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MarieA1 (California)
Posts: 7
Posted:
I am on the board of a CA HOA. Our CC&R's state we can not operate a business in our unit. Can a Ho or tenant operate a day care center or babysit for several children in their unit? I thought I remember reading that child care operators are exempt from this rule. I have researched this and I can't find anything regarding day care. Any help is appreciated.
WilliamT (Arizona)
Posts: 489
Posted:
I think most home business restrictions are for the purpose of preventing excess traffic in the area.

If all business are restricted then people could not work at home on a remote office computer or other such businesses where no traffic increase is caused.

Another case is online stores operated from homes. They take delivery of product from UPS, and these type couriers are in the communities every day for deliveries to someone. They will take their product to the post office or to a UPS drop off once per day, so they do not create any extra traffic. Obviously they could not have people pick up at their home.

It doesn't sound like someone baby sitting 3 kids is going to create any extra traffic that is excessive.

What is the full wording of your CC&R? And is a business also covered in your Rules and REgulations? If so, what is the full wording of that?

With the exact wording, others here may be able to offer more advice.

MarieA1 (California)
Posts: 7
Posted:
Our CC&R's exact wording is:

Business or Commercial Activity.
No business or commercial activity shall be maintained or conducted on the Property, except that grantor may maintain sales and leasing offices as provided in Article VII. Notwithstanding the foregoing, professional and administrative occupations may be carried on within the units, so long as there exists no external evidence of them, and provided further that all of the applicable requirements of the city and County in which the property is located are satisfied. No owner shall use his condominium in such a manner as to interfere unreasonably with the business of Grantor in sellings condominiums in the project, as set forth in Article VII of this Declaration.

Thanks for your help.
WilliamT (Arizona)
Posts: 489
Posted:
Posted By MarieA1 on 09/30/2006 2:05 PM

Notwithstanding the foregoing, professional and administrative occupations may be carried on within the units, so long as there exists no external evidence of them, and provided further that all of the applicable requirements of the city and County in which the property is located are satisfied.

quote]

MarieA1

It appears to me that this sentence in your declaration is allowing the type of businesses that are prevelent in homes today, provided that they have the proper licenses.

One could argue that the children, and the parents who drip them off, are external evidence of a professional occupation, and therefore could be a violation.

One could also argue that children are visible throughout the community, and so are parents with children getting in and out of their cars. So the fact of having children arrive at her home and stay all day does not provide external evidence of a professional occupation. (This would be a tough decision for a judge)

If the peson baby sitting does not have the proper licenses to operate a day care, then she is clearly in violation of the city or county laws, and the declaration.

The board could consider writing a certified letter to the lady, and including the complete language of the declaration, as you have here, and ask her to provide the board with a copy of the license to provide day care.

If she does not produce the license, or does not have a license, then the board can write a violation letter to her and give her 10 days (or whatever time your Rules state) to cure the violation. Then begin the fine process. She would be in violation of operating a day care center without the city or county license as required in the CC&R's.

If you are forced to begin fining, then you should also contact the licensing authorities and they will take over.

Beyond those actions, I would recommend obtaining advice from an HOA attorney.

Good luck

HaroldS (Arizona)
Posts: 906
Posted:
I don't know about other states but Arizona allows 4 children to be cared for without getting a license. "With some exceptions, providers who care for more than 4 children for compensation must be licensed or certified by the Arizona Department of Health Services (DHS)." (The exceptions do not relate to this discussion.)
So what criteria are you going to judge a home that is watching less than the number of children which would require a license? Would you allow a home with a license that watched say 10 children, but would not allow a home that watched four children because they did not have a license? Yet the home watching ten children would create more daily traffic than the one watching four children.
Frankly it wouldn't bother me to have a child care person for a neighbor.
Harold
WilliamT (Arizona)
Posts: 489
Posted:
Harold,

Their declaration seems to be straight forward, and seems to be in line with today's work at home society. Operate your business at home, but do not add extra traffic to the streets, or create extra commution. Their declaration has two criteria:

1. If one is running a business it must have the proper license. If no license is required for the number of children that are cared for, then that meets the first requirement of the declaration.

2. There must be no external evidence of the occupation. That could be a bit subjective, and every neighbor may have a different opinion. The board would first need to decide their collective position after receiving written complaints from neighbors. If the board does not receive written complaints, then it's a non-issue.

Perhaps 10 children could present external evidence because there would be 10 automobiles arriving at the residence, possibly at the same time, twice per day.

A neighbor living 10 blocks away may not notice this at all, but the next door neighbors may be bothered by this.

What would happen if 10 homes in the area ran day care centers? Now there are 100 cars twice per day.

Three or four children being picked up may not be that noticeable.

Ten children outside for recreation could be external evidence, whereas 4 may not.

