This post originally was published several months ago. It was published to reiterate the Board’s stance on the subject of rentals. Heretofore, the Board has only stated its disapproval of rentals; the subject of sanctions has not been discussed. The paragraphs in italics below are a snapshot of an email I sent out recently outlining what actions the Board may take if the no-rental order is violated.

Recently the Board consulted with our attorney and clarified language of Article XIV, Sec. 14.5, of the Master Deed. The Board found that it, on behalf of the Association, may approve or disapprove rentals as so stated in the aforementioned Section. The Board has, therefore, reaffirmed its commitment to making the Trace a community of homeowner-families as was originally envisioned. The Board states its position as follows:

No further rentals will be approved in the Trace, nor may a condominium be sold for the purpose of renting.

The Board may exercise this authority by way of the Master Deed and such authority may only be modified by a convention of the membership—i.e., the general meeting or special meeting called for the purpose. The Board will continue to allow current rentals until the subject condominiums are sold; at that time the condos must be sold to be occupied by the buyers, their families, or guests.

This morning I counseled with our attorney about a few subjects including renters.  He again confirmed all the above; so, we turned our attention to the subject of sanctions–that is, the consequences to a homeowner who violates the no-renter directive established by the Board.    Below is an outline of what is likely to happen to such a homeowner; but, I am suggesting these as options for the Board.  The Board controls scale, scope, and character of any sanctions so the sanctions may be different than those described below.

• Month 1… The Board of Directors encumbers the homeowner with a Special Assessment in a dollar amount set by the Board.   To get rid of this assessment the homeowner may either get rid of the renter and move into the condo or sell the condo.
• Month 2…If the homeowner fails to correct the renter situation or does not pay the Assessment, the Assessment may be increased.
• Month 3…If the homeowner has not corrected the renter situation and/or not paid the Assessment, the Board may begin foreclosure proceedings and force the condo to be sold to settle the Assessment arrears and find a compliant buyer.  Anyone who becomes a member of the Association, or any homeowner association, automatically agrees to such proceedings as they are written into the governing documents.

Again, this is just one plan of action the Board can take.

M Marshall/mmarsha@protonmail.com