94.021; 2001 c.756 �32; 2019 c.69 �10] ����� 100.155 Variable property; uses and restrictions. (1) If by the termination date specified in the declaration there is any remaining variable property:

94.021; 2001 c.756 �32; 2019 c.69 �10]

����� 100.155 Variable property; uses and restrictions. (1) If by the termination date specified in the declaration there is any remaining variable property:

����� (a) Any property designated nonwithdrawable variable property becomes part of the common elements and any interest in the property held for security purposes is automatically extinguished by reclassification.

����� (b) Any property designated withdrawable variable property is automatically withdrawn from the condominium as of the termination date.

����� (c) Subject to paragraph (d) of this subsection, the association may record in the office of the recording officer in the county in which the condominium is located:

����� (A) For property reclassified under paragraph (a) of this subsection, a �Statement of Reclassification of Variable Property� stating that the remaining nonwithdrawable variable property has been reclassified to common elements pursuant to paragraph (a) of this subsection.

����� (B) For property withdrawn under paragraph (b) of this subsection, a �Statement of Withdrawal of Variable Property from Condominium� stating that remaining withdrawable variable property has been withdrawn from the condominium pursuant to paragraph (b) of this subsection.

����� (d) A statement described in paragraph (c) of this subsection must:

����� (A) Include the name of the condominium, a reference to the recording index numbers and date of recording of the declaration, the plat creating the affected variable property and any applicable supplemental declaration.

����� (B) Include a description of the reclassified or withdrawn variable property complying with ORS 93.600.

����� (C) Be executed by the association and acknowledged.

����� (e) After recording a statement under paragraph (c) of this subsection, the association shall provide a copy of the recorded statement to the county surveyor. The original plat may not be changed or corrected after it is recorded with the county clerk.

����� (2)(a) Unless expressly prohibited by the declaration, any variable property automatically withdrawn from the condominium under subsection (1)(b) of this section or voluntarily withdrawn under ORS 100.150 (1)(b) may be later annexed to the condominium by the recording of a supplemental declaration and plat in accordance with ORS 100.120 (3) if such action is first approved by at least 75 percent of all voting rights in the manner required for an amendment to the declaration.

����� (b) The supplemental declaration and plat shall be executed by the association and acknowledged. Except for the termination date, the supplemental declaration must comply with ORS 100.120 (1) and (2) and must state that the annexation was approved by at least 75 percent of all voting rights.

����� (3)(a) Unless expressly prohibited by the declaration and notwithstanding the termination date, the association may, with respect to any variable property automatically reclassified, exercise any rights previously held by the declarant. The exercise of any right must first be approved by at least a majority of all voting rights. All other actions relating to such reclassified general common elements are regulated and governed in like manner as other general common elements of the condominium.

����� (b) If a supplemental declaration and plat is required for any action, the plat must be executed by the association and must comply with the requirements of this chapter as to a supplemental declaration and the recording of plats.

����� (4) Title to any additional units created under subsection (3) of this section automatically vests in the association upon the recording of a supplemental declaration and plat. The board of directors acting on behalf of the association has the power to hold, convey, lease, encumber or otherwise deal with a unit or any interest therein in like manner as other property owned by the association.

����� (5) The county clerk may charge a fee for recording a statement under this section according to provisions of ORS 205.320 (1)(d).

����� (6) The county assessor shall cause the assessment and tax rolls to reflect the status of any variable property affected by automatic property reclassification under subsection (1)(a) of this section or automatically withdrawn under subsection (1)(b) of this section. [Formerly 94.022; 2001 c.756 �33; 2009 c.641 �22; 2015 c.27 �9; 2019 c.69 �40]

RIGHTS AND DUTIES OF DECLARANT

����� 100.170 Easement held by declarant. Subject to the provisions of the declaration, a declarant has an easement through the common elements as may be reasonably necessary for the purpose of discharging any obligation of the declarant or exercising any special declarant right, whether arising under the provisions of this chapter or reserved in the declaration or bylaws. [Formerly 94.066]

����� 100.175 Reserve account for maintaining, repairing and replacing common elements; reserve study; information required; maintenance plan. (1) The declarant, on behalf of the association of unit owners, shall:

����� (a) Conduct an initial reserve study as described in subsection (3) of this section;

����� (b) Prepare an initial maintenance plan as described in subsection (4) of this section; and

����� (c) Establish a reserve account if required under subsection (2) of this section.

����� (2)(a) An association of unit owners shall establish a reserve account to fund:

����� (A) Major maintenance, repair or replacement of those common elements or other property to be maintained by the association under the declaration or bylaws, all or part of which will normally require major maintenance, repair or replacement in more than one and less than 30 years;

����� (B) Exterior painting if the common elements or other property required to be maintained by the association under the declaration or bylaws include exterior painted surfaces; and

����� (C) Any other items for which a reserve is required under the declaration or bylaws.

