Can Assoc change bylaws on me? No more leasing? - Posted by markw_mn

Posted by steele in minnesota on July 20, 2009 at 19:37:17:

One would need to examine the bylaws of the association but many times amendments can be passed by a majority of owners or some set number.

The fact that you didn’t sign on normally wouldn’t be factor. If you had continue to rent the unit your renter may have been grandfathered in but you moved back in and reestablished the unit as owner occupied.

So it could very well be right that you can no longer rent the unit.

Sorry.

Can Assoc change bylaws on me? No more leasing? - Posted by markw_mn

Posted by markw_mn on July 18, 2009 at 16:17:08:

I have a condo in Minnesota that I purchased in 2001. I lived there for 1 year and then rented it out (as allowed by the bylaws I received when I purchased the property).
In around 2005 the association passed an amendment that rentals were no longer allowed. (I did not sign any new amendment). I then moved back into the property for temporary housing in 2008 and now I found a tenant to move in Aug 1st.
I have been told by a boardmember that I can no longer rent this property. That can’t be right can it?

Thanks for any help.

Re: Can Assoc change bylaws on me? … - Posted by Frank Chin

Posted by Frank Chin on August 15, 2009 at 09:14:46:

I bought condos in MA as rentals, and had a major discussion with a RE attorney, and the developer attorney over rules on “permitting” renting. I’m told it goes like this:

  • If the approval is based on the CC&R, then it is permitted till such time the CC&R is amended, which apparently happened to you.

  • If the approval is based on an HOA board resolution, then rental is allowed for that unit regardless of what the CC&R says, and only if revoked by a board resolution, in which case the unit owner can presumably sue the HOA.

  • If the approval is granted in the deed, which can only be granted by the original “developer”, then that unit is forever a “rental”, and cannot be overruled by board resolutions and CC&R’s. It also depends on what powers the bylaws grants the developer. In this case, the HOA may make rules on rentals, such as approving tenants, which the owner may have to follow, and you may find the HOA would not approve any of your slections.

In my case, the developer refused to include rental in the deed so as not tie the HOA’s hands, so I went for the board resolution. From time to time, I do hear noises from the management compay like “who gave you the authority to rent”, I would fax the HOA resolution to them and it would shut them up for another 2 or 3 years till they got nothing else to do, and then ask me again.

Check with a local attorney - Posted by Chi Ming

Posted by Chi Ming on August 01, 2009 at 18:53:34:

This is a national/international forum and advice from one jurisdiction may not apply to another. In CA, the courts have held all sorts of pretty intrusive restrictions to be valid. In other states, that is not the case. Find out for your state.

Also, are most of your restrictions in the CC&Rs or the Bylaws. These documents take different votes to amend. CC&Rs typically require 2/3 and Bylaws a simple majority. Make sure the change matches the document its supposed to go in and the vote matches. Get a copy of the minutes where the vote was certified.

If you have a case, you may need a restraining order on fines until the court decides if they can rule out rentals without compensating you for your economic loss.