Page:United States Statutes at Large Volume 77.djvu/488

 456

PUBLIC LAW 88-218-DEC. 21, 1963

[77 STAT.

ing practice and shall be audited at least once a year by an auditor outside the organization. SEC. 16. COMMON PROFITS, CONTRIBUTIONS FOR PAYMENT OF COMMON EXPENSES OP ADMINISTRATION AND MAINTENANCE.—(a) The

D.c. Code 471551 note.

common profits of the property shall be distributed among and the common expenses shall be charged to the unit owners according to the percentages established by section 6 of this Act: Provided, That for purposes of the application of the District of Columbia Income and Franchise Tax Act of 1947 (61 Stat. 331), as amended, the council ^-f co-owuers shall, in accordance with the provisions of said Act, be regarded as constituting an imincorporated business and shall file returns and pay taxes upon the taxable income derived from the common areas without regard to the "common profits" as defined in this Act. (b) All co-owners are bound to contribute in accordance with the said percentages toward the expenses of administration and of maintenance and repairs of the general common elements, and, in proper case, of the limited common elements of the building and toward any other expenses lawfully agreed upon by the council of co-owuiers. (c) No owner shall be exempt from contributing toward such common expenses by waiver of the use or enjoyment of the common elements both general and limited, or by the abandonment of the condominium unit belonging to him. (d) Said contribution may be determined, levied, and assessed as a lien on the first day of each calendar or fiscal year, and may become and be due and payable in such installments as the bylaws may provide, and said bylaws may further provide that upon default in the payment of any one or more of such installments, the balance of said lien may be accelerated at the option of the manager, board of directors, or of management and be declared due and payable in full. SEC. 17. PRIORITY OF LIENS.—The lien determined, levied and assessed in accordance with section 16 of this Act shall have preference over any other assessments, liens, judgments, or charges of whatever nature, except the following: (a) Real estate taxes, other taxes arising out of or resulting from the ownership, use, or operation of the common areas, special assessments, including, but not limited to, special assessments for sewer mains, water mains, curbs, gutters, sidewalks, alleys, paving of streets, roads and avenues, removal or abatement of nuisances, and special assessments levied in connection with condemnation proceedings instituted by the District of Columbia, and water charges and sanitary sewer service charges levied on the condominium unit, and judgments, liens, preferences, and riorities for any tax assessed against a co-owner by the Ignited tates or the District of Columbia or due from or payable by a co-owner to the United States or the District of Columbia, and judgments, liens, preferences, and priorities in favor of the District of Columbia for assessments or charges referred to in this subparagraph. (b) The liens of any deeds of trust, mortgage instruments, or encumbrances duly recorded on the condominium unit prior to the assessment of the lien thereon or duly recorded on said unit after receipt of a written statement from the manager, board of directors, or of management reflecting that payments on said lien were current as of the date of recordation of said deed.of trust, mortgage instrument, or encumbrance. Upon a voluntary sale or conveyance of a condominium unit all unpaid assessments against a grantor co-owner for his pro rata share of the expenses to which section 16 of this Act refers shall first be

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