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SandraH17 (Texas)
Posts: 3
Posted:
Our Texas subdivision has 5 rental homes, but no Amendment establishing a Rental Cap.
The Homeowners want a Cap of 5%.
We have a 3-member Board.
The new President of the HOA agrees to a Rental Cap Amendment, but wants 8%.
The President believes that if he and one other Board member agree, they can force this on the homeowners.
He refuses a survey to see determine what the Homeowners want, before putting the Amendment to a vote.
The vote would fail, and no CAP would be achieved.
Can he do this?
TimB4 (Tennessee)
Posts: 21,059
Posted:
To have a rental cap, you must amend the deed restrictions (aka the Covenants, the CC&Rs, the Declaration).

The Board may be able to force a vote on one limit or the other.
It's the members that decide.

Typically, you need a 2/3 majority to amend deed restrictions.

My suggestion, don't have a cap. Specify that no home/unit may be rented the first two (or 3) years of ownership.
This will keep the investors out of the complex, allow those that need to rent to rent and minimize the amount of work a future board would need to do to monitor and enforce.

ElleN (Idaho)
Posts: 1,335
Posted:
-- For the purposes of amending the Declaration, the President can lawfully act only with the approval of a board majority.

-- If two directors want to put this to a vote, then this is lawful, as long as all other steps for amending the declaration (as given in the declaration itself) are followed perfectly.

-- Where board approval is required and not obtained by the President, the president may be acting "ultra vires" and risking a lawsuit. See BO 20.002.

-- If a board majority forces a meeting where a vote on the cap will take place, ask that the notice for the meeting include a motion to amend the proposed amendment to 5%.

-- The procedure for amending the Declaration, as given in the Declaration itself, must be followed perfectly. Is it?

-- Be advised that the five homes currently being rented must be grandfathered in and so not vulnerable to having their right to rent taken away, until possible the ownership of the home changes. The proposed amendment should speak to this.

-- An attorney should be used to prepare the proposed amendment and speak to the grandfathering aspect. The land mines for an amendment imposing a rental cap are legion.

-- Be aware that a director and officer (President, VP, treasurer etc.) are two different roles. Hence: Please confirm that the President is also a duly elected director. Overview: Owners elect directors, unless a board vacancy occurs mid-term. Directors (not owners) elect officers.
DeanJ
Posts: 1,786
Posted:
Quote:
Posted By SandraH17 on 05/21/2025 10:37 PM
Our Texas subdivision has 5 rental homes, but no Amendment establishing a Rental Cap.
The Homeowners want a Cap of 5%.
We have a 3-member Board.
The new President of the HOA agrees to a Rental Cap Amendment, but wants 8%.
The President believes that if he and one other Board member agree, they can force this on the homeowners.
He refuses a survey to see determine what the Homeowners want, before putting the Amendment to a vote.
The vote would fail, and no CAP would be achieved.
Can he do this?

This may sound a bit strange, but an amendment usually must pass by a super majority (66% or more) of the owners. This means the minority has the ability to veto the amendment by voting no or not voting at all. . Getting an amendment to pass is the art of obtaining a super majority vote. You have to please the super majority and amendments are not easy tasks for most boards

I would speculate 5 current rental owners are no votes. You probably have other owners in your HOA who will vote no on any rental cap and some who will vote no because they believe 5% is too restrictive.

If you and some other owners take a hard line no vote because you will not accept an 8% limit, the result is the amendment will fail and you will not have a limit on rentals.

My advice is you accept your board’s proposal and quit rocking the boat because you are getting exactly what you want.
MichaelS56 (Minnesota)
Posts: 859
Posted:
TimB4, your suggestion is what our association did two years ago. To implement that we had an association vote and received a 98% vote to change our declaration. so far, the change has kept investors out of the HOA.
SheliaH (Indiana)
Posts: 6,964
Posted:
As others have said, your documents require a homeowner vote on changing the documents (bylaws or CCRs), so what need to be done is to rein in this president.

Why is the rest of the board sitting there and letting this happen? It's 2 against 1 so they could remove the president from that spot if your documents contain language saying homeowner select the board and the board appoints officers from among themselves. Don't guess on this - pull out your documents and read them.

If you and your neighbors can't pressure the other members to appoint someone else for the spot, you may need to consider voting him (or them) out at the next board election or hold a special homeowners meeting to vote on a recall. Keep reading your documents to see how that's done, get some like mindedpeopletogether and start rallying the rest of the community. This will take some work and there may be drama- if you're not up to that, find some people who are. Find some people who will step up and run to replace them- in fact considerrunning for a spot yourself.

After that, you can deal with the rental issue - there's more to it than setting a percentage. Read some old conversations on this website about the pros and cons and then you and your neighbors can discuss what might work best for your community.

Spoiler alert - managing rental caps take a considerable amount of work and if no one's willing to do it, it may be easier to start with an amendment approved by homeowners (as required) that state they wait two years after purchase before the house can be rented out. You may need to draft a policy for hardship exemptions and grandfathering current owner-landlords, but you can get tge association attorney to help with that. Good luck!

