MichelleN1 (Maryland)
Posts: 1
Posts: 1
Posted:
Do real estate agents that buy up property in our community have the right to vote at meetings?
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Real Estate agents that buy up property to rent in our HOA
Started by MichelleN1 • 4 replies • 1348 views
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RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Michelle, any owner has the right to vote unless they are limited by not being in good standing.
JM2 (Oregon)
Posts: 439
Posts: 439
Posted:
Hi Michelle:
Roger is correct, but there is a bigger issue to consider. As the percentage of rentals in your community grows, you may eventually hit a trigger-point where Fannie Mae and Freddie Mac mortgages are no longer available to purchasers, since a large portion of the community is investor-owned. If your community is heading that way, consider talking to your board (or if you're lucky and still under developer control, your developer) about putting in some sort of rental restriction. It's best done as an amendment to either your Declaration (if not a condo) or your bylaws. The important thing is to get it done soon enough that you don't have less homeowners living in their units than the percentage required to pass an amendment (typically 75% but check your documents); it is hard to convince a rental owner to vote for an amendment that may restrict him from renting his unit. These types of amendments are best drawn up by a lawyer, to craft it in a way as to protect the ability of homeowners to sell, and to avoid any legal issues dealing with the Fair Housing laws.
J. Patrick Moore, CMCA
Compliance Coordinator
Forest Heights Homeowner Association
Portland, Oregon
Roger is correct, but there is a bigger issue to consider. As the percentage of rentals in your community grows, you may eventually hit a trigger-point where Fannie Mae and Freddie Mac mortgages are no longer available to purchasers, since a large portion of the community is investor-owned. If your community is heading that way, consider talking to your board (or if you're lucky and still under developer control, your developer) about putting in some sort of rental restriction. It's best done as an amendment to either your Declaration (if not a condo) or your bylaws. The important thing is to get it done soon enough that you don't have less homeowners living in their units than the percentage required to pass an amendment (typically 75% but check your documents); it is hard to convince a rental owner to vote for an amendment that may restrict him from renting his unit. These types of amendments are best drawn up by a lawyer, to craft it in a way as to protect the ability of homeowners to sell, and to avoid any legal issues dealing with the Fair Housing laws.
J. Patrick Moore, CMCA
Compliance Coordinator
Forest Heights Homeowner Association
Portland, Oregon
LanceT (Alabama)
Posts: 121
Posts: 121
Posted:
Please note that it may NOT be the right of the HOA to limit rentals but the MORTGAGE/LOAN companies. Typically, mortgage/banks can put "restrictions" on using property as rental. Some loans there are requirements the property must be owner occupied for atleast 1 year before turning it into rental.
It is also "illegal" to purchase multiple (more than 2)condo's or housing in one years time. This is to prevent scrupolous Condo/House flippers from flipping multiple properties and using shoddy materials. This came about when Condo's in florida were often remodelled and sold quickly. The remodelling work done was bad and caused damage to other units. Thus sticking the new owner with lot's of bills. A law was created so that this was prevented. Doesn't mean it doesn't happen. It's just if it is happening it can be reported to H.U.D or financial insitutions to investigate.
It is also "illegal" to purchase multiple (more than 2)condo's or housing in one years time. This is to prevent scrupolous Condo/House flippers from flipping multiple properties and using shoddy materials. This came about when Condo's in florida were often remodelled and sold quickly. The remodelling work done was bad and caused damage to other units. Thus sticking the new owner with lot's of bills. A law was created so that this was prevented. Doesn't mean it doesn't happen. It's just if it is happening it can be reported to H.U.D or financial insitutions to investigate.
Recovering Ex-President of a HOA
BradP (Kansas)
Posts: 2,640
Posts: 2,640
Posted:
Michelle:
Yes they can vote if in good standing. There are many posts on limiting rentals you can check out.
Yes they can vote if in good standing. There are many posts on limiting rentals you can check out.
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