Cohousing-L Mailing List: Re: Rental policies?

[Diana Carroll (dianaecarroll]

If this applied to us (it doesn't, we are in MA) I would double check
Raines' understanding and make sure that it doesn't require lien-holder
consent, as well.

Our lawyer told us when creating our CCRs/condo docs that to modify the
documents would require consent of every owner AND of every lienholder, ie:
all the mortgage lenders.  This makes sense, because the banks do review
the condo docs before writing the mortgage to begin with, so they want to
make sure they won't be changed out from under them.

I have no idea of this new law has similar restrictions.  Or, more to the
point, whether a CA court would find in favor of a mortgage company who had
an opinion on the subject.

- Diana

On Mon, Nov 14, 2011 at 2:05 PM, Raines Cohen <rc3-coho-L [at] raines.com> 
wrote:

>
> Actually, this California law doesn't necessarily affect us (or most
> other cohousing neighborhoods), really. Here's why:
>
> All it does is add the requirement that new restrictions can't be
> imposed as of next year without the agreement of the people
> (condo-owners) being restricted.
>
> > Beginning January 12, 2012, any new governing documents (e.g., CC&Rs,
> Bylaws or Rules and
> > Regulations) or any amendment to any of those documents that includes a
> prohibition on rental or
> > leasing will not apply to anyone who purchased before the date the
> governing document and/or
> > amendment was adopted or recorded unless that person consents to be
> bound.
>
> Those last 7 words are the key - it doesn't prohibit setting limits on
> renting, just says you need the consent of the members, not just an
> elected board.
>
> In other words, it mandates consensus!
>
> It's actually not as strong as that, since you only need the consent
> of the people renting out.
>
> Since we already use consensus, we couldn't impose any restrictions
> without the participation/consent of everybody anyways. Yes, in theory
> the law could be an issue if we are unable to reach consensus and
> pursue backup voting, but that's extremely rare.
>
> So while it would be, I believe, fruitful to have these conversations,
> we can pursue the full arc of discussion without the time pressure
> that this deadline would force on us.
>
> Raines Cohen, Cohousing Coach, East Bay Cohousing
> at Berkeley (CA) Cohousing
>   where none of our 14 homes are currently rented and there are
> currently no limits on renting; for several years, one home was rented
> out, with mixed results (challenges for both the renters and the
> community) until the community participated in the process of finding
> a renter and supported the homeowner in creating space for the tenant
> (a "recycled cohouser" from another cohousing neighborhood) to
> participate and flourish in community. Our last resale was eight years
> ago; half of our founding members are still here after 17 years. We do
> have a couple housemate room-renters who do participate in the
> community.
>
> On Wed, Nov 9, 2011 at 1:40 AM, Marty Roberts <martyr [at] sonic.net> wrote:
> >
> > We here at Two Acre Wood in Sebastopol are in the thick of a
> > discussion about home rental policies and amending our CC&R's.  Many
> > of you probably know about the law going into effect Jan. 1 that will
> > not allow CC&R's to limit rentals if the don't already have this in
> > their CC&R's.
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