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
ElleN (Idaho)
Posts: 1,335
Posted:
Quote:
Posted By SheliaH on 05/23/2025 7:37 AM
As others have said, your documents require a homeowner vote on changing the documents (bylaws or CCRs), so what need to be done is to rein in this president.

Why is the rest of the board sitting there and letting this happen? It's 2 against 1
It appears you did not read the first post with even an iota of care.

Uneducated much?
SheliaH (Indiana)
Posts: 6,964
Posted:
Bitter Much? You do know if you or anyone else disagrees with a post,, you can simply ignore it and move on to the next, don't you?

The man is acting as if you can just take a vote on this stuff, but you've posted long enough on this website to know you can't take a slap dash approach to these things or badger everyone else to go along because he's the president. There are five rental homes and we don't know the total number in the community. Even if the majority votes in favor, you don't think those owners won't feel some kind of way about this and talk to THEIR attorney on how to stop it?

And I happen to LIKE the idea of rental caps and believe in homeowners surveys.

Don't know why you've gotten so salty towards me while I was taking a break from posting- who hurt you? This is National Mental Health Month- therapy might do you some good. In the meantime, I will continue to be me and say what I say and mean what I say. That is all.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
ElleN (Idaho)
Posts: 1,335
Posted:
Quote:
Posted By SheliaH on 05/23/2025 2:44 PM
The man is acting as if you can just take a vote on this stuff, but you've posted long enough on this website to know you can't take a slap dash approach to these things or badger everyone else to go along because he's the president.
I see you still did not read the first post in the thread.

If you had, you would see that the HOA President has said it takes two of three board members to agree to put an item up for an owners' vote.

KerryL1 (California)
Posts: 14,550
Posted:
I think the OP's post is a hard to follow. But it seems two Board members want to offer an amendment for owners' vote that the rental cap be 8% instead of 5%.

Elle's wording, is similarly murky, but I think she's saying that the Board with a majority in favor can place the 8% cap before owners for their vote.

My first question to Sandra is: Are you ON the Board?

Next, did the Board vote -- as documented in meeting minutes-- to forward the 8% cap to owners for owners' vote on this proposed amendment for legal voting procedures ? OR, did the Prz & other director just "talk" about this? Or?

To continue with Elle's post. Sandra, IF you're on the Board and have any voice. If owners DO vote and there's a meeting of the members to tally the votes, she suggests you ask that the "...notice for the meeting include a motion to amend the proposed amendment to 5%." There are a few problems here.

First, notices only announce a meeting, they are not agendas., which list the topics.

2.Elle advises that the agenda include a "motion" to amend the "proposed" amendment. a. IN HOA world, we rarely place "motions" on the agenda.*. Typically, the agenda contains items of business, or topics vs. fully, precisely -worded motions. b. Why would this prez allow this 5% amendment to the amendment be on the agenda for the meeting? c. IF impossible, What if a quorum of owners to vote on this amendment to the amendment isn't there? d. Most likely, assuming the 8%. fails, the board will have to start all over again.,mail out a ballots, etc. ( depending on TX statutes, etc.)

Then, Tim's & Michael's suggestions look really good!

* If motions are common on anyone's HOA meeting agendas please let us know.
KerryL1 (California)
Posts: 14,550
Posted:
Shelia replied to elle: "Don't know why you've gotten so salty towards me while I was taking a break from posting- who hurt you? This is National Mental Health Month- therapy might do you some good. In the meantime, I will continue to be me and say what I say and mean what I say." That is all." Kudos, Shelia!

I hope that other regular posters will also praise you for your worthwhile contributions despite elle's snark-talk."Uneducated much?" directed at you??? Is this really OK to other readers???? Or are some afford of elle???

I, too have noticed that elle has been rude to you since your return. Hate to say it, but join the club, she's been disgustingly rude to me off and on for quite some time. I imagine you don't follow all of the posts, but most recently, she accused me of lying about my 14 years of service* on my HOA Board. Being very slow at everything nowadays, I didn't contact the moderator, but will reply to that one. WE cannot let bullies speak without resisting or everyone here thinks this one is OK.

elle seems to, um, resent those of us who've done the hard rigorous labor of board service for a long time. She probably remembers you served 10 years and also as treasurer. I feel you're a valuable contributor to this forum. Not sure why she's picked tow women at which to spew her bile.
n
She's woderful at researching HOA topics about the law, statues, etc. BUT,pieced together from a few hints of hers her & there on this forum: She served one or two years on one for two boards. I think one. The HOA was large, but seemingly non-complex. She didn't seek reelection, or lost. The time periods seems to have been late 2000s, perhap a year into the teens. She hasn't even owned on an HOA for several years now.

* B/c of friendly personal correspondence will elle some years back, she knows very well that at that time I'd served 12 years, took a year off and was considering 2 more years (which I did run for and won). I know her real first name and she, mine. They are very similar and start with the same letter.

.
ElleN (Idaho)
Posts: 1,335
Posted:
Quote:
Posted By KerryL1 on 05/24/2025 4:29 PM
I think she's saying that the Board with a majority in favor can place the 8% cap before owners for their vote.
Yup.

