ORS 94.662 Notice to lot owners of intent of association to commence judicial or administrative proceeding; contents of notice; right of lot owner to opt out

At least 10 days prior to instituting any litigation or administrative proceeding to recover damages under ORS 94.630 (1)(e)(E), the homeowners association shall provide written notice to each affected owner of the association’s intent to seek damages on behalf of the owner. The notice shall, at a minimum:

Be mailed to the mailing address of each lot or to the mailing address designated in writing to the association by the owner;

Inform each owner of the general nature of the litigation or proceeding;

Describe the specific nature of the damages to be sought on the owner’s behalf;

Set forth the terms under which the association is willing to seek damages on the owner’s behalf, including any mechanism proposed for the determination and distribution of any damages recovered;

Inform each owner of the owner’s right not to have the damages sought on the owner’s behalf and specify the procedure for exercising the right; and

Inform the owner that exercising the owner’s right not to have damages sought on the owner’s behalf:

Relieves the association of its duty to reimburse or indemnify the owner for the damages;

Does not relieve the owner from the owner’s obligation to pay dues or assessments relating to the litigation or proceeding;

Does not impair any easement owned or possessed by the association; and

Does not interfere with the association’s right to make repairs to common areas.

Within 10 days of mailing the notice described in this section, any owner may request in writing that the association not seek damages on the owner’s behalf. If an owner makes such a request, the association shall not make or continue any claim or action for damages with regard to the objecting owner’s lot and shall be relieved of any duty to reimburse or indemnify the owner for damages under the litigation or proceeding.