HOA banning rent/lease of homes

[DainBramaged64]

What is the name of your state? Michigan

Is it legal for a HOA to ban the rent or leasing of homes in the community? The reason they give, lower property values, seem to be very legally weak if challenged in court, with the assumption that renting/leasing a home brings in a lower class of people.

[FarmerJ]

If you already own a home that has covenants written and in place when you bought it and the issue was not addressed at the time you bought it then its likely that they cannot add it in afterwards. SO your best bet is to use the links up top to locate a real estate atty and have her/him review all the documents pertaining to the home and restrictions in place at the time it was purchased . This way the atty can give you a opinion as to wether they can indeed impose any new restrictions. If you learn that no changes can be made by them then feel free to tell them they are full of bovine excrement.

[nextwife]

Originally Posted by FarmerJ

If you already own a home that has covenants written and in place when you bought it and the issue was not addressed at the time you bought it then its likely that they cannot add it in afterwards. SO your best bet is to use the links up top to locate a real estate atty and have her/him review all the documents pertaining to the home and restrictions in place at the time it was purchased . This way the atty can give you a opinion as to wether they can indeed impose any new restrictions. If you learn that no changes can be made by them then feel free to tell them they are full of bovine excrement.

I handled the sales by a municipality of two entire subdivisions of excess school district land. It was REQUIRED that all buyers occupy within one year of purchase. THe idea being, not a class issue, but that homeowners are vested in the neighborhood they live in, and more inclined (theoretically) to care about the well-being of the neighborhood/the schools, and the home, than renters, who can relocate with far less problem,.

If there is a E&R limiting non-owner occupancy, it IS legal!

[DainBramaged64]

Thank you for the replies, I should have mentioned that the current CCRs allow rent/leasing of homes and the board wishes the homeowners to vote upon this issue at the next HOA meeting, I just wanted to be able to correctly defend my opposition to this proposal.

Originally Posted by nextwife

The idea being, not a class issue, but that homeowners are vested in the neighborhood they live in, and more inclined (theoretically) to care about the well-being of the neighborhood/the schools, and the home, than renters, who can relocate with far less problem.

I had the same thoughts as you and agree in principle, but I can drive through my neighborhood and point a finger at many homeowners that have been less inclined to care for the well-being of their homes. I have a problem with social-economic classifications of people and grouping a renter into sub-class of people is not justifiable (I understand your description is not class based Nextwife), but others not always think that way and the people asking for the vote are thinking social-economically. The HOA has gotten into legal trouble in the past for questionable rule additions and I just want to understand if this can become another legal land mine for the association.

[IndianaOwner]

If all the owners agree, then yes it can be done.

If not unanimous, can you force an existing homeowner with following this new rule? I doubt it...to be able to rent is a valuable property right. Better to have existing homes grandfathered so it is phased in over time...that will at least stop the bleeding and begin a reversal.