Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I think I know the answer to this but a friend who lives in a condo thinks it might be different since I live in a HOA in DE and he in a Condo in Virginia Beach. Here is his situation;
Condo board member uses her condo as a rental unit. There has been some trouble and the board members have determined that rules need to be put in place. Since renting is not specifically prohibited, she can still rent and he is fine with that, but he feels that it is a clear conflict of interest and she needs to recuse herself from drawing up rules. He feels that the conflict is because as the sole board member who rents, she and only she benefits from the lack of regulations ( i.e fees and penalties, if the new rules are passed). She was allowed to voice her feeling and a community member suggested it was a conflict at the board meeting and they now are waiting on a legal opinion.
We do not permit renting or subleasing in our HOA so it has not been a problem for us. But I think our situation is the same. We have a board member whose son owned a company that we contracted to do business with years prior to his arrival on the board, so he recused himself when it came to voting on that contract renewal to avoid even the appearance of impropriety. I see this the same way as a board member who rents his unit voting on regulations for rentals.
Typically rental rules are not enforceable in a court of law. So the condo association is wasting their time and will spend tons of money on lawyers for nothing. As for her voting.... I think its valid. Why have a group made up of people against something with no opposing side?
I think I know the answer to this but a friend who lives in a condo thinks it might be different since I live in a HOA in DE and he in a Condo in Virginia Beach. Here is his situation;
Condo board member uses her condo as a rental unit. There has been some trouble and the board members have determined that rules need to be put in place. Since renting is not specifically prohibited, she can still rent and he is fine with that, but he feels that it is a clear conflict of interest and she needs to recuse herself from drawing up rules. He feels that the conflict is because as the sole board member who rents, she and only she benefits from the lack of regulations ( i.e fees and penalties, if the new rules are passed). She was allowed to voice her feeling and a community member suggested it was a conflict at the board meeting and they now are waiting on a legal opinion.
We do not permit renting or subleasing in our HOA so it has not been a problem for us. But I think our situation is the same. We have a board member whose son owned a company that we contracted to do business with years prior to his arrival on the board, so he recused himself when it came to voting on that contract renewal to avoid even the appearance of impropriety. I see this the same way as a board member who rents his unit voting on regulations for rentals.
Any thoughts?
If she were the only member I would say yes it's an issue. Otherwise have your friend attend the next meeting and express his concerns and let him join the HOA board. A lot of people put their own interests ahead of others. This renting thing may come in handy in the future should you need to do so, so never cut off your nose to spite your face. As long as rules are followed and the tenant is screened and does not cause problems you should not have an issue, if it becomes a problem for the community then act.
In my state, Florida, you can't just change the "rules" to restrict rentals. If the association votes a change to the by-laws (the legal method for changing rental restrictions) to change any of the use rights (rentals, etc.) any owner who votes against the change is not subject to the new restrictions. Check your local laws.
In my state, Florida, you can't just change the "rules" to restrict rentals. If the association votes a change to the by-laws (the legal method for changing rental restrictions) to change any of the use rights (rentals, etc.) any owner who votes against the change is not subject to the new restrictions. Check your local laws.
It can depend on the community. Some 55 and over places do not allow rentals and if they do the person has to be a certain age and can't have school aged children because you have tax breaks for living in 55+
I don't know about the rental rules are not enforceable part....I am on my condo's board and our rules are enforceable so it may depend on the jurisdiction.
As for the OP's question, my opinion as a condo owner is that she should not only be allowed to continue to participate in the formation of these new rules, she should be encouraged because she offers a perspective that would be missing otherwise. If I was an owner, I'd want to review all of the existing condo documents to first determine:
1. Are there any rental restrictions already in existence but long ignored?
2. Is there a prohibition against an owner serving on the board if they are not actually residing in the unit?
3. What are the rules/requirements regarding the creation of new restrictions? Can the board just decide on them or must they be approved by a certain percentage of the owners?
4. Even if there are new restrictions imposed, will they be immediately enforceable with the current unit owners or will the current owners be grandfathered?
Some of these will be in the condo docs but I am sure that the association uses an attorney and, ideally, the board will ask these questions of the attorney before doing anything further.
I don't know about the rental rules are not enforceable part....I am on my condo's board and our rules are enforceable so it may depend on the jurisdiction. .
I said "in court" If you have rental restrictions, they are enforcing them and you are following them, its likely completely voluntary. Because if it went to court, the HOA would likely loose. Just because you make a rule, doesn't mean its legal. As a board member you clearly dont understand the law vs doing whatever you want.
Like some of the others have suggested, I agree, doesn't matter what rules they write, I believe in the State of VA a "super" majority is required to change by-laws. Property Owners' Association Act
I said "in court" If you have rental restrictions, they are enforcing them and you are following them, its likely completely voluntary. Because if it went to court, the HOA would likely loose. Just because you make a rule, doesn't mean its legal. As a board member you clearly dont understand the law vs doing whatever you want.
LOL....no offense but I'll take our attorney's advice over yours on whether or not our restrictions will hold up in court.
BTW, there is a difference between a HOA and a COA.
You have presented some interesting things that I obviously even consider in my opinion. I guess because I am not an attorney in my mind conflict of interest is pretty straight forward.
In our case, the sole board member "benefited" if we renewed the contract of a company that his son owned. To avoid even the appearance of impropriety, he recused himself during the discussion and voting.
So along those lines, if there are rules that would penalize or benefit only one member wouldn't that be the same thing? As I said you raised good point that I will pass on to him about the ability to sit on a board if you are not a resident.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
