Article III – Current Restrictions
The Management Agreements provide:
1.8
Review of Tenants. Management Agent may accept applications from all prospective tenant‑shareholders, tenants, and subtenants and approve prospective tenant‑shareholders, tenants and subtenants of space being leased or subleased by the Corporation based on criteria established for occupancy pursuant to the Articles of Incorporation or the Proprietary Leases; and facilitate transfers of the Corporation's shares and Proprietary Leases held by its tenant‑shareholders; and determine the maximum price for resale of shares in the Corporation, when units shall remain vacant and under what circumstances and to whom shareholders of the Corporation may transfer shares or sublet units. Management Agent shall also supervise the moving in and out of tenant‑shareholders, tenants, and subtenants, and, as far as possible, arrange the dates thereof so that there shall be a minimum of disturbance to the Property's operation and of inconvenience to other tenant‑shareholders and tenants.
The Proprietary Leases provide:
11.
Subletting. Except as provided in Section 26 of this Lease, Lessee shall not sublet the whole or any part of the Unit or renew or extend any previously authorized sublease, unless (a) consent thereto shall have been duly authorized by Lessor and (b) any applicable requirements of the Articles of Incorporation and Bylaws of Lessor have been satisfied. Any consent to subletting may be subject to such conditions as Lessor may impose. Lessor may grant or withhold consent to a subletting for any reason or for no reason.
The Ground Leases provide:
14.
Assignment and Subletting. Except with respect to the execution of Proprietary Leases by Tenant in accordance with Tenant's Articles of Incorporation, Tenant shall not have the right to assign or to sublet all or any portion of the Land without prior written consent of Landlord, which consent Tenant agrees Landlord may withhold in its sole discretion. In the event Landlord consents to an assignment of this Lease or a subletting of all or any portion of the Land, except as herein expressly permitted or to an assignment of Tenant's interest herein, it shall be a condition of any such subletting or assignment that the sub lessee or assignee agree in writing with Landlord to be bound by each and every term, covenant and condition contained in this Lease. Furthermore, any such subletting or assignment shall not relieve Tenant of its obligations under this Lease.
The Articles of Incorporation provide:
(vii)
Permitted Occupants and Subtenants. With the prior consent of the Management Agent, a shareholder may assign or sublease his or her occupancy rights to the allocable Unit to a person who satisfies the occupancy standards established from time to time by the Board (a “Permitted Occupant”).
Any person who has been approved as a Permitted Occupant in accordance with the Proprietary Lease shall execute and deliver to the Corporation a Proprietary Sublease in such form as the Management Agent shall approve and, if requested, shall guarantee the shareholder obligations hereunder and under the Proprietary Lease. Any such assignment of occupancy rights or sub tenancy shall not operate to release the shareholder in any way from his or her obligations imposed pursuant to these Articles or the Proprietary Lease.
Article IV – Included in this Policy
A). Xx shareholders wishing to rent their homes must fill out an Application for Rental Occupancy.
B). All current shareholders in Xx who currently rent a home must fill out an Application for Rental Occupancy as a means of registering said rental with the Coop.
C). Shareholder is responsible for the collection, holding and return of Security Deposit, which is recommended to be the equivalent of one month’s rental fee.
D). The Management Agent will supply Lease form with options for shareholder, such as rental rate, length of rental and termination notice.
E). Management
- Management will provide initial consent decision before delivering to Coop Board for final approval.
Director of Operations will interview and conduct a reference check of rental candidate.
2. All expenses incurred hereunder shall be for the account of, on behalf of and at the expense of the Shareholder.
3. The Director of Operations, during the term of this lease, shall act as intermediary between Shareholder and Tenant.
4. Management shall conduct an inspection prior to and at the end of occupancy.
5. The Director of Operations, acting as the Management Agent, is authorized to lease the Unit on behalf of the shareholder. The rental will be in the form of a Sublease provided by the Director of Operations to the Shareholder.
6. Shareholder shall remain responsible for payment of the monthly fees and all other amounts due to the Cooperative under the Proprietary Lease for the Unit.
7. Shareholder shall pay to the Cooperatives a fee of $200 per month for routine services hereunder, which amount shall be deducted from the rent received from any subtenant. Additionally, Management will deduct Coop fees, including replacement reserve funding and ground lease payments, real estate taxes, and any repairs or improvements authorized by the Shareholder or necessitated by an urgent situation affecting the home or the comfort of the tenant. Shareholder shall reimburse Management for exceptional expenses of managing the Unit and carrying out its rights or obligations under this Agreement. Balances will remain in shareholder account until settlement at end of rental period.
F). The suggested rental rate will be established by XX Management.
G). A minimum rental period will be established as 3 months. Other arrangements may be entered as agreed within Lease agreement between tenant and shareholder.
H). The total number of rental units within a Coop may not exceed 7.5% of total units within that Coop. Numbers to be rounded up.
I). Coop may agree to “lend” available rental to a Coop who has reached capacity.
Article V – Specific Restrictions
A). The Coop has no authority to either enforce rules or to levy fines directly on tenants of rental properties, as this is the responsibility of the shareholder/landlord. Under this amendment there are three specific restrictions placed on the shareholder.
Breaches by the tenant of any of the governing By-laws, rules, or policies may be considered a breach of the Shareholder’s rental agreement. This requirement would allow the Shareholder to evict a tenant if appropriate.
Shareholders are required to take corrective action against a tenant, up to and including eviction if appropriate, in the event that they are advised by the Coop that a violation has taken place. The Shareholder is held to the existing ten (10) day requirement to show the Coop proof that the situation has been addressed and remedied.
Shareholders are required to provide their tenants with a copy of the association By-laws and Covenants and Restrictions prior to renting. A clause requiring the tenants to agree to abide by the Coop governing documents must be included in the rental agreement. Potential renters should be required to initial a place in the Rental agreement indicating that they have read and understand the governing documents.
Article VI – The Application Review Process
A). Applications shall be processed on a first-come, first-served basis. In order to discourage Potential Shareholders from buying multiple homes as Investment Properties, Shareholders who only own one single home will always be given first consideration to rent over Shareholders who own more than one home, regardless of the date or order received.
Applications are to be delivered to the Director of Operations for an initial consent decision before forwarding to the Coop Board for final approval.
B). The Coop Board will maintain an up to date written record of rental homes to substantiate the Shareholder Occupation vs. Renter Occupied Ratio and also a list of Shareholders waiting with Applications (in order of application). Request to the Board will be responded to in writing within 10 days.
Article VII – Violation and Enforcement
A). If an Shareholder fails to submit the required Application or rents their home anyway after the Board has denied an Application, the Board may assess a fee not to exceed $500.00 per month against the Shareholder. (The exact amount of the fine to be issued should be determined by the acting Coop Board, as long as it does not exceed this maximum. This should be a Legislative action of the Board and would not require a vote).
Article VIII – Right of Appeal
A). Appeals to fines resulting from a Violation notice, or a Legal action, must be received in writing by the Board of Directors within 15 days of the written notice to the unit Shareholder. Once an appeal is received, the Board will schedule a hearing within 10 days to review the matter with the unit Shareholder. No further action will take place pending the outcome of the appeal. If the Board does not schedule a meeting within the 10 days, as required, the matter may be considered dropped and the appeal granted. The Board’s decision on the appeal is final. If the Appeal is rejected, the violation notice becomes effective, retroactively, to three days after the original written notification to the unit Shareholder.
