Changing Covenants

Started by SherryF1 • 9 replies • 1842 views

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SherryF1 (Wyoming)
Posts: 1

Posted:

In our HOA, several of the units were purchased as investment property. Some are rented on an annual basis, some on a 3 day minimum basis, some to family and friends. Several units are owner occupied, however the owners purchased the property as a future rental property. Now some of the property owners want to change the covenants so the units have to be owner occupied. We have several older residents who are against this as if they would have to go into long term care they would be forced to sell their home if they could not rent it out. On the other hand several of us feel that it is the owners responsiblity to screen their renters. As long as the outside of the units are neat and tidy, neighbors are not bothered and follow the HOA rules we shouldn't be worried about what "goes on behind closed doors". One comment is that there is too much coming and going. Well we live in a very tourist oriented area and even the owner occupied units have lots of people coming and going. Now my question is, can the board force those who have purchased the property as investment property be forced to change it or are there any laws against it? Would the Fair Housing Act come into play here?

RogerB (Colorado)
Posts: 5,067

Posted:

Sherry, I doubt seriously that you could ever get sufficient votes to amend the Covenants to 'owner occupied only'. Why not try a less drastic approach such as placing restictions on renters and guests?

LindaG (Wyoming)
Posts: 1

Posted:

Sherry, This sounds a lot like "our place"..how smart of you to ask for a general consensus on this problem.

NikkiT (Texas)
Posts: 30

Posted:

Good luck.

In the HOA I live in the BOD changed the CC&R's they felt the easy way. The 5 BOD made up a 'new' set and recorded it in the County Land Records. The original CC&R's filed in 1972 by the deveoper specifically states that changes can only be made by 2/3 vote of Property Owners. Does not state Association Members or BOD - - but PROPERTY OWNERS. Oh well, being legal does not rate high on the priority list of the BOD out here. As they say, "Who's going to tell me no? Who's going to sue? If anyone tries, they will only be suing themselves."

And now they wonder why this HOA has gone from a membership of over 400 to a current membership of 114! But of course, it is the fault of the 'people who no longer are interested in what they do."

Good Luck to you. I feel it is still easier to do things the legal way. The law is there for a reason.

Nikki T.

RogerB (Colorado)
Posts: 5,067

Posted:

Nikki, I would challenge the amendments to the CC&Rs improperly filed by the BOD. I would get a copy of the amendment; and if the letter filing the amendment states that 2/3 of the owners approved the amendment I would demand proof. If they admit to improperly filing I would demand they advise the County Clerk to void the filing. If they don't want to do so I would make them aware there will be a suit in which they will be personally liable for your costs as well as their own. Insurance and indemnification do not apply when there is wrongdoing. If that doesn't move them to action I would get an attorney who will take the case on a contingency basis.

HaroldS (Arizona)
Posts: 906

Posted:

And now they wonder why this HOA has gone from a membership of over 400 to a current membership of 114! >>> Nikki - I am curious about this statement. Is yours a voluntary HOA? Otherwise, how would your membership decline? Harold

JamesC (Maryland)
Posts: 282

Posted:

Sherryf1

I would also like to know the answer to HaroldS question.

JamesC (Maryland)
Posts: 282

Posted:

Sherryf1

We would certainly like to see our private community go for owner only. We have called a special meeting with a home owner for this evening. You say as long as renters keep the exterior of their home neat and tidy it should be no concern as to what goes on in the inside. The renters of this home have destroyed the interior of the house to the extend our county police department says there is between $50,000 to $75,000 damage to the inside of the home. Ours is a community of 171 townhomes of modest value and the neighbors next door are constantly terified of the two boys who live there. The homeowner says if he were to evict them he would have to incur these large repairs before he could rent the home again.
One of the outs at our disposal is they have thrown furniture into a large wooded area belonging to our association and we will advise the landlord we are going to have the area cleaned at a cost of $2500.00 and he will receive the bill. As a board member who is also on the archeturial committee I am suggesting we fine him for every possible infraction these renters cause to the exterior. We probably have fifteen (15) renters in our community and they really don't care because they have the option of leaving anytime they want. On the other hand our investments are here. We have been told once rental property become %30 of a community that mortgage lenders will no longer be obligated to write mortgages in our community. (or won't want to)

BrianB (California)
Posts: 2,820

Posted:

james, i believe you are on the correct track with the idea of simply enforcing the rules across the board on all homes, period. If it becomes too expensive for the owner to allow his renters to violate the rules all the time, he will take care of the problem.

Do not single out "renters", just fairly enforce all the rules as written, across the units, and either the renters will shape up, or the owners will pay a ton of money to the HOA for their actions, and that money can be used to repaint, landscape, etc. the common areas.

DesireeM (Texas)
Posts: 1

Posted:

I too would like to know the answer to Harold's question.
ddm

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