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KarenS17 (Illinois)
Posts: 4
Posted:
The latest discussion that I can see on this is 2007, so I am posting this question. We are a small association of 9 owners in Illinois. Currently there is one rental...a long time rental and we have no problem with this. We want to amend our bylaws to prohibit any future rentals. Our problem is that one unit is going into foreclosure, so we would like to speed this up. Obviously, it the unit goes to auction it will be picked up by an investor and we don't want that. Getting a majority of voters will not be a problem...6 of the 9 are a definite vote for this.

What we don't know is what we do/how to accomplish this. We don't have funds to hire an attorney to write it. Is there any verbage available that we could use, then just hire the attorney to "formalize it"???

Thanks very much..
PamelaM5 (Florida)
Posts: 85
Posted:
Quote:
Posted By KarenS17 on 03/02/2011 11:01 AM
The latest discussion that I can see on this is 2007, so I am posting this question. We are a small association of 9 owners in Illinois. Currently there is one rental...a long time rental and we have no problem with this. We want to amend our bylaws to prohibit any future rentals. Our problem is that one unit is going into foreclosure, so we would like to speed this up. Obviously, it the unit goes to auction it will be picked up by an investor and we don't want that. Getting a majority of voters will not be a problem...6 of the 9 are a definite vote for this.

What we don't know is what we do/how to accomplish this. We don't have funds to hire an attorney to write it. Is there any verbage available that we could use, then just hire the attorney to "formalize it"???

Thanks very much..

May I ask why you want to prohibit rentals, especially since the one renter hasn't been a problem? Have you thought of rewriting the rental guidelines to prohibit renters with children, rentals of less than a year, etc, before you ban them altogether? You never know when a policy like that is going to come back and hurt you, especially in times like this.
KarenS17 (Illinois)
Posts: 4
Posted:
We are just concerned that if any future rentals come in that we don't have any "rules" in place that would limit # of people allowed to live there, parties, and that sort of thing. We are all (with the exception of 2 units, one being the one going into foreclosure) retirement age and above. The current renters are also in that age group of "retirees" and aren't wanting to have wild people living there. Which could happen if an investor purchases this property. Willing to hear any suggestions you might have in addition to the ones already given!! Thanks!
JanetB2 (Colorado)
Posts: 4,219
Posted:
Hi Karen:

Welcome to HOA Talk … It was a good idea to start a new thread with your question because you are from a different state and will have different statutes.

One of the ideas gaining popularity is to amend documents and include something stating after the unit is sold a new owner cannot rent for the first X number of year(s). This usually keeps those who purchase just to rent from purchasing these units. In turn it still allows those who own for a period of time the ability to rent, if needed.

You have stated that many current owners are retired … so let me give you a potential scenario:

In the future one of your unit owners must be moved to an elder care home and their family is now taking care of the unit. The family needs to sell the unit; however, in the current economy they would not be able to sell for a viable price. The family cannot afford to pay the mortgage payment and HOA fees while they wait to sell the unit, unless they rent the unit during that time period.

As Pamela stated eliminating the ability to rent with regards to the above scenario could cause harm to unit owners and their families. Therefore, consider all aspects of the choices your HOA makes and choose wisely.
KarenS17 (Illinois)
Posts: 4
Posted:
Good point! As far as doing this, do we just make up a wording of our choice and have the members vote on it, and then how does it become a part of our condo docs as a "bylaw"??
PamelaM5 (Florida)
Posts: 85
Posted:
Quote:
Posted By KarenS17 on 03/02/2011 12:53 PM
We are just concerned that if any future rentals come in that we don't have any "rules" in place that would limit # of people allowed to live there, parties, and that sort of thing. We are all (with the exception of 2 units, one being the one going into foreclosure) retirement age and above. The current renters are also in that age group of "retirees" and aren't wanting to have wild people living there. Which could happen if an investor purchases this property. Willing to hear any suggestions you might have in addition to the ones already given!! Thanks!

If you're truly concerned about young people renting there, why not put rules in place that no renters be younger than 55 instead of banning rentals altogether? Or that one half of a married couple has to be 55 or over? That, of course, won't solve the problem of younger people buying homes there, which could very well happen unless you somehow make yourselves a 55+ community in all ways rentals and purchases.
JanetB2 (Colorado)
Posts: 4,219
Posted:
To insure anything is more enforceable you would potentially want to amend your Declaration of CCR’s. You will need to follow your current CCR’s regarding amending and your state statutes.

Here is a link for the Illinois Condominium Property Act:
http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2200&ChapterID=62

You should read through the statute and become familiar. Also, it will let you know if your current documents are up to date and if your HOA is properly following the state statutes.

Here is the section regarding amendments:

(765 ILCS 605/17) (from Ch. 30, par. 317)
Sec. 17. Amendments to the declaration or bylaws. (a) The administration of every property shall be governed by bylaws, which may either be embodied in the declaration or in a separate instrument, a true copy of which shall be appended to and recorded with the declaration. No modification or amendment of the declaration or bylaws shall be valid unless the same is set forth in an amendment thereof and such amendment is duly recorded. An amendment of the declaration or bylaws shall be deemed effective upon recordation unless the amendment sets forth a different effective date.

(b) Unless otherwise provided by this Act, amendments to condominium instruments authorized to be recorded shall be executed and recorded by the president of the association or such other officer authorized by the board of managers.
(Source: P.A. 83 833.)

The amended document must be properly recorded … this is generally done through the local county records in most states.

Depending on your HOA members legal knowledge you might call a local attorney and ask what wording they recommend. An attorney can also insure the choice you make on the issue is absolutely legal. Other than this the HOA can easily file the amended document themselves, which might include a filing fee. You can call your local county records office to verify the filing fee cost. Alternately the attorney can also file for you as part of their service on this issue.

DagmarB (Georgia)
Posts: 21
Posted:
Hi Karen, we ammended our declaration last year limiting rentals, we also included that all lease applications have to be approved by the Board 2 weeks prior to the final lease being signed.
Documents required:
Credit Report
Criminal background check
References
Signature on a condensed version of our declaration and bylaws.
We have declined a few prospective tenants
We wrote the document, had an attorney review and file it for us. Total cost $ 150,00 and that included the filing fee.
Set a certain number of Rentals allowed during a Board Meeting, you may want to include it in your declaration.
I have also informed the realtors on the foreclosed unit, we had 13 out of 35 units that we are a rental restricted community, they can advise the auction co.

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