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

[Sharon Miller (slmiller.325]

I think “mother-in-law” basement apartments, or apartments added on to an 
existing home, do not count towards the 25%. These are more like renting out a 
room. And you are right - they can make a mortgage more affordable to the 
homeowner while also providing homes to people who can’t afford to buy. It’s a 
win-win I think. 
Sharon 

Sent from my iPhone

> On Jul 7, 2023, at 4:25 AM, Ross Andrew Simons <rasimons1 [at] gmail.com> 
> wrote:
> 
> Very interesting.
> 
> Do you think walk-out basement / in-law style apartments would be a way of
> getting around that?
> 
> Two of our tenets are “mixed income affordability” and “multigenerational
> diversity”, and walkout basement rental units within owner-occupied homes
> feels like a good way to achieve both. Rental helps offset the cost of
> ownership for lower- to middle-income members, while also bringing in
> residents who aren’t at the place in life to be able to buy.
> 
> Would renting out a basement apartment count as a separate dwelling or
> could it feasibly fall under renting a room within an owner occupied home?
> 
>> On Thu, Jul 6, 2023 at 2:37 PM Kathryn McCamant <
>> kmccamant [at] cohousing-solutions.com> wrote:
>> 
>> 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?
>> 
>> 
>> 
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