2) That the insurance shall not be affected or diminished by reason or any other insurance carried by a Townhouse Owner or mortgagee of a Townhouse;
(3) That the insurance shall not be affected or diminished by any act or neglect of any Townhouse Owner or any occupants or by owners of any improvements when such act or neglect is not within the control of the Association.
(4) That the insurance shall not be affected or diminished by failure of any Townhouse Owner or any occupants or by owners of any improvements to comply with any warranty or condition when such failure to comply is not within the control of the Association.
(5) Such deductible as to loss, but not co-insurance features, as the Board of Governors in its sole judgment deems prudent and economical.
(6) That the insurance may not be cancelled or substantially modified (except for the addition of property or increases in amounts of coverage) without at least thirty (30) days; prior written notice to the named insured, and to all mortgages of Townhouses in question;
(7) Provisions for identification of mortgagees of Townhouses and for the allocation of their several interests to specific Townhouses;
(8) The standard mortgage clause, except that any loss otherwise payable to named mortgagees shall be payable in the manner set forth in subsection (10) hereof;
(9) Adjustment of loss shall be made with the Board of Governors;
(10) The named insured shall be the Association for the benefit of the Townhouse Owners; and
(11) An agreed amount endorsement.
(d) Evidence of Insurance – Certificate of insurance signed by an agent of the insurer together with copies of all endorsements thereto and proof of payment of premiums, shall be delivered to all mortgagees of Townhouses at the times such policies are issued, and at least ten (10) days prior to the expiration of any then current policies.
(e) Definition – As used in this Section, the term “all buildings and improvements” shall also include, without limitation, all common areas and facilities and personal property of the Association, and all Townhouses including the standard partition walls, fixtures and installations initially installed by the Declarant, and may exclude fixtures, alterations, installations or additions situated within a portion of the Condominium used exclusively by an individual Townhouse Owner and made or acquired after the initial conveyance of the Townhouse by the Declarant.
Section 2 – Liability Insurance
The Board shall obtain and maintain public liability insurance for bodily injury an property damage in such limits as the Board of Governors may from time to time determine (provided, however, that such liability insurance shall provide coverage of at least $1,000,000 for bodily injury and property damage for any single occurrence), insuring the Association, the Board of Governors and the officers of the Association, with respect to their liability arising from operation, maintenance or repair of the Condominium which is the responsibility of the Association, including without limitation liability arising from ownership of any Townhouse. Such liability insurance shall also cover cross-liability claims between the Townhouse Owners and the Association. The Board of Governors shall review such limits at least annually. The insurance provided under this Section shall include without limitation the following provisions:
(a) That the insurance shall not be affected or diminished by any act or neglect of any Townhouse Owner or any occupants or by owners of any improvements when such act or neglect is not within the control of the Association;
(b) That the insurance shall not be affected or diminished by failure of any Townhouse Owner or any occupants or by owners of any improvements to comply with any warranty or condition when such failure to comply is not within the control of the Association; and
(c) Waivers by the insurer of rights of subrogation, other than those based on fraud or criminal acts, against the Association or the Townhouse Owners.
Section 1 – Duty to Repair or Restore
Any portion of the Condominium including the buildings erected within the Condominium, damaged or destroyed shall be repaired or restored promptly by the Association, as provided in this Article, subject to the provisions of Chapter 183A, Section 17, of the General Laws of Massachusetts as the same may be amended from time to time.
Section 2 – Estimate of Cost
Promptly after damage to or destruction of some portion of the Condominium, and thereafter as often as it deems advisable, the Board of Governors shall obtain reliable and detailed estimates of the cost of repair or restoration. If such cost in the opinion of the Board of Governors may exceed $5,000, the Board of Governors may retain the services of an architect, engineer or construction consultant to assist in the determination of such estimates and in the supervision of repair and restoration.
Section 3 – Collection of Construction Funds
Construction funds may consist of insurance proceeds, condemnation awards, proceeds of assessments against Townhouse Owners, payments by Townhouse Owners for damage to or destruction of improvements, and other funds received on account of or arising out of injury or damage to the Condominium.
(a) Insurance Proceeds – The Board of Governors shall adjust losses under physical damage insurance policies of the Association. Insurance proceeds from losses in excess of $25,000 shall be payable to the Board of Governors as trustees.
(b) Assessments Against Owners – If the insurance proceeds are insufficient to affect the necessary repair or restoration of the common areas and facilities, such deficiency shall be charged against all Townhouse Owners as a common expense. The proceeds of assessments for such common expenses shall be paid by the Board of Governors directly to the vendor making the repairs or restoration if the loss is less than $25,000 and shall be paid to the Board of Governors as trustees if in excess of $25,000.
(c) Payments by Owners - Payments received from Townhouse Owners pursuant to Section 5(a)(2) of this Article shall be paid to and disbursed by the Board of Governors as trustees if the loss is in excess of $25,000 and otherwise disbursed by the Board of Governors directly for the repairs to whoever makes the repairs.
