Saturday, June 12, 2010

Memo from the Board Re: Rental Ballot

URGENT MEMO FROM THE BOARD
The Board recommends a vote of yes to amend the CC&Rs as proposed in this ballot for the reasons enumerated below. The amendment:

1. Affords homeowners increased property ownership rights.
Currently the CC&Rs prohibit rentals in the community unless the owner is granted an exception through an appeal to the Board based on hardship. The only hardship provisions required by Utah State law for rentals are when a homeowner is deployed, a homeowner is transferred out of state for a minimum of two years, or under certain circumstances when a unit is owned by a trust or other entity for estate planning purposes.

2. Provides additional income for repair and beautification projects in the community and reduces the likelihood of future due increases.

The initial fee proposed to rent is a $20 non-refundable application fee and a $40 monthly rental fee. A maximum of 20 homes will be granted the right to rent. These fees ensure that the community as a whole will benefit from owners who temporarily rent their homes.

3. Continues to prohibit investors from purchasing homes with the intent to rent.
Under the proposed amendment to be eligible to rent the owner must have occupied the home for at least 12 months. Thus sales to investors will continue to be inhibited and the amendment will continue to promote an owner occupied community.

4. Grants greater control of community rentals to the Association.
It has been difficult for the Board to become aware of rentals in the community and penalize those in violation of the CC&Rs. This policy and the fines for those who rent without authorization encourage homeowners to apply through the proper channels instead of violating the rules and hoping not to get caught. Through the rental application process the Board will ensure owners are current on their dues, will require a copy of the lease agreement, credit checks, and reserves the right to evict renters who violate the CC&Rs.

5. Allows temporary relief to those who seek to rent but do not meet the hardship requirements as defined by the state of Utah.
There are homeowners who have requested permission to rent based on a variety of reasons. The current CC&Rs do not have provisions to allow rentals that are not necessitated due to hardship. Individuals are thus faced with the decision to sell at significant financial loss to relocate for reasons other than hardship. The ability to apply for the right to rent for up to 24 months provides temporary relief to individuals in our community who desire to move but cannot afford to sell in this depressed market.

6. Potentially reduces below market sales by providing another option for homeowners thus helping preserve community property values.
Instead of walking away from their homes and selling at below market prices (short sales and foreclosures) individuals may apply to rent and postpone property sales until home values may have recovered or additionally equity has been gained.

PLEASE NOTE: Multiple notifications have been sent regarding the rental policy. Those who deliberately violate this policy will be subject to fines of up to $25 per day per the CC&Rs. Those who have been in violation of this policy to date are also subject to fines.

YOUR VOTE COUNTS. To amend the CC&Rs we must receive a yes vote from 70 of the 109 homeowners in our community by June 25, 2010. Thank you for your thoughtful and careful attention to this matter.

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