Common area

Here's my first question.

Single family home development with community pool, tennis courts, clubhouse among other things.

Under an article of our CCR's Property rights in Common area it states:
"every Member shall have a right and easement of enjoyment in and to the common area,"....
it goes on to say who is a member, tenants, guests and invitees rights and such.

I am making the assumption the amenities, entrance and the rest are what is being spoken about under common area. Please correct me if I am wrong. If I am, that makes my question moot.

Under another section of this article it states:
"The use of the Common area by an Owner or Owners, and all other parties authorized to use same, shall be at all times subject to such reasonable rules and regulations as may be prescribed and established by the Association governing such use, or which may hereafter be prescribed and established by the Association."

OK, that all makes perfect sense to me. We must have rules of use so as to not encourage abuse.

Now on to the question. One of our rules that has been established is the clubhouse is only open for rental by members. There is no access except by rental. Does this rule seem unreasonable? Why have a clubhouse at all if it generally cannot be utilized?

Thanks for any input.

Mike

Yes, open for rental to members only, not the general public. Agreed, this is a wise choice. The question arises that the clubhouse is otherwise closed. From what I have seen, clubhouses in communities around us are generally open with an electronic pass key on a daily basis for owners use.

Mike

Mike,

The rental income may be being used to defray the costs of upkeep/cleaning.

Have you asked the Board or checked past minutes to see why the clubhouse isn't open unless it's rented?
It could be as simple as nobody asked or as complicated as insurance issues.

Mike

I guess part of this would be what does the clubhouse have to offer and how to control its usage.

If there is say an exercise room then this amenity should be open to member usage as is say the pool with such as established hours, methods of access, etc.

If it is like a banquet hall and one could have a function there then the type function would have to be approved, scheduled, and cleaned up after. For this purpose, I would want deposits, fees, etc.. Nominal fees, but none the less fees.

There are also liability, insurance, taxing, ADA, etc. issues when used and/or rented by non-owners. For these reasons many will not rent nor allow usage for any type non-owner events.

What are you looking to use it for and/or suggesting?

Thanks

Our HOA's clubhouse is used like that. We have to pay a $25 rental fee and a $100 damage deposit. It is ONLY allowed to be rented to HOA members up to date with their dues. Exclusive use of the attached pool is NOT allowed. Invited guest of the members are allowed as long as they keep them under control.

The clubhouse is used for holding our HOA meetings. That is the ONLY time it is available for any member to enter if they are not exclusively renting it out. Which seems to be the issue your having. The understanding that once one wants EXCLUSIVE USE of the clubhouse it is then rented only to that owner and their event. If it were a HOA function or event like meetings, then we don't consider that a "rentable" situation.

The building not being in use all the time or open to members is typical. It is having that option of renting, that makes the clubhouse availability of use. Rent prices should be set at the rate of use of the utilities, supplies, and clean up. Your HOA is a non-profit. Which the clubhouse rental is above your HOA dues. That would make it a "profit" as HOA's are to be funded by dues/special assessments. Having the rental fee in place displaces the actual costs of having it open. The water, utility, and supplies bill rises whenever you have the building open. So that fee displaces that cost back down to less profit. Profit in a HOA can equal paying taxes.

Mike,

I wonder if the term "clubhouse" is confusing the issue. Our clubhouse is 21,000 square feet with an indoor pool, pool tables, card room, ballroom, exercise room, offices, etc., etc. It sounds like what you have might better be described as a "community room" or a "party/meeting room". If you have no facilities within this structure that would be usable on a daily basis then the rental arrangement you described makes sense.

Reasonable question, Mike. Along with David, can you describe it a little bit further? Is it, for example, a large detached room with kitchen facilities and bathroom(s)?

Melissa suggests some plausible reasons why it's only available as a rental to residents. This, as she & Tim note, defrays the costs of heating, lighting, water/sewer and custodial services. if it were open from, say, 8am-10pm every day to any resident for no fee, it would still have to be policed every day by staffers, wastebaskets emptied, floors or carpets swept or vacuumed, bathrooms/kitchen cleaned, etc. I'm guessing your HOA members would need to pay more for those daily services.

There's a community room in each of our 2 towers. They are attached to our lobbies and the rooms' occupants use the lobby restrooms. There's a full kitchen, sofas & nice chairs & big screen TV in one, and a small kitchen area, 5 tables for 4-5, in the other, which is also used for HOA meetings. Any resident may use these from 8-10 every day without a fee. The custodians clean them daily when they clean the lobbies.

The board and HOA committees need not pay a fee, but are wise to reserve them. There's a movie night once a month and residents don't need to pay to see it as it's a Social Committee event. About once a year the Soc. Comm. sponsors a health or safety event, e.g., CPR training with no fee to attend. The SC usually has 2-3 cocktail parties a year in them.

If residents want exclusive use of one of them, they must reserve them by filling out a form and including a refundable security deposit and non-refundable fee. The fee, indeed, covers custodial services for the room and lobby restroom.

But here's what may work for your HOA, Mike--a sliding fee schedule. Our non-refundable fee is based on the expected number of guests. 10 or fewer is $10; up to 20 is $25; more than that is $40. The rooms' occupancy limit is 49.

Perhaps you can place this on your board's agenda for its consideration. Or you and others can think of other possibilities to submit to your board.