Cohousing-L Mailing List: Re: Limits on rentals with or without absentee landlords

[Kathryn McCamant (kmccamant]

Yes, you can not get the best mortgage rates if there are more than 50% rentals 
in an HOA, per Fannie Mae. I have heard of communities that had a harder time 
getting the most competitive mortgage rates when they hit 25% rentals. New 
California law requires all condo developments to allow up to 25% rentals….so 
there you go! The magic number is no more than 25% non-Owner occupied homes in 
your community. This has no impact on renting rooms within an owner occupied 
homes.

Katie
--
Kathryn McCamant, President
CoHousing Solutions
Nevada City, CA 95959
T.530.478.1970  C.916.798.4755
www.cohousing-solutions.com

From: cohousing-l <cohousing-l-bounces+kmccamant=cohousing-solutions.com [at] 
cohousing.org> on behalf of Sophie Rubin <yophiest [at] gmail.com>
Reply-To: Cohousing-L <cohousing-l [at] cohousing.org>
Date: Monday, July 3, 2023 at 9:50 AM
To: Cohousing-L <cohousing-l [at] cohousing.org>
Cc: Bonnie Fergusson <fergyb2 [at] yahoo.com>
Subject: Re: [C-L]_ Limits on rentals with or without absentee landlords

Yeah after doing a bit of research it looks like it can be hard for buyers
to get a mortgage if more than 50% of the complex is rentals, or if more
than 10% of units are owned by the same person/entity.

This leads me to think a subdivision structure would be better - more
security for buyers and less weird red tape for the rental LLC. Of course
getting subdivisions approved is it’s own can of worms.

Anyone’s cohousing structures as a subdivision instead of a condominium
association?