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MaureenM1 (PA)
Posts: 344
Posted:
This is not a new topic however I started a new tread on the subject.

I recently read on one of the treads in response to an HOA Talk member asking about limiting rentals(see below). I am the President of a 40 home townhome development. The builder has sold 12 of his homes that he was renting to ONE investor who intends to rent these units. The builder last year sold 3 of his homes to ONE investor who continues to rent (both have taken over the leases of the current tenants). His relative rents one that he owns so the total is 16 rentals out of 40 homes. There are 24 homeowners that live in their homes and do not rent.

We are in the final stages of transition. My question... is there any recourse for our association or can we implement what is stated below. The new investor will have 12 votes and the other investor have 3. The homeowners are still the majority but does not make up 67 percent. Our CCR's/bylaws currently state that 67 percent of the Association vote is needed to change/amend bylaws which we will never have as it currently stands. Can voting rights be limited to non occupant owners? Should we be contacting our board attorney? or does the Board and homeowners have no recourse. Any advice would be appreciated. I live in PA

Maureen

BELOW IS A POST FROM ANOTHER HOA TALK MEMBER...>

If I recall correctly, you are working with your developer to amend the CC&R's before turnover to the owners.

First, it sounds like you need to better define "rental." Maybe it should mean the occupancy of a home by anyone other than the person named on the deed.

You might want to require association approval for all rentals, require that the renters pay assessments directly to the association, and have the renters agree to be co-responsible with the owner for all violations while they are in possession of the property.

You could try limiting the number or percentages of rental units, but I would recommend some sort of annual lottery for the right to rent out a unit.

You might also consider suspending voting rights of non-occupant owners.

You also ought to give yourselves the authority to evict a renter for non-compliance with the rental rules.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Maureen

There are several issues at work.

1. A declarant can make changes to the CC&R's, Bylaws while they are in control. They can do so without any owner approval. I doubt your declarant will make any changes about rentals.

2. Any changes must be legal and there have been many questions concerning rental controls so this area must be done legally.

3. In your case even when the control of the HOA passes to the owners you will in effect have a couple of super (multi unit) owners (15 out of 40 or 37.5%) and I doubt you could get any changes made that would limit what they want to/can do as per rentals of their units.

4. At best I think you might could get some rental controls put in place if you grandfathered all present owners. I doubt that will work but you could try it.

4. In my case, the declarant will make any changes we want to make but even then, we are back to #2 above.
JohnB26 (South Carolina)
Posts: 1,569
Posted:
a) Can voting rights be limited to non occupant owners?
b) Should we be contacting our board attorney?
c) Does the Board and homeowners have no recourse?


a - no
b - your choice, are y'all willing to pay his bill?
c - see answer to b

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