{"data":{"id":"us-ky/krs-381.797","jurisdiction":"us-ky","citation":"KRS 381.797","heading":"Elements of assessments for each lot -- Notice of charges -- Special","body":"assessments -- Claimed breach of fiduciary duty -- Annual budget.\n(1) In addition to the provisions of the declaration, bylaws, rules, or regulations of the\nassociation the assessment for each lot shall consist of:\n(a) The allocated common expense liability;\n(b) Fines for violations levied by the board;\n(c) Individual assessments for utility services that are imposed or levied in\naccordance with the declaration;\n(d) Costs of maintenance, repair, or replacement incurred due to the willful or\nnegligent act of an owner or occupant of a lot or the family, tenants, guests, or\ninvitees of an owner or occupant of a lot; and\n(e) Costs or charges associated with the enforcement of the declarations, bylaws,\nrules and regulations of the association, and any provision of this section,\nincluding but not limited to reasonable attorney fees, costs, and other expense.\n(2) Prior to imposing a charge for fines, damages, or an individual assessme nt pursuant\nto this section, the board shall give the owner a written notice and the opportunity to\nbe heard.\n(3) In addition to all other assessments which are authorized in the declaration, the\nboard of an association shall have the power to levy a speci al assessment against lot\nowners:\n(a) If the board finds that the purpose of the assessment is in the best interests of\nthe association; and\n(b) The proceeds of the assessment are used primarily for the maintenance and\nupkeep of the common areas and other such areas of association responsibility\nexpressly provided for in the declaration, including capital expenditures.\n(4) After termination of the declarant control period, an affirmative vote of a majority\nof the full board shall be required to approve a special assessment subject to the\nfollowing provisions:\n(a) Within thirty (30) days after board passage of a special asses sment, a meeting\nof the association shall be held to allow owners an opportunity to rescind or\nreduce the special assessment; and\n(b) A majority of the total number of lots of the planned community cast in\nperson or by proxy shall be required to rescind or  reduce the special\nassessment.\n(5) No director or officer of the association shall be liable for failure to perform his or\nher fiduciary duty if a special assessment for the funds necessary for the director or\nofficer to perform his or her fiduciary duty is rescinded or reduced by the owners\npursuant to this section. The association shall indemnify such director or officer\nagainst any damage resulting from a claimed breach of fiduciary duty arising\ntherefrom.\n(6) The failure of an owner to pay an assessmen t or special assessment allowed under\nthis section shall provide the association with the right to deny the owner access to\nany or all of the common areas, except that access to any road within the planned\ncommunity that is a common area and provides direct access to the owner's lot shall\nnot be denied.\n(7) The board shall adopt an annual budget. The board shall:\n(a) Provide a budget to all owners within thirty (30) days after the adoption;\n(b) If the adopted budget contains an increase of greater than fift een percent\n(15%) from the previous year's budget, provide notice to the members of a\nspecial meeting to consider member ratification of the budget;\n(c) Hold a meeting within forty -five (45) days after the summary has been\nprovided to members;\n(d) Deem the budget ratified, whether or not a quorum is present, unless at that\nmeeting a majority of all owners, or any larger vote specified in the\ndeclaration, reject the budget; and\n(e) If the budget is rejected, continue the existing budget until such time as a\nsubsequent budget is adopted by the board in conformity with this subsection.\n(8) The provisions of this section shall override any limitation on the amount of\nassessments or the amount of annual increases that may be contained in existing\ndeclarations, bylaws, rules, or regulations of a planned community.","path":["KRS Chapter 381"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53668","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:11Z","sha256":"7875faf953cb0c3f75557d9f1ff9cd2df7c97603536f32f35076338b266c6382","source_id":"us-ky","stale":false,"prev":"us-ky/krs-381.796","next":"us-ky/krs-381.798"},"notice":"GroundRules: Original legal text. Not legal advice."}