Home › Forums › Real Estate › What are other condo associations doing, if anything, to limit renting to comply with mortgage financing rules (such as those under FHA)? › Reply To: What are other condo associations doing, if anything, to limit renting to comply with mortgage financing rules (such as those under FHA)?
Your association needs to adopt covenants requiring owner occupancy as their legal, primary residence for a minimum of something like 2 years, and that all sales contracts carry that stipulation. They must impose a maximum number of rentals that are allowed at any time; require that any owner wishing to rent must obtain association approval before letting, and such approval cannot be granted if it jeopardizes the owner-occupancy requirements. Set higher condo fees for rental units. Add a convenant that the association may revoke its authorization for any rental, requiring the owner either reestablish primary residence or put the unit up for sale within 60 days. Diminish the voting rights of absentee owners so they cannot vote unless granted permission for a specific matter. For owners who do reside in the building, limit them to only 1 vote if they own more than one unit.
The problem (not just in DC) is a lot of condos lack a solid core of long-time residents to ensure there is continuity of policy and enforcement. If you don’t have enough owners willing to stand together and enforce the rules, it doesn’t matter what the condo documents say. You need to organize your resident owners, take inventory of your association rules, make any needed changes to tighten them up, and then lay down the law.