Re: Rental policies? | <– Date –> <– Thread –> |
From: Kay Wilson Fisk (caseyjacketsgmail.com) | |
Date: Thu, 10 Nov 2011 12:01:06 -0800 (PST) |
> I don't like it. Who gets to decide WHICH of the households gets to rent? First, a little background on Meadow Wood: When our LLC was preparing to build our complex, not enough units had pre-sold to be able to get a construction loan, so three members purchased a total of five of the units, and the project was able to get started. In addition, one family purchased a second unit for their parents, and a non-profit purchased a "Guest Unit" to rent at below market rates for 1 year at a time to a families that needed "a leg up." At the same time, we were advised that we needed an upper limit on rentals because banks/FNMA were reluctant to make loans in condo projects, so we set the limit at 7 rentals to include the existing rentals but no more. The bottom line: our complex would not exist today if we had not pre-authorized these 7 rentals. In the meantime, the economy has tanked, and three families have needed to move, but couldn't sell their units. The Guest Unit was determined to be classified as a "Second Home" by HUD, and the other two units have been granted 1 year, renewable, hardship "rental ceiling exceptions." Now, we are updating our Declaration to reduce the allowable rentals from 7 to 5, to add a grandfather clause for existing rentals, and to clarify a few issues. (One rental owner plans to sell his rental as soon as the economy permits.) These amendments are as follows: Amendments to MWCA Declaration (Final Draft) ----------------------------------------------------------- 10.3.1 Rental Ceiling. Except as otherwise provided in this section, the maximum number of non-Owner Occupied Units in the Condominium at any one time shall not exceed five (5) (referred to in the Declaration as the "Rental Ceiling"). The Guest Unit, if any, shall be considered one (1) rental unit and included in the total limit of five (5). 10.3.2 Rental Waiting List. If a resident Owner wishes to rent his or her Unit but is prohibited from doing so because of the Rental Ceiling, the Association may establish a Rental Waiting List and provide rules therefore in its rules and regulations. 10.3.3 Grandfather Clause: Pre-existing Rental Exception. Units that are currently rented or leased as of [DATE], 2011, are exempt from the reduction in the rental ceiling and may continue to be leased/rented until the Owner, or owning entity, decides to sell the unit(s). When the unit is sold or transferred to a new Owner, the exemption will expire. Units with temporary exceptions allowing them to be rented for a limited time are not covered by this grandfather clause. 10.3.4 Exception. Where, on written application from a resident Owner, the Board determines that a hardship exists whereby, due to circumstances beyond the control of the Owner, that Owner would suffer serious harm by virtue of the limitations on renting contained in this section, and/or where the Board further determines that variance from the policy or policies contained therein is fairly in keeping with the purpose to limit investor ownership of Units and would not detrimentally affect the other Owners or the approval of the Condominium for secondary mortgage market financing, lender approval or VA or FHA approval, the Board may, in its discretion, grant an Owner a waiver of the Rental Ceiling for a temporary period to be determined by the Board. A Unit rented under a hardship exception granted by the Board under this Paragraph shall not be counted as a non-Owner occupied Unit for the purpose of determining whether a rental would cause the number of non-Owner occupied Units to exceed the Rental Ceiling. 10.3.5 Resident Owner Restriction. In order to protect the cohousing organizational structure of the community, which is dependent upon voluntary participation in community life, only units owned by resident Owner Members may become rental units. No rental units may be owned by absentee landlords except as permitted under 10.3.3 Grandfather Clause: Pre-existing Rental Exception or 10.3.4 Exception. Kay Meadow Wood Cohousing www.mwcondo.com
- Re: Rental policies?, (continued)
- Re: Rental policies? R Philip Dowds, November 9 2011
- Re: Rental policies? R Philip Dowds, November 9 2011
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Re: Rental policies? Ann Zabaldo, November 9 2011
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Re: Rental policies? Diana Carroll, November 9 2011
- Re: Rental policies? Kay Wilson Fisk, November 10 2011
- Re: Rental policies? Muriel Kranowski, November 10 2011
- Re: Rental policies? Kay Wilson Fisk, November 10 2011
- Re: Rental policies? Diana Carroll, November 10 2011
- Re: Rental policies? Kay Wilson Fisk, November 11 2011
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Re: Rental policies? Diana Carroll, November 9 2011
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