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CaseyD (Oklahoma)
Posts: 5
Posted:
I am having an issue with my HOA. I apologize if this has been previously discussed, I've been searching and found similar topics but with significant differences.

The CCR’s do not have any rental restrictions at all but do say “An owner may lease the dwelling on his lot.” They then follow to also say that any tenant must abide by the community documents. CC&Rs don’t mention that rental restrictions can be added by the board later.

2 years ago, to be safe, I emailed the president of the HOA and asked if there would be any issues with transitioning my rental to a furnished corporate/short term. He responded that there are no “restrictions on actually renting the home”. So I furnished it and now offer it short term.
At the beginning of this year, the board implemented a new rule on leasing saying that the minimum rental period is now 30 days. They also let me know that I would be fined $100 a day until I had a 30 day lease submitted to them.

Of course litigation is an option but could be costly. I asked to be grandfathered in and they responded negatively via a long letter from their lawyer. I’ve read that a board can’t add a rule more restrictive than the CCRs but can’t find a solid source to share. Any thoughts or suggestions would be greatly appreciated. I tried to follow the rules and even emailed the CEO of the HOA. Not sure what I could have done differently.

Thanks for your help.
LetA (Nevada)
Posts: 2,679
Posted:
I honestly don't think the HOA can change the "rules" issues such as yours are governed by the CC&R's, HOWEVER, if your local government changed the law
regarding short term rentals, then your HOA is bound by law to follow the new law.
AugustinD
Posts: 5,144
Posted:
First, does the city or county zoning where you are permit such a rental arrangement? Second, the citation would likely be to case law for HOAs. If Oklahoma does not have an appeals court case that is on point, then this would be a 'case of first impression,' and the attorneys involved will cite the case law from other states. From my reading, the law is on your side. HOAs cannot generally create a rule that is more restrictive than the covenant on which the rule is based. Doing so goes against the contractual agreement that the covenants denote. Also, lacking anything specific in the CC&Rs on the point, the courts err on the side of an owner's general right to "free enjoyment of the property."
RichardP13 (California)
Posts: 3,868
Posted:
People would need to see the full context of the CCRs in regards to this subject, but I believe it may be within the power of the Board to set minimum time limits for a lease. I checked 5 Oklahoma HOA's and each had vague CCRs, but had expanded rules for leasing. If the rules is a minimum of 30 days, I would find that fair and reasonable and consistent across the country.
CaseyD (Oklahoma)
Posts: 5
Posted:
Thanks for the responses. I called the City before I did anything and they said there were no issues.

I have looked at Oklahoma Case law and don’t find anything very similar. I did find case law that appears to be on my side from another state – Illinois:

https://law.justia.com/cases/illinois/court-of-appeals-first-appellate-district/2016/1-14-1427.html
BenA2 (Texas)
Posts: 1,273
Posted:
No, no, no, the board cannot create a rule more restrictive than the CC&Rs. If there are no time limits on the term of rentals then the board cannot create them unless there is a law or precedent in your state that gives them that authority, which would be very unusual.

Many HOAs are preventing short term rentals based on the residential use clause that many CC&Rs have. I would bet that most states already have case law addressing this. I know there have been at least two appellate cases in Texas, both with opposite decisions and I understand both are headed to the state supreme court.

You may want to speak to an HOA attorney before going forward.
RichardP13 (California)
Posts: 3,868
Posted:
This language was found in an HOA in Edmund, OK

4. Leasing of Lots. "Leasing," for purposes of this Paragraph, is defined as regular exclusive occupancy of
a Lot by any person, other than the Owner for which the Owner receives any consideration or benefit, including,
but not limited to, a fee, service, gratuity, emolument. All leases shall be in writing. The Board may require a
minimum lease term Notice of any lease, together with such additional information as may be required by the Board
shall be given to the Board by the Lot Owner within 10 days of execution of the lease.
The Owner must make
available to the lessee copies of the Declaration, Bylaws, and the Restrictions and Rules.

This type of language will allow a Board to enact rules that set minimum time limits for a lease.

Many CCRs have language that says the Board may enact Parking Rules, which can be anything they want as long as they are deemed fair and reasonable.
BenA2 (Texas)
Posts: 1,273
Posted:
That is correct. What I should have wrote is, the board cannot create a rule more restrictive than the CC&Rs unless the CC&Rs give them that authority.

Of course, rules for common areas are a totally different animal.
CaseyD (Oklahoma)
Posts: 5
Posted:
Thanks for all the detailed feedback. Very helpful and appreciated.

The CC&R's do clearly give the board authority to make rules but they don't specify the ability to add restrictions for home leases...

There are some restrictions that the CCRs grant explicit authority to add restrictions for such as their restriction on pets (type, size, number) and noise so seems the writers understood that the CCRs would need to grant the ability if desired...feeling pretty good about my odds.
TimM11
Posts: 354
Posted:
Years ago, my HOA tried to limit leasing in the rules, even though the CC&Rs flat-out said that homeowners could do so with no limitations. It lasted for several years until it was challenged, and they were advised that they'd lose in a lawsuit. I still don't know what they were thinking -- I wasn't on the BOD at the time -- but yeah, based on experience it doesn't surprise me that an HOA would try to limit something in the rules that they're not allowed to restrict.

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