Section 1: Definitions; Total Taking, Partial Taking, Special Partial Taking

The term "taking" as used in this Article shall mean condemnation by exercise of power of eminent domain or by sale under threat of the exercise of the power of eminent domain. A "total taking" shall occur if there is a permanent taking by eminent domain of an interest in all or part of the common areas or of all or part of one (1) or more units, such that the ownership, operation and use of the project in accordance with the provisions of this Declaration is substantially and adversely affected, and within one hundred twenty (120) days after the effective date of the taking the owners of any units (1) not taken, or (ii) only partially taken and capable of being restored to at least ninety-five percent (95%) of their floor area and to substantially their condition prior to the taking (collectively the “remaining units”) do not by affirmative vote of a majority of their entire voting interest (without adjustment among such units for relative voting rights because of such partial taking) approve the continuation of the project and the repair, restoration and replacement to the extent feasible of the common areas and the remaining units. A “partial taking” shall occur if there is any other permanent taking of the Property. A partial taking shall include, without limitation, a “special partial taking” which is described herein as a taking of all or part of one (1) or more units, as units, subject to all of the provisions of this Declaration, without involving any taking of the common areas except to the extent of the proportionate interest therein of the units taken, so that the taking authority becomes a successor in title to the owner or owners of the townhome or townhomes so taken with the same effect as if such units were purchased by the taking authority. Following any taking which in the opinion of the Board of Directors would constitute a total taking in the absence of the affirmative vote of the owners of the remaining units as required by the foregoing provisions, the Board of Directors shall call a special meeting of owners of the remaining units to be held promptly, and in any event within sixty (60) days after the effective date of such taking, to determine if such owners of the remaining units, will or will not, decide to continue the project as provided herein.

Section 2. Awards; Repair; Restoration and Replacement

Subsection A

In the event of a total taking, the Board of Directors shall: (i) except as provided in Section 3, represent all of the owners in an action to recover any and all awards, subject to the right of all first mortgagees of record, upon request, to join in the proceedings, (ii) proceed with the sale of that portion of the project which was not included in the condemnation proceedings and destruction of the net proceeds of such sale after deduction any incidental fees and expenses, in the same proportion and in the same manner as provided in Article 12, Section 2 and (iii) distribute the condemnation award in accordance with the court judgement of the agreement between the condemning authority and the Association, if any, if there is no such judgement of agreement, in accordance with Article 12, Section 2 of this Declaration.

Subsection B

In the event of a partial taking, other than a special partial taking, the provisions of Section 2A(i) of this Article shall be applicable. The net proceeds of the partial taking awards shall be held by the Board of Directors, after deducting related fees and expenses and the portions of the awards allotted in the taking proceedings or, failing such allotment, allotted by the Board of Directors to (i) units, totally taken or partially taken and not capable of being restored to at least ninety-five percent (95%) of their floor area and substantially their condition prior to the taking, and (ii) units taken in the same manner as in a special partial taking except that the taking is made subject to only some or to none of the restrictions (collectively the “taken units”).

The proceeds of the partial taking award allotted to the taken units shall be paid to the owners of the taken units; provided, however, that such proceeds shall first be applied to the balance then due on any mortgages of record in order of priority before the distribution of any such proceeds to any owner whose townhome is subject to any such mortgage. First mortgagees of record with respect to the remaining units affected by such partial taking shall be entitled to severance damages payable out of the award proceeds held by the Board of Directors to the extent that such mortgagees can prove that their security has been impaired by such taking. The balance of the net proceeds shall then be applied to the repair, restoration and replacement of the common Property and the remaining units (but not owners’ personal property nor those portions of the units which the owners are obligated to restore) to as nearly their condition prior to the taking as may be feasible, in the same manner and under the same provisions applicable to the proceeds of insurance, except that the total amount of the award payable to any member and his mortgagee or mortgagees for a destroyed unit or units shall not exceed the value of said member’s townhome interest.

If the funds held for restoration by the Board of Directors are less than the cost of restoration and repair, a reconstruction assessment of the remaining owners (determined with reference to the relative square foot floor areas of the remaining units, as restored) may be levied by the Board of Directors to provide the necessary additional funds for such reconstruction. In no event shall the Board of Directors be required to undertake any repair or restoration work or make any payments with respect to any unit in excess of that portion of the awards reasonably attributable to the loss to that unit. Following any partial taking, the Association and the project shall continue, subject to and with the benefit of all the provisions of this Declaration, so far as applicable to the remaining units, and the voting interests of the owners shall be the same.

Subsection C

In the event of a special partial taking or a temporary taking of any townhome, the owner of the townhome taken, together with his mortgagees, shall have exclusive rights to prosecute the proceedings for the respective taking awards and to retain the proceeds thereof. In the event of a temporary taking of common areas, the Board of Directors shall have exclusive rights to prosecute the proceedings for the respective taking awards and shall apply the proceeds thereof to reduce common expenses.

Section 3: Awards for Owners’ Personal Property and Relocation Allowances

Where all or part of the project is taken by eminent domain, each owner shall have the exclusive right to claim all of the award made for such owners’ personal property, and any relocation, moving expenses, or other allowance of a similar nature designed to facilitate relocation. Notwithstanding the foregoing provisions, however, or the provisions of Section 1 and Section 2, the Board of Directors, except in cases of a special partial taking, shall represent each owner in an action to recover all awards with respect to such portion, if any, of an owner’s personal property which is at the time of any taking, as a matter of law, part of the real estate comprising any unit, and shall allocate to such owner so much of any awards as is allotted in the takings proceedings or, failing such allotment, allotted by the Board of Directors to such owner's personal property. The amount to allocated shall be paid to the owner entitled thereto, whether or not the unit in which such owner’s personal property was located is to be restored by the Board of Directors; provided, however, that such proceeds shall first be applied to the balance then due on any mortgages of record encumbering such owner’s townhome, in order of priority. Notwithstanding restoration of the unit, the Board of Directors shall have no responsibility for the restoration of such owner’s personal property.

Section 4: Notice to Owners and Listed Mortgagees

The Board of Directors immediately upon having knowledge of any taking by eminent domain of the Property, or any portion thereof, shall promptly notify all owners, all institutional holders of first mortgages on townhomes in the project and those mortgagees who have filed a written request for such notice with the Board.