(d) Payments by Others – Any other funds received on account of or arising out of injury or damage to the Condominium shall be paid to and disbursed by the Board of Governors as trustees if the loss is in excess of $25,000 and otherwise the funds shall be administered directly by the Board of Governors. Except after a determination not to repair or restore pursuant to Section 6(e) of this Article, all insurance proceeds or other funds received by the Board of Governors as trustees shall be dedicated solely to the repair or restoration of the loss as provided herein; and any application of said funds or proceeds by the Board or Governors as trustees on account thereof, shall be prior to the applicator of such proceeds for any other purpose.
Section 4 – Plans and Specifications
Any repair or restoration must be either
(a) substantially in accordance with the architectural and engineering plans and specifications for the original buildings, and shall also include such improvements and fixtures as may have been installed by any particular Townhouse Owner and as to which payment for such repair or reconstruction is forthcoming, or
(b) according to plans and specifications approved by the Board of Governors and by a majority in beneficial interest of the Townhouse Owners and the holders of first mortgages encumbering fifty-one percent (51%) of the Townhouse subject to mortgages, and if the damaged property includes buildings, by all the Townhouse Owners thereof, which approvals shall not be withheld unreasonably.
Section 5 – Townhouses
Damage or destruction of improvements situated within a Townhouse shall be repaired or restored, except after a determination not to repair or restore pursuant to Section 6(e) of this Article, as follows:
(a) Construction funds
(1) To the extent that such damage or destruction is covered by insurance of the Association, the proceeds of such insurance or award shall be made available for the repair or restoration of the Townhouse.
(2) To the extent that such damage or destruction is not covered by insurance of the Association, such Townhouse Owner shall be responsible for the cost of repair and restoration.
(3) If the damage is only to those parts of a Townhouse for which the responsibility of maintenance and repair is that of a Townhouse Owner, then the Townhouse Owner shall be responsibility for the cost of reconstruction and repair after casualty, unless the damage is specifically covered by the insurance purchased by the Association, in which event the Association shall be responsible for said costs.
(b) Performance of Work and Payment
If there is damage to or destruction of all or part of the Condominium and the combined damage or destruction of all affected property for which the Association is responsible to insure and the common areas and facilities exceeds $5,000, the repair or restoration of the property shall be effected by the Association to the extent that construction funds as described in subsection (a) (1) of this Section are available and to the extent that the Townhouse Owners make payment as hereafter provided. Each Townhouse Owner shall pay to the Board of Governors such sum as is necessary, according to the estimate of cost described in Section 2 of this Article, to cover any part of the cost of repair or restoration which is not covered by insurance of the Association or by a condemnation award not specifically allocated to the Townhouse Owner.
Section 6 – Disbursement of Construction Funds
The Board of Governors as trustees may deduct from the construction funds their actual costs and expenses and a reasonable fee for the performance of their duties, and shall disburse the balance of the construction funds in the following manner:
(a) Damage or Destruction not exceeding $25,000 shall be administered by the Board of Governors.
(b) Payment for Repair or Restoration exceeding $25,000 shall be administered by the Board of Governors as trustees. The Board of Governors as trustees shall apply such balance to pay directly, and to reimburse the Association for the payment of, the costs of repair or restoration of such Townhouses and common areas and facilities, including the cost of temporary repairs for the projection of such Townhouses and common areas and facilities pending the completion of permanent repairs and restoration, upon written request of the Association in accordance with Section 7(a) of this Article, and upon presentation of an architect’s certificate stating that the work represented by any such payment has been completed satisfactorily.
(c) Contribution by Owners
The Association shall maintain a separate account as to each Townhouse with respect to payments by a Townhouse Owner pursuant to Section 5(a)(2) of this Article, and expenditures of such payments. General expenses of administration, such as deductions by the Board of Governors as trustees for their costs, expenses and fees, shall be charged against the Association’s construction funds and against Townhouse Owners’ payments pursuant to Section 5(a)(2) of this Article, in proportion to the amounts of each. All portions of such payments by Townhouse Owners not expended as herein provided shall be refunded to the Townhouse Owners, and the mortgagees of the Townhouses as their interests may appear.
(d) Surplus Funds
If, after payment of all repairs and restoration, and the refund of any excess payments by Townhouse Owners pursuant to subsection (c) of this Section, there remain any surplus funds, shall be paid to the Townhouse Owners in proportion to their contributions resulting from assessments levied against them pursuant to Section 3(c) of this Article; provided, however, that no Townhouse Owner shall receive a sum greater than that actually contributed by him. Any surplus remaining after such payments shall be paid to the Association and shall be part of its general income.