����� (b) The reserve account required under paragraph (a) of this subsection need not include:

����� (A) Items that can reasonably be funded from the general budget or other funds or accounts of the association; or

����� (B) A reserve for limited common elements for which maintenance and replacement are the responsibility of one or more, but less than all, unit owners under the provisions of the declaration or bylaws.

����� (c) The reserve account must be established in the name of the association of unit owners. The association is responsible for administering the account and for making periodic payments into the account.

����� (d) The reserve portion of the initial assessment determined by the declarant must be based on:

����� (A) The reserve study described in subsection (3) of this section;

����� (B) In the case of a conversion condominium, the statement described in ORS 100.655 (1)(h); or

����� (C) Other reliable information.

����� (e) The reserve account must be funded by assessments against the individual units for the purposes for which the reserve account is established.

����� (f) The assessment under this subsection accrues from the time of the conveyance of the first individual unit assessed as provided in ORS 100.530.

����� (3)(a) The board of directors of the association shall annually determine the reserve account requirements by conducting a reserve study or reviewing and updating an existing study using the following information:

����� (A) The starting balance of the reserve account for the current fiscal year;

����� (B) The estimated remaining useful life of each item for which reserves are or will be established, as of the date of the study or review;

����� (C) The estimated cost of maintenance and repair and replacement at the end of the useful life of each item for which reserves are or will be established;

����� (D) The rate of inflation during the current fiscal year; and

����� (E) Returns on any invested reserves or investments.

����� (b) Subject to subsection (10) of this section, after a review of the reserve study or the reserve study update, the board may, without any action by the unit owners:

����� (A) Adjust the amount of payments in accordance with the study or review; and

����� (B) Provide for other reserve items that the board of directors, in its discretion, may deem appropriate.

����� (c) The reserve study must:

����� (A) Identify all items for which reserves are or will be established;

����� (B) Include the estimated remaining useful life of each item, as of the date of the reserve study; and

����� (C) Include for each item, as applicable, an estimated cost of maintenance and repair and replacement at the end of the item�s useful life.

����� (4)(a) The board of directors shall prepare a maintenance plan for the maintenance, repair and replacement of all property for which the association has maintenance, repair or replacement responsibility under the declaration or bylaws or this chapter. The maintenance plan must:

����� (A) Describe the maintenance, repair and replacement to be conducted;

����� (B) Include a schedule for the maintenance, repair and replacement;

����� (C) Be appropriate for the size and complexity of the maintenance, repair and replacement responsibility of the association; and

����� (D) Address issues that include but are not limited to warranties and the useful life of the items for which the association has maintenance, repair or replacement responsibility.

����� (b) The board of directors shall review and update the maintenance plan described under this subsection as necessary.

����� (5)(a) Except as provided in paragraph (b) of this subsection, the reserve study requirements under subsection (3) of this section and the maintenance plan requirements under subsection (4) of this section do not apply to a condominium consisting of one or two units, excluding units used for parking, storage or other uses ancillary to a unit:

����� (A) After the sale of the first unit to a person other than a successor declarant, if the condominium is created on or after September 27, 2007; or

����� (B) If the condominium was created before September 27, 2007, notwithstanding any requirement in the declaration or bylaws.

����� (b) The reserve study requirements under subsection (3) of this section and the maintenance plan requirements under subsection (4) of this section apply to a flexible condominium or a staged condominium created on or after September 27, 2007, if the condominium might in the future consist of more than two units.

����� (6)(a) If the declaration or bylaws require a reserve account, the reserve study requirements of subsection (3) of this section and the maintenance plan requirements of subsection (4) of this section first apply to the association of a condominium recorded prior to October 23, 1999:

����� (A) Upon adoption of a resolution by the board of directors in accordance with the bylaws providing that the requirements of subsections (3) and (4) of this section apply to the association; or

����� (B) Upon submission to the board of directors of a petition signed by a majority of unit owners mandating that the requirements of subsections (3) and (4) of this section apply to the association.

����� (b) The reserve study and the maintenance plan must be completed within one year of the date of adoption of the resolution or submission of the petition to the board of directors.

����� (7)(a) Except as provided in paragraph (b) of this subsection, the reserve account is to be used only for the purposes for which reserves have been established and is to be kept separate from other funds.

����� (b) After the individual unit owners have assumed administrative responsibility for the association under ORS 100.210, if the board of directors has adopted a resolution, which may be an annual continuing resolution, authorizing the borrowing of funds:

����� (A) The board of directors may borrow funds from the reserve account to meet high seasonal demands on the regular operating funds or to meet unexpected increases in expenses.

����� (B) Not later than the adoption of the budget for the following year, the board of directors shall adopt by resolution a written payment plan providing for repayment of the borrowed funds within a reasonable period.

����� (8) The reserve account is subject to the requirements and restrictions of ORS 100.480 and any additional requirements or restrictions imposed by the declaration, bylaws or rules of the association of unit owners.

