More Renters than live-in owners

Started by LetA • 20 replies • 1553 views

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LetA (Nevada)
Posts: 2,679

Posted:

After a series of major issues in our HOA, the BOD found that there are slightly over 50% rental homes in our HOA.
NOW the BOD wants to act, but their hands are tied. One board member finally suggested to amend the CC&R's to
put a rental restriction of one year from close of escrow. I have been screaming for this for the five years I have lived here.
The boards hands are tied, with even 50% of the homes being rentals how can we get the owners to agree to amend the CC&R's?
The NRS's are quite clear and I believe it is a 2/3rd's majority to amend.
I wish it was 2/3rds of the actual owners that live IN the community.

Any thoughts or suggestions???

PitA
Posts: 1,416

Posted:

I wish I had enough money to move to a NON HOA home.

If the 'docs' specify 2/3, then 2/3 it is.

Should your 'docs' be similar to mine (lawyers love 'boilerplate') it would require 2/3 affirmative vote in writing of the TOTAL membership to amend.

eg. 120 homes would require 80 'aye' votes

NOT NOT NOT 2/3 of a 'quorum', but 2/3 of the TOTAL membership

As over 1/2 is renting, why would y'all even expend ANY energy ?

LetA (Nevada)
Posts: 2,679

Posted:

Good Question. This should have been nipped in the budd over 5 years ago, but the developer was having a fire sale. Our community sat nearly 2/3rds unfinished during the recession, so in 2012 the developer would sell homes to anyone that had enough cash, mainly investors. now we the owners that live here are stuck
with rental garbage that makes communities uninhabitable. At this point the BOD's only option is to go nuclear and be medieval on the violators up to and including foreclosing on serious repeat violators and filing evictions "notice to quit"

MelissaP1 (Alabama)
Posts: 13,836

Posted:

You can only foreclose on unpaid dues. Plus the Renters owe the HOA NO MONEY at all. It's ALL on the owners. So it's best to find out instead of creating restrictions... What legally you can do to enforce them... Keep in mind rental restrictions are not always that legal to enforce....

Former HOA President

KerryL1 (California)
Posts: 14,550

Posted:

I don't know if I't's legal or not for the HOA to foreclose in NV or file eviction notices. If you can do those things, follow the law & your docs to the letter and get going.

But, LetA, I 'd say your Board needs to enforce curing all violation as a swiftly ,strongly and as frequently as your own docs and NV allows. If you keep hammering away at the violators, they will have their tenant cure the violations. Just keep after these owners.

Your board might even want to appoint of committee of hardasses who'll write up the violators to give to the Board. the board sends out the letters and y'all proceed properly. Eventually these owners in violation will evict their tenants or fix some of the violations themselves.

Can you toughen your violations and cost of fines via your rules & Regs? We can. So you can double fines on repetition of the same offense. If your CC&Rs say so, you can remove amenity privileges.

In about 2009-10, our tenant- occupied was at 42% and we (the Board) were getting nervous. We didn't have a super abundance of extra violations compared with prior to '09 or after '11, but, still, an increase. We used extra diligence in enforcement and that combined with an improvement in the real estate market now sees us at 28% owner occupied. (Note: some owners who had to move out during the recessions were able to move back in afterwards once they got their finances healthier again).

Do you have a property mgr., LetA? What sir is your HOA? Are you on the board?

RichardP13 (California)
Posts: 3,868

Posted:

Quote:

Posted By MelissaP1 on 05/13/2017 4:17 PM
You can only foreclose on unpaid dues. Plus the Renters owe the HOA NO MONEY at all. It's ALL on the owners. So it's best to find out instead of creating restrictions... What legally you can do to enforce them... Keep in mind rental restrictions are not always that legal to enforce....

WRONG!!!!!!

GenoS (Florida)
Posts: 4,276

Posted:

First amendment you should attempt is to change the amendatory provision itself. Try to make it a simple majority of those in attendance at a meeting where a quorum is present. Of course, THAT amendment will require a 2/3 vote according to the existing provisions.

PitA
Posts: 1,416

Posted:

And, THAT amendment (turning a contract into a Democracy) may be unenforceable.

