HOAleader.com - Tip of the Week - February 17, 2017
Published: Fri, 02/17/17
=================================================================
When Does Clarifying Your HOA Rental Cap Require an Owner Vote?
=================================================================
In this week’s tip, we address a reader’s question on how far a board can go in implementing rules and regulations to flesh out a rental cap. Just when is it necessary to go back to owners for another vote, our reader wonders?
Rental restrictions can trigger strong emotions, and confusion over them can lead to consternation for both owners and boards.
“This is a real sensitive issue in Nevada,” reports Barbara Holland, CPM, regional manager for FirstService Residential in Las Vegas. “At one point in time, Nevada associations could amend their governing documents and impose rental restrictions.
“But during the Great Recession, we had so many vacancies in units that investors were able to convince our state legislature that if your association didn’t have a rental cap, you couldn’t implement one. And if you had one, you couldn’t make it more restrictive. That law is still on the books.”
=== Related Special Report
What HOA and Condo Boards Need to Know About Regulating Rentals
Members can download now: http://www.hoaleader.com/public/2491.cfm
Not a member? Sign up for a trial (it's free!): http://www.hoaleader.com/details.cfm
===
Associations also often try to expand the boundaries of their authority. “Rental restrictions often push for more control than boards have under their documents,” states Joshua Krut, a partner at Kopelowitz Ostrow Ferguson Weiselberg Gilbert in Fort Lauderdale, Fla. “They’re hard to pass, and they’re very unpopular. I think they’re good, and I’m a big proponent. But you have to do them legally.”
The point? Our reader first needs to check his state laws to ensure whatever provision is on his HOA’s books is permissible. But he may also be right, that his board is overreaching.
When it comes to our reader’s description of the provision in his documents, our experts need more information before they can say with certainty whether this reader can rent forever, even passing down the unit to heirs, who can also rent.
But our experts do have advice for our reader in determining if his HOA needs to hold another vote on rental restrictions. And they also tackle his question of whether heirs in his “blood line” can inherit and be grandfathered in from the restriction, in our new article:
https://www.hoaleader.com/members/2506.cfm
Best regards,
Matt Humphrey
President
=================================================================
Upcoming Event -- THIS THURSDAY!
Accommodation Requests Under the Fair Housing Act:
Best Practices to Avoid Discrimination Claims & Lawsuits
An Exclusive HOAleader.com Webinar
With Practical Tips for Condo and HOA Boards
Thursday, February 23, 2017
2:00 to 3:00 p.m. Eastern
Learn more or register now:
http://www.hoaleader.com/products/accommodation-requests-under-fha-a.cfm
Members save $30!
=================================================================
Recent articles posted at HOAleader.com:
=================================================================
When Does Clarifying Your HOA Rental Cap Require an Owner Vote?
In this week's tip, we address a reader's question on how far a board can go in implementing rules and regulations to flesh out a rental cap. Just when is it necessary to go back to owners for another vote, our reader wonders?
Click here to read full article:
https://www.hoaleader.com/members/When-Does-Clarifying-Your-HOA-Rental-Cap-Require-Owner-Vote.cfm
=================================================================
Is Your HOA Corporation Still Valid in Your State? Why You'd Better Check
California law allows the secretary of state to dissolve corporations that don't submit the proper filings with the state. The risk: A dissolved corporation may expose board members to personal liability for their actions.
Click here to read full article:
https://www.hoaleader.com/members/Your-HOA-Corporation-Still-Valid-in-Your-State-Why-Youd-Better-Check.cfm
=================================================================
4 Reasons Not to Pay Third Parties on Behalf of HOA Owners
An HOAleader.com reader writes: "[Our HOA o]wed a lot owner a refund for overcharge of dues. He requested his refund be paid out to young man maintaining his lot. Instead of writing a check to the lot owner out of the HOA account, we wrote a check to the maintenance man as requested by the lot owner. Was there a problem in doing this with all proper documentation for the check?"
Click here to read full article:
https://www.hoaleader.com/members/4-Reasons-Not-Pay-Third-Parties-on-Behalf-HOA-Owners.cfm
=================================================================
Your Owners OK'd a Rental Amendment. Is It OK to Flesh It Out with Rules?
An HOAleader.com reader writes, "Purchased unit 29 years ago. No rental restrictions. Rental since day one. New CC&Rs in 1996 adopted a 20-percent restriction on rentals. Restriction not in CC&Rs. CC&Rs refer to section in bylaws for rental limitation.
Click here to read full article:
https://www.hoaleader.com/members/Your-Owners-OKd-Rental-Amendment-It-OK-Flesh-It-Out-with-Rules.cfm
=================================================================
Indemnification and Your Management Company: What to Know
An HOAleader.com reader writes, "We're trying to negotiate a contract with a new management company. We're hung up on the indemnity paragraph. The management company so far refuses to include 'negligence' but only 'gross negligence and willful misconduct' of the company. Are most management company contracts like this?" (Read the original post on the HOAleader.com Discussion Forum.)
Click here to read full article:
https://www.hoaleader.com/members/Indemnification-Your-Management-Company-What-Know.cfm
=================================================================
Get your own copy!
Subscribe to the HOAleader.com Tip of the Week at:
http://www.hoaleader.com/public/department49.cfm
=================================================================
Please feel free to forward the *entire text* of this email to others.
Copyright 2017, Plain-English Media, LLC
(866) 641-4548
http://www.hoaleader.com