I believe the test is how many children are "reasonable" in order to meet that second criteria. That would be up to a judge, and a judge could rule either way.

I'm trying to be objective in looking at the declaration, so I cannot state whether a day care next to me would bother me, no matter the number of kids.

If the day care were next door to my house then I would be able to form my opinion if a nuisance is being created and if there is external evidence of an occupation.

Consider a neighbor has a construction company that is run out of the home. He parks his unmarked truck with a trailer attached, in front of his house each evening. Each morning four vehicles containing his workers arrive at the house to pick up supplies and work orders. Each evening the same four vehicles arrive and drop off completed work orders and tools.

Now consider that in a community of 140 homes there are 6 licensed contractors on different blocks, doing the same thing. Two of them are on the same block.

Could this be external evidence of an occupation?
Is this adding extra wear and tear to the private streets?
Is this situation different from the day care traffic?

If there were 6 day care centers in the same community with the 6 contractors, is it possible that in the mornings and the afternoons the community would resemble a commercial area, and would neighbors complain?

However, if there is only one such business, either construction or day care, and they are determined to meet the criteria of the declaration, then wouldn't every home in the community be entitled to operate the same type of business?

This is just food for thought, because these can be tough calls.

How would I go about solving the question the poster asked?

If I were on the board, and a written complaint came in, I would send a friendly letter to the homeowner asking if they had the proper license, and then I would have the license and the laws verified.

Next I would somehow try to determine if there is external evidence of an occupation in the home.

I would make sure that my decision was based on an objective interpretation of the declaration, and my observation.

If I determined there was external evidence of an occupation, I would sent a notice of violation. If the homeowner elects to contest the violation, then I would consult with an HOA attorney on how to proceed. (That is because of the subjective nature of the criteria, and the potential legal costs if the homeowner were to sue)

I would recommend that the board follow the advice of that attorney to the letter. If the board voted to not follow the attorneys advice, then I would make sure that the minutes use my name to show how I voted on the issue. That is in the event the board is sued individually over the action, and it is found that the board was negligent in their fiduciary duties, I would have some protection because the minutes would show that I disagreed with the action.

KathyS (California)
Posts: 145
Posted:
From a California attorney Q+A forum:

Q: Must an association allow a homeowner to operate a day care center out of their home if the CC&Rs prohibit this use of the property?

A: Yes, day care centers must be allowed, at least those with 14 or fewer children. The California Health and Safety Code provides that every association restriction "which restricts or prohibits ... the acquisition, use, or occupancy" of property "for a family day care home for children is void." The statute applies to day care facilities of up to 14 children found in any single-family residence, whether condominium, townhome or detached home. Although current law forbids associations from prohibiting the existence of day care centers, associations may sue for nuisance based upon the problems caused by the conduct of the facility. Under a nuisance cause of action a court can restrict the operations of a day care center if it determines that the center disturbs a homeowner's quiet enjoyment of his or her property, among other things.
BrianB (California)
Posts: 2,820
Posted:
Marie, one thing to check is the wording: "professional and administrative occupations"...

In my opinion, running a child care center is NOT a typical "professional and administrative occupation"... No slur intended for the wonderful people who do run day care centers, but the TYPICAL definition for a professional occupation tends to run to engineers, bankers, lawyers, accountants, managers, etc.. those people who have advanced training, degrees, etc..

So, one could interpret your code to still not allow child care, as it is not a professional occupation.

Unless, of course, you are in California.
EdR (Texas)
Posts: 170
Posted:
FYI, there are problems inherent to day care centers that go beyond whether there are more than a certain number of children, etc. Each State has a minimum number allowed before you need a license from the health department. The problems we have encountered in TX when it comes to day cares in HOAs are this: usually the parents dropping the kids off are in a hurry; they speed and usually do not live in the assn., they are dropping kids off at the time that school buses are picking up and dropping the residents' kids off, and other residents are trying to get to or from work; in our assn. children have nearly been run over by these in-a-hurry-to-drop-off-at-the-sitter sites. The other problem was in the Houston Chronicle this past year and it involved a registered sex offender living next door to a woman who had a day care. The sex offender was registered, so he was legit, albeit probably still dangerous, but the woman with the day care took issue with his being next door, even though she didn't have a license for day care. She was concerned that she was going to have to watch the kids like a hawk, and probably that's the case. I don't know how it turned out, but this is a case of neither being in the right, so what's an HOA to do? I used to be on a board and if anyone had a business that could be SEEN, TASTED, HEARD or SMELLED, a letter was sent to them from the MC or board. A day care could be seen, heard and possibly smelled, but if the traffic isn't causing a problem, it might be okay to ignore it (I've seen a few of these speeders getting ticketed). If I had a daycare with a sex offender next door, I'd close it, because I can't imagine the clients who know about it, continuing to bring their kids there. Have I confused us all now? Just some things to think about.
EdR

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