Rental Units - how many allowed by law

Krystal,
There is an active posting about this specific right now. Look at Discussion topic and also run a search about this problem from the search block on Discusion Topis page.

What the FHA says is they will not approve FHA loans when the renter to nonrenter ratio is above some sliding mark. Usually 30 % rentals. That don't mean that other lenders can't come in an destroy the complextion of the neighborhood. My condo is above 70% rental with many FHA backed loans. Could you get an FHA loan here now, I doubt it. This of course restricts the sellers market which is supposedly illegal but if the association (like mine) didn't have the motivation to restrict rentals when they could have and were aware of this pitfall, it will take a miracle to turn it around. Certainly the 70% that rent are not going to work for a change. And with this market now, things are likely to get worse. But look at the faces of your fellow homeowners when you bring up the subject, their interest is somewhere else. Our Board aided and abetted this conversion, in part, because the board members also rent, and they to this day see no evil in what they helped create. They have left their footprint on this Condo that may in the end become a fatal blow to having a neighborhood, ever. Right now it is more condo-hotel than a "Private Residential Neighborhood" as the big sign says at our front entrance.

PS.HOA's do have a court decided right to restrict rental. it has to be an ammendment to your covenants approved by some super majority of the owners.
It's a tough thing to do, good luck.