There is no requirement for a survey before putting a proposed amendment to a vote.

One option owners wanting a 5% cap can attempt to exercise is to put a motion to amend the proposed amendment on the agenda. Proper notice for such a motion is essential, for legal reasons. Will the owners be successful in amending the ? If not, no worries. If the vote fails, then take the steps needed to vote on a new, proposed amendment.

At the moment my biggest concern is that neither the board nor the OP realize that the amendment must speak to grandfathering, and using legalese, or else chaos and litigation may erupt.
DeanJ
Posts: 1,786
Posted:
Quote:
Posted By ElleN on 05/24/2025 5:18 PM
Posted By KerryL1 on 05/24/2025 4:29 PM
I think she's saying that the Board with a majority in favor can place the 8% cap before owners for their vote.
Yup.

There is no requirement for a survey before putting a proposed amendment to a vote.

One option owners wanting a 5% cap can attempt to exercise is to put a motion to amend the proposed amendment on the agenda. Proper notice for such a motion is essential, for legal reasons. Will the owners be successful in amending the ? If not, no worries. If the vote fails, then take the steps needed to vote on a new, proposed amendment.

At the moment my biggest concern is that neither the board nor the OP realize that the amendment must speak to grandfathering, and using legalese, or else chaos and litigation may erupt.

A motion to who? A board is not required to recognize a motion to include an issue on a board meeting agenda nor do the owners have a right to vote at a board meeting.

To accomplish what you suggest, a special owners meeting must be called by the owners for that purpose.
ElleN (Idaho)
Posts: 1,335
Posted:
Quote:
Posted By DeanJ on 05/24/2025 7:18 PM
A motion to who?
DeanJ, from my first post:
Quote:
Posted By ElleN on 05/22/2025 7:45 AM

-- If a board majority forces a meeting where a vote on the cap will take place, ask that the notice for the meeting include a motion to amend the proposed amendment to 5%.
When a motion involves high stakes, then to maximize the chances of the motion not being challenged in court, the motion should be noticed to owners in advance of any owners' meeting.

Alternatively owners can try to make the motion spontaneously at the owners' meeting where the vote is taking place, itself.

The legality depends on the details of amending the declaration and conducting owners' meetings.

At the owners' meeting, owners can also try to motion to change the proposed amendment to a two year time limit before a new owner is allowed to rent.

Either way grandfathering needs to be addressed.

The OP has several paths to take to try to get the amendment he/she wants. For example: Follow the steps in the bylaws and TPC 209/BO 22 to call a special meeting of owners to discuss what people want. Ask to be recognized during a board meeting. Send a letter to the board stating that several owners believe a 5% cap would pass and that an attorney should be consulted about grandfathering. And of course as others noted above: Rally owners to not vote for the 8% cap and then work for another vote to amend.

Meanwhile, and to respond once again to the OP's question: The HOA President is not overstepping his authority if he has board majority support to put this issue to an owners' vote.

DeanJ
Posts: 1,786
Posted:
Quote:
Posted By ElleN on 05/25/2025 6:29 AM
Posted By DeanJ on 05/24/2025 7:18 PM
A motion to who?
DeanJ, from my first post:
Quote:
Posted By ElleN on 05/22/2025 7:45 AM

-- If a board majority forces a meeting where a vote on the cap will take place, ask that the notice for the meeting include a motion to amend the proposed amendment to 5%.
When a motion involves high stakes, then to maximize the chances of the motion not being challenged in court, the motion should be noticed to owners in advance of any owners' meeting.

Alternatively owners can try to make the motion spontaneously at the owners' meeting where the vote is taking place, itself.

The legality depends on the details of amending the declaration and conducting owners' meetings.

At the owners' meeting, owners can also try to motion to change the proposed amendment to a two year time limit before a new owner is allowed to rent.

Either way grandfathering needs to be addressed.

The OP has several paths to take to try to get the amendment he/she wants. For example: Follow the steps in the bylaws and TPC 209/BO 22 to call a special meeting of owners to discuss what people want. Ask to be recognized during a board meeting. Send a letter to the board stating that several owners believe a 5% cap would pass and that an attorney should be consulted about grandfathering. And of course as others noted above: Rally owners to not vote for the 8% cap and then work for another vote to amend.

Meanwhile, and to respond once again to the OP's question: The HOA President is not overstepping his authority if he has board majority support to put this issue to an owners' vote.


If the board’s proposal fails at a meeting of the members, the reason the meeting was called, then an owner may make a motion. Not before.
JackS20 (North Carolina)
Posts: 271
Posted:
Quote:
Posted By KerryL1 on 05/24/2025 4:29 PM
* If motions are common on anyone's HOA meeting agendas please let us know.

we put what the board will vote on in the agenda. We started doing this because our secretary was horrible at writinng minutes. She would just write a summary and not include the most important things, like what was voted on.

by having a list of what will be voted on, she now just copies this and puts the results in the minutes.
She probably shouldn't be secretary honestly, but no one else is volunteering.

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