DavidA7 (California)
Posts: 179
Posts: 179
Posted:
I received information from a newsletter from Davis-Stirling.com and have copied from the newsletter. Out of respect to them if curious contact Adams Kessler, PLC. I do not work for them just receive their newsletter.
Impact of Renters. Historically, homeowner associations have experienced problems with renters who tend to be transient, have little or no stake in their communities and violate rules in greater numbers than owners. By no means are all renters bad but high rental populations often drive up HOA expenses and depress property values--a phenomenon recognized by banks, insurance companies, Fannie Mae, FHA and the courts. In an effort to keep rentals at reasonable levels, associations throughout California have enacted various forms of rental limitations.
Realtors. The California Association of Realtors ("CAR") was unhappy with this trend since it impeded their ability to sell property to investors, which includes many of their own Realtor members. As a result, CAR sponsored SB 150 which exempts owners in a common interest development from rent restrictions unless the restriction was in effect prior to the date the owner bought into the development.
In addition, the bill requires owners to provide buyers with a statement describing any provision in the governing documents that prohibits the rental or leasing of units in the development.
On July 7, Governor Brown signed the bill into law to take effect January 1, 2012.
-------------------------------------------------------------------------
Couple things
1) My HOA which is 8 units will not consider putting rental restrictions in place. Out of 8 units we have 4 rentals and I'm the only one who advocates it. I'm curious when we get to 5 what will happen for someone trying to sell or refinance.
2) I consider this intrusion into ability, if so desired, by the HOA to manage its own affairs regarding rentals as ludicrous. Another big corporate entity in this case CAR probably giving money to the CA senate and Governor and getting their way. For once I feel the insurance companies and banks were of the correct view.
Impact of Renters. Historically, homeowner associations have experienced problems with renters who tend to be transient, have little or no stake in their communities and violate rules in greater numbers than owners. By no means are all renters bad but high rental populations often drive up HOA expenses and depress property values--a phenomenon recognized by banks, insurance companies, Fannie Mae, FHA and the courts. In an effort to keep rentals at reasonable levels, associations throughout California have enacted various forms of rental limitations.
Realtors. The California Association of Realtors ("CAR") was unhappy with this trend since it impeded their ability to sell property to investors, which includes many of their own Realtor members. As a result, CAR sponsored SB 150 which exempts owners in a common interest development from rent restrictions unless the restriction was in effect prior to the date the owner bought into the development.
In addition, the bill requires owners to provide buyers with a statement describing any provision in the governing documents that prohibits the rental or leasing of units in the development.
On July 7, Governor Brown signed the bill into law to take effect January 1, 2012.
-------------------------------------------------------------------------
Couple things
1) My HOA which is 8 units will not consider putting rental restrictions in place. Out of 8 units we have 4 rentals and I'm the only one who advocates it. I'm curious when we get to 5 what will happen for someone trying to sell or refinance.
2) I consider this intrusion into ability, if so desired, by the HOA to manage its own affairs regarding rentals as ludicrous. Another big corporate entity in this case CAR probably giving money to the CA senate and Governor and getting their way. For once I feel the insurance companies and banks were of the correct view.