Renter Restrictions for Community
I’m wondering if an Arizona HOA can put a limit on how many renters are aloud in a HOA managed gated community? Our percentage of homeowners that live on the premises is maybe 10% and the rest are renters. The renters are not maintaining the property like a homeowner would. We’ve had more crime, more houses that are poorly maintained, ect. I’m hoping we can somehow put this to a stop. Can we change the By Laws or CC&R’s to reflect this??
About Post Author
1 Response
Leave a Reply
You must be logged in to post a comment.
Christy,
Both HOA and Condo boards are allowed by common law to create a rule that can limit the number of non-owner occupied properties to comply with federal lending restrictions. While most people do not know this once a threshold currently established by the FDA of non-owner occupied homes in a community is exceeded the the federal banking system will no-long allow loans on any properties to be underwritten. In other word if you want to sell your home or unit anyone trying to buy that unit or home will have to pay cash because they will not be able to get a loan to buy your property. This will significantly negatively impact your property value and the ability for you to sell your home. Since the association is in place to protect your home value than if they do not take action to prevent this from happening then they are breaching their duty to the association. So they are in fact obligated prevent the number of non-owner occupied homes to currently less than 50% of the homes. Under Federal law “owner occupied” is defined by the owner living in the home for at least 3 months a year.
If you are currently at only 10% owner occupied you can no longer to anything to undo this. Not only has everything in your community deteriorated as you motioned but all property in the community can no longer be financed with a fanny-may or freddy-mack loan. Unfortunately you have few options other than to attempt to sue the board for allowing this to happen as a breach of duty to the community. It is uncertain if even this can change anything.
Dennis