Condo owners and renters

[Katietuc]

About 20 years ago, the condo complex where I now live in upstate New York was actually an apartment complex. The person who owned the apartment complex had to abide by state laws when converting it to a condominium complex. One stipulation was that a certain percentage had to be owned by people who actually lived in the condo and were not renters. Now, it's 20 years later and people are starting to rent out their condos again. They own their condo but live elsewhere. The people who live in and own their condo are concerned the value of their property may go down with so many renters. Also, mortgage companies phone the association at times to check on the owner- renter ratio and some people trying to buy have been turned down by mortgage companies because the mortgage company says too many people rent in our complex and it would be a bad risk. Are their laws that protect the owners? Can we put in the rules that the condos cannot be rented? Is there a certain quota regarding condo associations and renters that mortgage companies look at when they decide to approve a loan? If so, what is the % for New York. Thanks for your help.

[This message has been edited by Katietuc (edited October 25, 2000).]

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Katietuc:
About 20 years ago, the condo complex where I now live in upstate New York was actually an apartment complex. The person who owned the apartment complex had to abide by state laws when converting it to a condominium complex. One stipulation was that a certain percentage had to be owned by people who actually lived in the condo and were not renters. Now, it's 20 years later and people are starting to rent out their condos again. They own their condo but live elsewhere. The people who live in and own their condo are concerned the value of their property may go down with so many renters. Also, mortgage companies phone the association at times to check on the owner- renter ratio and some people trying to buy have been turned down by mortgage companies because the mortgage company says too many people rent in our complex and it would be a bad risk. Are their laws that protect the owners? Can we put in the rules that the condos cannot be rented? Is there a certain quota regarding condo associations and renters that mortgage companies look at when they decide to approve a loan? If so, what is the % for New York. Thanks for your help.

[This message has been edited by Katietuc (edited October 25, 2000).]<HR></BLOCKQUOTE>

There is no law that states that only owner occupants may live in a condo complex and renters are prohibited. To prohibit renters is discrimination.
Generally mortgage companies require a ratio of 50-70% owner occupants and each mortgage company has their own criteria. The higher the percentage of owner occupants the better.
If the owner has an owner occupant loan and rents the property out within the first year, that may be a violation of Federal laws.