Monday, July 25, 2011

Rental Restrictions for Owners at CIDs Limited by New California HOA Law

HOA Law in California 

Homeowner associations (HOAs) at Common Interest Developments (CIDs) in California have experienced challenges with a high number of rental homes as compared with those occupied by homeowners.

High number of rentals in CIDs sometimes drives up HOA expenses and impacts property values (which is recognized by lenders, insurance companies, Fannie Mae, FHA and courts).

Trying to keep the number of rentals at low levels in common interest developments (CIDs), some homeowner associations (HOAs) enacted private rental limitations for owners in governing laws. rental restrictions

The California Association of REALTORs® recognized this change of governing documents by homeowner associations as a violation of private property rights, which prevented some owners from selling to investors.

CAR.org sponsored California Senate Bill 150 to (a) exempt owners in a common interest developments from rent restrictions unless the restriction was in effect prior to the date the owner bought into the development, and (b) require owners to provide buyers with a statement describing any provision in the governing documents that prohibits the rental or leasing of units in the development.

California Senate Bill 150 re Common Interest Developments (CIDs) was approved by both California Assembly and Senate.  On July 7, 2011, Governor Brown signed the bill into law, and it takes effect on January 1, 2012.

Click here to see this new California law re common interest developments (homeowner associations) and that rental restrictions are now limited.

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Harrison K. Long - solutions for real estate and business - REALTOR® and broker associate, GRI - Coldwell Banker Residential Brokerage - 949-854-7747 (phone) - ExploreProperties@gmail.com(email) - CA DRE 01410855 - SFR short sale and foreclosure resource certified by the National Association of REALTORs®

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