(e) Determination Not to Repair or Restore
Subject to the provisions of Chapter 183A, Section 17, of the General Laws of Massachusetts, if there is destruction of the improvements in the Condominium and seventy-five percent (75%) in interest of the Townhouse Owners vote not to proceed with repair or restoration, any balance of construction funds, after the refund of any payments by Townhouse Owners pursuant to subsections (c) and (d) of this Section, shall be disbursed in the proportion that the beneficial interest appurtenant to the Townhouse(s) owned by each Townhouse Owner bears to the total percentage of beneficial interest held by Townhouse Owners in the Condominium except for those Townhouses owned by the Association and in accordance with the fair market value of the respective Townhouses as determined by arbitration. In the event of dispute as to the percentage of destruction, that issue shall be submitted to arbitration in accordance with the rules of the American Arbitration Association.
Section 7 – Certificates
The Board of Governors as trustees, in the event that any payments are to be made to a Townhouse Owner or mortgagee, may rely on an Attorney’s Certificate of Title based upon a search of the records of the Worcester District Registry of Deeds from the date of the recording of the original Master Deed, stating the name of the Townhouse Owner and the mortgagees.
Section 1 – Mortgage of Townhouses
A Townhouse Owner who mortgages his Townhouse shall notify the Board of Governors of the name and address of the mortgagee. The Board of Governors shall maintain such information in a book entitled “Mortgage of Townhouses.”
Section 2 – Listed Mortgagee
As used in these By-Laws, “Listed Mortgagee: shall mean a lender holding a first mortgage of record on a Townhouse of which the owner affected has given the notice required in Section 1 of this Article. Such a mortgagee shall remain a Listed Mortgagee until the Board of Governors receives written notice from the mortgagee of withdrawal of the listing or the mortgage is discharged of record.
Section 3 – Unpaid Common Charges
The Board of Governors, whenever so requested in writing by a mortgagee of a Townhouse, shall promptly report any then unpaid common charges due from, or any default by, the Townhouse Owner of the mortgaged Townhouse.
Section 4 – Notice of Default
The Board of Governors when giving notice to a Townhouse Owner of a default in paying common charges or other default shall send a copy of such notice to each holder of a mortgage covering such Townhouse whose name and address has theretofore been furnished to the Board of Governors.
Section 5 – Examination of Books
Each Townhouse Owner and each mortgagee of a Townhouse shall be permitted to examine books of account of the Association at reasonable times on business days.
In the event that a Townhouse shall be acquired by the Association, the Townhouse Owners shall be deemed to have waived all rights of partition with respect to such Townhouse.
The By-Laws of the Association may be modified or amended by the affirmative vote of sixty-six and two-thirds percent (66 2/3%) (or any larger percentage if such modification or amendment affects a provision requiring a larger percentage) in beneficial interest of all Members of the Association, present in person or by proxy, at a meeting of such Members of the Association duly called and held for such purpose.
The written consent of the holders of a majority of the first mortgages on mortgaged Townhouses shall be required for an amendment materially changing any provisions which establish, provide for, govern or regulate any of the following:
(a) voting rights;
(b) assessments, assessment liens, or subordination of assessment liens;
(c) reserves for maintenance, repair and replacement of common areas;
(d) responsibility for maintenance and repairs;
(e) reallocation of interests in the common areas, or rights to their use;
(f) convertibility of units into common areas or vice versa;
(g) expansion or contraction of the Condominium, or the addition, annexation or withdrawal of property to or from the Condominium;
(h) insurance or fidelity bonds;
(i) leasing of Townhouses;
(j) imposition of any restrictions on a Townhouse owner’s right to sell or transfer his or her unit;
(k) restoration or repair of the Condominium after a hazard damage or partial condemnation in a manner other than that specified in the By-Laws;
(l) termination of the legal status of the Condominium after substantial destruction or condemnation occurs; or
(m) Provisions which expressly benefit mortgage holders, insurers or guarantors.
In case any of the By-Laws of the Association are in conflict with the provisions of any statute, the Articles of the Association or the Master Deed, the provisions of such statute, Articles of the Association or Master Deed, as the case may be, shall control.
Section 1 – Invalidity
The invalidity of any part of the By-Laws of the Association shall not impair or affect in any manner the validity, enforceability or effect of the balance of the By-Laws of the Association.
Section 2 – Captions
The captions herein are inserted only as a matter of convenience and for reference, and in no way define, limit or describe the scope of the By-Laws of the Association or the intent of any provisions thereof.
Section 3 – Gender
The use of any gender in the By-Laws of the Association shall be deemed to refer to all other genders and the use of the singular shall be deemed to include the plural and vice versa, whenever the context so requires.
Section 4 – Waiver
No restriction, condition, obligation, or provision contained in the By-Laws of the Association shall be deemed to have been abrogated or waived by reason of any failure to enforce the same, irrespective of the number of violations or breaches thereof which occur.
Paul Revere Village Association ByLaws