����� (9) Assessments paid into the reserve account are the property of the association of unit owners and are not refundable to sellers of units.

����� (10)(a) Except as provided under paragraph (b) of this subsection, unless the board of directors under subsection (3) of this section determines that the reserve account will be adequately funded for the following year, the board of directors or the owners may not vote to eliminate funding a reserve account required under this section or under the declaration or bylaws.

����� (b) Following the turnover meeting described in ORS 100.210, on an annual basis, the board of directors, with the approval of all owners, may elect not to fund the reserve account for the following year. [Formerly 94.072; 1997 c.816 �7; 1999 c.677 �44; 2001 c.756 �34; 2003 c.569 �27; 2005 c.543 �2; 2007 c.409 �23; 2009 c.641 �23; 2011 c.532 �7; 2017 c.111 �3; 2019 c.69 �41]

WARRANTIES ON NEW UNITS

����� 100.185 Express warranties; form; exclusion of implied warranties; exemption for consumer products; claims. (1) The declarant shall expressly warrant against defects in the plumbing, electrical, mechanical, structural, and all other components of the newly constructed units and common elements. Such warranty:

����� (a) Shall exist on a unit and the related limited common elements for not less than one year from the date of delivery of possession of that unit by the declarant to the first unit owner other than the declarant;

����� (b) Shall exist on the general common elements for not less than one year from the initial conveyance of title to a unit by the declarant to a unit owner other than the declarant, or, in the case of a staged or a flexible condominium, for not less than one year from such initial conveyance of title or completion of the construction of the specific general common element, whichever is later;

����� (c) Shall be contained in the contract or other agreement to purchase;

����� (d) Shall be separate from, and in addition to, any warranties provided by any other person;

����� (e) Shall be in lieu of any implied warranties by the declarant against defects in the plumbing, electrical, mechanical, structural or other components of any newly constructed unit or common elements; and

����� (f) Shall name the association of unit owners as an express beneficiary with regard to general common elements.

����� (2) A written claim reasonably specifying a breach of the warranty on the unit and the related limited common elements must be delivered to the declarant before the expiration of such warranty. A written claim reasonably specifying a breach of the warranty on the general common elements must be delivered to the declarant within two years of expiration of such warranty, but the claim must be for a defect existing prior to the expiration of such warranty under this section. An action to enforce such warranty shall not be commenced later than four years after expiration of such warranty.

����� (3) For the purposes of this section, �newly constructed units and common elements� means:

����� (a) Units and related limited common elements:

����� (A) That have been substantially completed for less than three years; and

����� (B) That have been occupied for less than 12 months.

����� (b) General common elements:

����� (A) That have been substantially completed for less than three years; and

����� (B) That were constructed contemporaneously with units that have been occupied for less than 12 months.

����� (4) The warranty required under subsection (1) of this section is not required for consumer products as defined in 15 United States Code 2301 (1). [Formerly 94.017; 1999 c.677 �45; 2001 c.756 �35]

DECLARANT CONTROL; TURNOVER

����� 100.200 Declarant control of association. (1) Subject to subsection (2) of this section, the declaration or bylaws may specifically provide for a period of declarant control of the association of unit owners, during which period a declarant or person designated by the declarant may appoint and remove officers and members of the board of directors and exercise powers and responsibilities otherwise assigned by the declaration, bylaws or the provisions of this chapter to the association, the officers or the board of directors. No formal or written proxy or power of attorney need be required of the unit owners to vest the declarant with such authority. Declarant control may be achieved by allocating in the declaration greater voting rights to a unit owned by the declarant.

����� (2) The declaration or bylaws may not provide for a period of administrative control of the association of unit owners by the declarant for a period exceeding:

����� (a) In a single stage condominium the earlier of:

����� (A) Three years from the date the first unit is conveyed; or

����� (B) The date of conveyance to persons other than the declarant of 75 percent of the units.

����� (b) In a staged or flexible condominium the earlier of:

����� (A) Seven years from the date the first unit is conveyed; or

����� (B) The date of conveyance to persons other than the declarant of 75 percent of the units which may be created or annexed under ORS 100.125 or 100.150, whichever is applicable.

����� (3) A declarant may voluntarily relinquish any rights reserved in the declaration or bylaws under subsection (1) of this section.

����� (4) Upon the expiration of any period of declarant control reserved in the declaration or bylaws under subsection (1) of this section, such right shall automatically pass to the unit owners, including the declarant if the declarant then owns one or more units in the condominium.

����� (5) A declaration or bylaws may not be amended to increase the scope of any rights reserved in the declaration or bylaws under subsection (1) of this section without the consent of all unit owners.

����� (6) The limitations specified in subsection (2) of this section shall not limit any right reserved by the declarant under ORS 100.105 (2) or (7), 100.125 or