KRS 381.9167: Powers of unit owners' association -- Emergency assessments.

(1) Except as provided in subsection (2) of this section and subject to the provisions of

the declaration, the association, even if unincorporated, may:

(a) Adopt and amend bylaws, rules, and regulations;

(b) Adopt and amend budgets for revenues, expenditures, and reserves, and

collect assessments for common expenses from unit owners;

(c) Hire and discharge managers and other employees, agents, and independent

contractors;

(d) Institute, defend, or intervene in litigation or administrative proceedings in its

own name on behalf of itself or two (2) or more unit owners on matters

affecting the condominium;

(e) Make contracts and incur liabilities;

(f) Regulate the use, maintenance, repair, replacement, and modification of

common elements, and authorize access to any unit for those purposes;

(g) Cause additional improvements to be made as a part of the common elements;

(h) Acquire, hold, encumber, and convey in its own name any right, title, or

interest to real or personal property, except that common elements may o nly

be conveyed or subjected to a lien or security interest as provided in KRS

381.9185;

(i) Grant easements, leases, licenses, and concessions through or over the

common elements;

(j) Impose and receive payments, fees, or charges:

1. For the use, rental, or operation of the common elements other than

limited common elements described in KRS 381.9127(2), (4), and (6);

2. For services provided to unit owners; and

3. To cover emergency or extraordinary circumstances affecting the

condominium or any part thereof;

(k) Impose charges for late payment of assessments and, after notice and an

opportunity to be heard, levy reasonable fines for violations of the declaration,

bylaws, and rules and regulations of the association that may include

reimbursement to the association of reasonable fees and costs, including

attorney fees, associated with the enforcement of this paragraph;

(l) Impose reasonable charges for the preparation and recordation of amendments

to the declaration, certificates required by KRS 381.9203, or statements of

unpaid assessments, except that:

1. Any fee imposed for the preparation of a certificate shall not exceed the

lesser of two hundred twenty-five dollars ($225) or eighty percent (80%)

of the current monthly assessment fee charged that unit by the

association; and

2. No more than fifty dollars ($50) shall be charged to update a previous

certificate issued in the same fiscal year of the association;

(m) Provide for the indemnification of its officers and executive board and

maintain directors' and officers' liability insurance;

(n) Assign its right to future income, including the right to receive common

expense assessments, for the purpose of securing fin ancial accommodations

obtained by the association to perform its duties and obligations under the

declaration or KRS 381.9101 to 381.9207;

(o) Exercise any other powers conferred by the declaration or bylaws;

(p) Exercise all other powers that may be exerc ised in this Commonwealth by

legal entities of the same type as the association; and

(q) Exercise any other powers necessary and proper for the governance and

operation of the association.

(2) The declaration shall not impose limitations on the power of th e association to deal

with the declarant that are more restrictive than the limitations imposed on the

power of the association to deal with other persons.

(3) Notwithstanding the declaration, an association may impose an emergency

assessment against any unit affected to:

(a) Comply with a judicial order; or

(b) Repair an emergency condition of any common structural, utility, or

mechanical component which has made, or is in imminent danger of making,

any unit, common element, or limited common element unsaf e, uninhabitable,

or uninsurable, provided the association is first provided an opinion affixed

with a professional seal from a professional engineer or licensed architect

stating the emergency condition.

(4) The emergency assessment provided for in subsec tion (3) of this section shall be

made upon the vote of:

(a) A simple majority of unit owners present at a special called meeting. If the

declaration does not provide for special meetings, one (1) may be called under

this subsection to address the issues identified in subsection (3) of this section;

or

(b) Seventy-five percent (75%) of the members of the association's executive

board.

Any emergency assessment made under this subsection may be reduced or

rescinded by a vote of a simple majority of total unit owners at a special meeting.