§514B-104 
Association; powers.  (a)  Except as provided in
section 514B‑105, and subject to the provisions of the declaration and
bylaws, the association, even if unincorporated, may:



(1)  Adopt and amend the declaration, bylaws, and
rules and regulations;



(2)  Adopt and amend budgets for revenues,
expenditures, and reserves and collect assessments for common expenses from
unit owners, subject to section 514B‑148;



(3)  Hire and discharge managing agents and other
independent contractors, agents, and employees;



(4)  Institute, defend, or intervene in litigation or
administrative proceedings in its own name on behalf of itself or two or more
unit owners on matters affecting the condominium.  For the purposes of actions
under chapter 480, associations shall be deemed to be "consumers";



(5)  Make contracts and incur liabilities;



(6)  Regulate the use, maintenance, repair,
replacement, and modification of common elements;



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



(8)  Acquire, hold, encumber, and convey in its own
name any right, title, or interest to real or personal property; provided that:



(A)  Designation
of additional areas to be common elements or subject to common expenses after
the initial filing of the declaration or bylaws shall require the approval of
at least sixty-seven per cent of the unit owners;



(B)  If
the developer discloses to the initial buyer in writing that additional areas
will be designated as common elements whether pursuant to an incremental or
phased project or otherwise, the requirements of this paragraph shall not apply
as to those additional areas; and



(C)  The
requirements of this paragraph shall not apply to the purchase of a unit for a
resident manager, which may be purchased with the approval of the board;



(9)  Subject to section 514B‑38, grant
easements, leases, licenses, and concessions through or over the common
elements and permit encroachments on the common elements;



(10)  Impose and receive any payments, fees, or charges
for the use, rental, or operation of the common elements, other than limited
common elements described in section 514B‑35(2) and (4), and for services
provided to unit owners;



(11)  Impose charges and penalties, including late fees
and interest, for late payment of assessments and levy reasonable fines for
violations of the declaration, bylaws, rules, and regulations of the
association, either in accordance with the bylaws or, if the bylaws are silent,
pursuant to a resolution adopted by the board that establishes a fining procedure that states the
basis for the fine and allows an appeal to the board of the fine with notice
and an opportunity to be heard and providing that if the fine is paid, the unit
owner shall have the right to initiate a dispute resolution process as provided
by sections 514B-161, 514B-162, or by filing a request for an administrative
hearing under a pilot program administered by the department of commerce and
consumer affairs;



(12)  Impose reasonable charges for the preparation and
recordation of amendments to the declaration, documents requested for resale of
units, or statements of unpaid assessments;



(13)  Provide for cumulative voting through a provision
in the bylaws;



(14)  Provide for the indemnification of its officers,
board, committee members, and agents, and maintain directors' and officers'
liability insurance;



(15)  Assign its right to future income, including the
right to receive common expense assessments, but only to the extent section
514B‑105(e) expressly so provides;



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



(17)  Exercise all other powers that may be exercised
in this State by legal entities of the same type as the association, except to
the extent inconsistent with this chapter;



(18)  Exercise any other powers necessary and proper
for the governance and operation of the association; and



(19)  By regulation, subject to sections 514B‑146,
514B‑161, and 514B‑162, require that disputes between the board and
unit owners or between two or more unit owners regarding the condominium be
submitted to nonbinding alternative dispute resolution in the manner described
in the regulation as a prerequisite to commencement of a judicial proceeding.



(b)  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 subsection (a)(11);



(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, provided that a unit owner shall be responsible for the
conduct of the owner's tenant and for any fines levied against the tenant or
any legal fees incurred in enforcing the declaration, bylaws, or rules and
regulations of the association against the tenant; 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, including eviction, or which the association could lawfully
have exercised directly against the unit owner, or both.



(c)  The rights granted under subsection (b)(3)
may only be exercised if the tenant or unit owner fails to cure the violation
within ten days after the association notifies the tenant and unit owner of
that violation; provided that no notice shall be required when the breach by
the tenant causes or threatens to cause damage to any person or constitutes a
violation of section 521-51(1) or 521-51(6).



(d)  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. [L 2004, c 164, pt of §2; am L 2005, c 155,
§2; am L 2006, c 273, §14]