HOAleader.com - Tip of the Week - June 22, 2018
Published: Fri, 06/22/18
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California Court Throws Monkey Wrench into HOAs' Rental Restrictions
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In this week's tip, we explain a California court's ruling invalidating an HOA's rental restrictions by relying on the California Coastal Act, which protects public access to coastlines. The court held that banning or regulate short-term rentals was a decision only a city or coastal commission could make, not an HOA.
The case is Greenfield v. Mandalay Shores Community Association, and it was decided in March 2018 by a California appellate court.
The court set forth the following factual background on the case. It involves Oxnard Shores, a beach community in the Oxnard coastal zone. The court noted that it's a place where nonresidents have vacationed for decades, renting beach homes on a short-term basis.
Robert and Demetra Greenfield own a single-family residence there and began renting it out for less than 30 days at a time in 2015. Oxnard has historically treated short-term rentals as an acceptable residential activity and collected a transient occupancy tax on them.
In 2016, the city said short-term rentals weren't addressed in its code and that it was considering drafting an ordinance to establish standards to license and operate them.
Mandalay Shores Community Association is an HOA that in June 2016 adopted a resolution barring the rental of its single-family homes for less than 30 days. The ban affects 1,400 units and imposes a $1,000 fine for a first-time violation, a $2,500 fine for a second violation, and a $5,000 fine (per offense) for further violations.
In August 2016, the Coastal Commission told MSCA that its ban on short-term rentals was a "development" under the California Coastal Act and required a coastal development permit. The act defines development broadly to include any change in the density or intensity of the use of land.
The commission asked the HOA to work with the City of Oxnard and the Coastal Commission to "develop suitable regulations before taking action in the future related to short-term rentals in the community."
The Greenfields sued, arguing that the HOA's rental ban violated the coastal act. Their argument was that the HOA was required to get a permit before enacting its rental restriction and that without it, the restriction was unenforceable.
The trial court held that the HOA's short-term rental ban wasn't a "development" within the meaning of the coastal act and didn't require a permit—and therefore was enforceable against the Greenfields. They appealed.
The appellate court held that the short-term rental ban changed the intensity of use and access to single-family residences in the Oxnard coastal zone. It noted that short-term rentals were common before the ban; now they're prohibited. Ultimately, it held that short-term rental bans are a matter for a city and the coastal commission to address and that they can't be regulated by private actors where it affects the intensity of use or access to single-family residences in a coastal zone.
"The question of whether a seven-day house rental is more of a neighborhood problem than a 31-day rental must be decided by the city and coastal commission," the court concluded, not an HOA.
California lawyers are dazed and confused. Our new article explains why. Read it now at:
https://www.hoaleader.com/members/California-Court-Bars-Rental-Restrictions-Near-Coastlines-Sort-of.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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Rentals in Your HOA or Condo Getting You Down? What HOA Boards Need to Know About Regulating Rentals
Did you miss yesterday's webinar on the ins and outs of regulating rentals at your HOA or condo association? If you did, you missed a great session. But you can still sign up to watch this in-depth webinar on demand. Learn more or sign up now.
Click here to read full article:
https://www.hoaleader.com/products/regulating-rentals-in-your-hoa-webinar-b.cfm
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California Court Bars Rental Restrictions Near Coastlines (Sort of?)
A California court has invalidated an HOA's rental restrictions by relying on the California Coastal Act, which protects public access to coastlines. The court held that banning or regulate short-term rentals was a decision only a city or coastal commission could make, not an HOA.
Click here to read full article:
https://www.hoaleader.com/members/California-Court-Bars-Rental-Restrictions-Near-Coastlines-Sort-of.cfm
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Why One HOA Is Sticking with Its Monthly Hard-Copy Newspaper
In this week's tip, we talk to an HOA that's in the newspaper business. (You read that right.) Theresa Balk, the general manager at the 1,800-home Candlewick Lake HOA in Poplar Grove, Ill., is in the newspaper business at a time when traditional newspapers are struggling to stay afloat.
Click here to read full article:
https://www.hoaleader.com/public/Why-One-HOA-Sticking-with-Its-Monthly-HardCopy-Newspaper.cfm
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Newspapers? HOAs are Publishing Actual Newspapers?
Theresa Balk, the general manager at the 1,800-home Candlewick Lake HOA in Poplar Grove, Ill., is in the newspaper business at a time when traditional newspapers are struggling to stay afloat.
Click here to read full article:
https://www.hoaleader.com/members/Newspapers-HOAs-are-Publishing-Actual-Newspapers.cfm
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Another Condo/HOA Legal Trend to Watch: Dispute Resolution Requirements
More and more HOAs and condos are now required to create formal dispute resolution policies and procedures. In this week's tip, we get you up to speed on this new trend.
Click here to read full article:
https://www.hoaleader.com/members/Another-CondoHOA-Legal-Trend-Watch-Dispute-Resolution-Requirements.cfm
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