CCR's vs. Rules

Started by EdieL • 11 replies • 2023 views

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EdieL (Virginia)
Posts: 86

Posted:

Our recorded CCR's, Corp.Articles state the BOD can adopt
Rules and Regs for the Assoc. Common Areas for the operation
and for the Health,Safety,Welfare of the community. The BOD
has adopted a "rule" for any property owner that rents their
home, charging the owner a $1000.00 fee to be put into a BOD
escrow fund. The BOD sites their authority as the Health,Safety,
Welfare of the community. My take is this addition, change would
have to go to the membership for a vote to add this statement to
our CCR's (note CCR's are slient on rentals) Look forward to all
feedback!
Edie

JanP1 (Arizona)
Posts: 76

Posted:

I think I would have a little discussion with the board - and ask them if an attorney wrote the rule. "Health - Safety - Welfare" for the uneducated may be a lovely catch all - but what stated threat is emminent? Are renters treated different than other unit owners - (potential fair housing issue). And "the board's" escrow fund? How is that fund managed?

GeraldT4
Posts: 1,022

Posted:

EdieL - Please explain what type of association you live in, single-family, townhouse, condo with sublet option? It seems to me an association Board in and of themselves has no right to require an owner to pay $1,000 for renting their home. What is the $1,000 used for?

DanaA (Florida)
Posts: 117

Posted:

Rules and Regulations of the community, at least in Florida, can elaborate on the recorded CCRs, but they can not further restrict those recorded regulations. If your CCRs let you rent without the fee, than the only way the community can start charging this is through a membership vote passing this ammendment of the recorded CCRs.

EdieL (Virginia)
Posts: 86

Posted:

JanP1,
Yes the association attorney approved.
Fair Housing: I guess none on the BOD went down
this road.
GeraldT4,
Single Family Community. What's the $1000.00 is for?
No Clue
DanaA
My thought exactly!!

DonnaS (Tennessee)
Posts: 5,671

Posted:

Edie,
No, This situation would not fall under the Fair Housing Act. I can bet you good money that the $1000.00 required for a rental and to be held in an escrow account is for a guarantee against association property damage caused by the renters. You know--"Those Damn Renters". I have heard that a million times as I have 2 rental properties in Florida.

And we can argue a zillion times about the pros and cons of having renters and LET'S NOT GO THERE on this post. Is it legal for the Board to pass that rule? I do not know about Virginiabut in Florida a Board can pass Rules and Regulations without a membership vote but the membership must have a 14 day notification so that they can go to the meeting where R.&R's will be adopted and voice their opinions. We had such a meeting and the Board backed off of a stupid idea which they later agreed, was stupid. So there is power in numbers and let your Board know that this is outlandish.

CraigK (Florida)
Posts: 9

Posted:

I'm curious about how this applies to two rules at my association.

One is a rule against pick-up trucks. The convenant specifically allow pickups. The printed rules I was given do not contradict this in anyway. I was assured by the Property Manager that the rules I have were the latest (although they are from 2003). However, I am being told verbally that pickups are only allowed for owners, but not renters.

Second is a rule regarding pets. According to the covenants, owners are allowed to have pets with certain restrictions. In the section regarding lessees, there are a few specific restrictions on leasing regarding occupancy levels and time of lease. There is nothing regarding pets. There is also nothing saying the HOA can add further restrictions on renters. There is a clause saying the owner automatically delegates his right of use to the common to the lessee. It does not say anything about any restrictions on these rights. However, the rules and regulations say renters are not allowed pets.

Are these rules against renters in violation of the covenants?

PaulM (Pennsylvania)
Posts: 1,347

Posted:

EdieL: I'm not so sure I agree with the many posters' responses here. The BOD wants to charge a unit owner a $1000 Fee when/if they choose to rent out their unit; $1000 fee to be held in Escrow.

Due to the many renter concerns which this site is full of why not hold an escrow amount (from the owner) which will offset any 'damage' the renter has done against the common area. Whether the owner gets the $1000 from the renter--just like the apt. owner who charges an additional months rent up front to be held in escrow) or the owner pays it out of his own pocket, it would make the owner more aware of what and how 'his renter' is using or misusing the property. Something to think on...

DonnaS (Tennessee)
Posts: 5,671

Posted:

Craig,

I believe that the "rule" allowing pickup trucks for owners but do not allow them for renters is very open to a legal battle. I think that this is called SELECTIVE Enforcement and puts the renters in a seperate class from the owners. This rule goes against your Covenant statement--just as you noted. Good work there.

Now the covenant on "Pets" says owners are allowed to have pets with certain restrictions. What are the restrictions? Here again, they are singleing out the renters to have different rules.

They cannot make rules and regs that conflict with the Covenants.If it says that trucks are allowed, they are allowed. If it says pets are allowed, then they are allowed---all residents included.

CraigK (Florida)
Posts: 9

Posted:

Thanks, again, Donna.

The pet restrictions I referred to govern weight, type and number for the most part. It looks like you answered my question.

KrystaT (Florida)
Posts: 58

Posted:

Hi Craig, I just wanted to mention this;
In my community there's all kinds of "verbal" rules..lol...People who have NEVER even bothered to read our documents are the first ones trying to tell other people what the can & cannot do. If someone says something to you, tell them to show you in b/w. Most of the time, people will shut up b/c they know they have nothing...

EdieL (Virginia)
Posts: 86

Posted:

Thanks for all reply's.
The most important topic of all, When a new homeowner, via a
purchase comes into play, they receive a HOA Package, required by
law. Because this is an unrecorded rule, under the BOD Policy and
Proceedures, the new owner doesn't have a clue. The BOD does not
include the Policy and Proceedures in the HOA Package. I have continued
to maintain the position that BOD's Policy and Procedures manual is for how
the BOD operates, not meant to be used to change the governing recorded
Documents. Apparently I am speaking on deaf ears to the BOD and the
POA attorney.

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