LetA (Nevada)
Posts: 2,679

Posted:

YES INDEED, HOA's in Nevada can and does foreclose on unpaid assessments.
http://www.nolo.com/legal-encyclopedia/nevada-hoa-foreclosures.html

In fact, there has been some hot legal contention both in the legislature and in the Nevada Supreme Court.
There were some investors connected to HOA managers and board members that was buying up 250K & 500k homes for under 20K
Even Fox News legal analyst Bob Massi did a youtube video on it, and yes as long as all i's are dotted the bidder walks away with a clear title.
In Nevada HOA's have a superpriority over the banks NRS. 116

LetA (Nevada)
Posts: 2,679

Posted:

That is the consensus among the BOD, enforcing the CC&R's. After being here for 5 years, this was the first HOA meeting, i missed the last 2 where the BOD held hearings for violations.

To the current of former board members, does the HOA have to power to issue a notice to quit against renters? i.e. evict them?
How about an HOA inspector, not necessarily a security guard, because guards don't give a rats patute, but a company that will write up violations? that way
there is no favoritism.

KerryL1 (California)
Posts: 14,550

Posted:

quite some time ago on this forum, I rd about an HOA whose management company did only that: looked for and wrote up violation which they forward to the Board. I assume a rep of the MC attended hearnigs too, to confirm the violations.

SheliaH (Indiana)
Posts: 6,964

Posted:

Quote:

Posted By LetA on 05/15/2017 8:34 AM
That is the consensus among the BOD, enforcing the CC&R's. After being here for 5 years, this was the first HOA meeting, i missed the last 2 where the BOD held hearings for violations.

To the current of former board members, does the HOA have to power to issue a notice to quit against renters? i.e. evict them?
How about an HOA inspector, not necessarily a security guard, because guards don't give a rats patute, but a company that will write up violations? that way
there is no favoritism.

That may depend on local or state law in your area, as well as your documents, so check your documents first. Generally, the HOA has to go after the owner because the lease is between him/her and the tenant, not the association. The owner is ultimately responsible for the behavior of the people who live there and visitors to that unit, and since he/she is an association member, he/she has a responsibility to comply with the rules. If that owner is maintaining a nuisance, there may be language in your documents that can be used to hammer the owner because of his/her tenant's behaving badly. I've always said if people won't do things because it's the right and adult way, grab his/her money and that will persuade him to straighten up and fly right - starting with having better taste in selecting tenants.

As long as the board provides clear instruction, I think an HOA inspector to do community walk-throughs is a good idea. Some property management companies have this service as part of their contracts (they can identify common area repairs while they're at it) and others (like our community) offer the service as an additional service. Either way, it takes potential conflicts of interest between, say a board member and his/her next door neighbor out of the mix, problems can be photographed with a date/time stamped and copied to the homeowner so there's proof and you may be able to prevent selective enforcement because the entire neighborhood would be surveyed instead of those @#$@#%!! around the corner.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

KerryL1 (California)
Posts: 14,550

Posted:

Looks like (see my way above) Sheila & I are on the same page. And an MC's rep cruising the premises DOES take the burden off the Board or Owners in general. I think the MC also can write the letter, on behalf of the Board, of the outcome of a hearing, e.g., fine, x days to cure, or whatever.

TimB4 (Tennessee)
Posts: 21,059

Posted:

LetA,

I think if the Board explains that this amendment will not affect current rentals, you will likely get support.

Someone will have to make phone calls, send emails and, perhaps, multiple letters to all owners to achieve the requirement you desire. Proxies are your friend here (expecting that proxies are allowed).

RichardP13 (California)
Posts: 3,868

Posted:

Quote:

Posted By MelissaP1 on 05/13/2017 4:17 PM
Plus the Renters owe the HOA NO MONEY at all. It's ALL on the owners.

When many CCRs are re-written, or the legal term, Re-Stated, there is a clause placed in them called Assignment of Rents . If the owner is delinquent, the rent would then go to the HOA and what is leftover is returned to the owner. Most lenders will also have this clause in their Deed of Trust. Some states will allow a lien on fines and some states will allow to foreclose on assessments and/or fines.

JanetB2 (Colorado)
Posts: 4,219

Posted:

Quote:

Posted By RichardP13 on 05/15/2017 8:16 PM

Posted By MelissaP1 on 05/13/2017 4:17 PM
Plus the Renters owe the HOA NO MONEY at all. It's ALL on the owners.

And some states such as FL have it in their HOA laws that a rentor can be obligated to pay their rent to the HOA if the owner has failed to pay their appropriate association fees.