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DaniellaW (California)
Posts: 2
Posted:
Hi all. I am the secretary for a Tustin CA homeowners association with a question that is most likely not all that unusual.
Can homeowners association a) impose higher association fees to absentee owners who rent out their units? The problem is that renters here not only flout the rules, they do not keep up the property or the common area due to a "here today, gone tomorrow" attitude. If problems arrise, it often takes more time and effort to contact a unit's owner.
b)can homeowners associations limit the number of rental units in a given complex? I understand that property values do decline when rental units reach a given percentage vis a vis owner-occupied units. It also becomes harder for prospective buyers to secure loans if the percentage of renters exceeds certain guidelines.
Also, can hoas restrict the number of occupants in a unit regardless of city/county/state ordinances?
RogerB (Colorado)
Posts: 5,067
Posted:
Daniella,
a) Being an absentee owner does not qualify for a differential assessment rate. If the renter violates restrictions then notify the owner and warn them that if the violation continues they will be subject to a fine. It is not a renter or an owners responsibility to maintain the common area. That is the association's responsibility.

b) Yes on % renters.
Questionable on number of occupants as long as a "reasonable" number. But if this create a nuisance that violation can be enforced.
DonN (Michigan)
Posts: 357
Posted:
DaniellaW

The question about creating different dues for different types of use depends upon the statutory and case law in your state. There is a fundamental fairness issue involved whenever different requirements are created for different units. Some courts have ruled that such amendments require unanimous approval of the unit owners.

The CC&Rs are a contract each owner makes with all other owners. While amendments may be authorized with less than unanimous approval, changes which create different requirements for different units likely requires unanimous approval. Without this protection for example, owners could gang up on owners of large homes and increase assessments only on those large homes merely by approval of such an amendment by the specific percentage of owners. Such an action doesn't meet a fairness test. On the other hand, amendments that apply to all units usually don't create such unfairness problems.

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