7.5 Leasing. Grandfathered owners as of 8/7/2020. Lots may be leased for residential purposes. Unless otherwise provided by the Board of Directors, all leases shall have a minimum term of at least six months. All leases shall require, without limitation, that the Occupants acknowledge receipt of a copy of the Declaration, Bylaws, use restrictions and rules and regulations of the Association.
7.5 Leasing. Owners after 8/7/2020. In order to preserve the character of the subdivision as primarily owner-occupied the leasing of Lots shall be governed by this Section 7.5. No leasing of Lots is permitted except as provided herein. The Board of Directors shall have the power to make and enforce reasonable rules and regulations in accordance with the Declaration and Bylaws, in order to enforce the provisions of this Section.
(a) Definition. “Leasing” for the purposes of this Declaration, is defined as the regular occupancy of a Lot by any Person other than the Owner. The term leasing shall expressly include, without limitation, (1) occupancy of a Lot under a lease-purchase arrangement; (2) occupancy under a house sitting arrangement for the purpose of maintaining occupancy of a Lot pending the sale of the Lot, and (3) any short-term or transient occupancy arrangements. Transient occupancy of a Lot is prohibited. A Lot is considered to be leased hereunder even if no rent is paid to the Owner. For purposes hereof, occupancy by a roommate of an Owner or by the Owner’s immediate family members shall not constitute Leasing hereunder. Any transaction which does not comply with the provisions of this Section shall be void unless subsequently approved by the Board of Directors in writing.
(b) General. An Owner desiring to lease his Lot may do so only if he has applied for and received from the Board of Directors either a “Leasing Permit” or a “Hardship Leasing Permit.” Such a permit upon its issuance, will allow an Owner to lease his Lot provided that such Leasing is in strict accordance with the terms of the permit and this Section. The Board of Directors shall have the authority to establish terms and conditions as to the duration and use of such permits consistent with this Section. The Board of Directors may revoke, without further notice, or refuse to issue a Leasing Permit or Hardship Leasing Permit if the Owner is shown on the Association’s books and records to be more than thirty (30) days delinquent in the payment of any assessment or charge owed to the Association or if the Owner and/or occupant or any guest of the Owner or occupant violates the Declaration, Bylaws, rules and regulations or any applicable laws or ordinances. All Leasing Permits and Hardship Leasing Permits shall be valid only as to a specific Owner and Lot and shall not be transferable or assignable between either Lots or Owners, or any successor-in-title.
(c) Leasing Permits.
(i) Grandfathered Owners. All Owners as of the Effective Date of the Amendment are grandfathered and exempt from terms of this provision and do not need a Leasing Permit to lease their Lot. The Amendment shall only apply to subsequent purchasers after the Effective Date.
(ii) Non-Grandfathered Owners. A non-Grandfathered Owner is an Owner who purchased subsequent to the Effective Date of this Amendment. A request for a Leasing Permit for a non-grandfathered Owner, shall be approved if current, outstanding Leasing Permits have not been issued for more than ten percent (10%) of the total number of Lots in the Community (“Leasing Cap”). In order to be eligible for a Leasing Permit, an Owner must have occupied the Lot as the Owner’s primary residence for a period of at least twelve (12) consecutive months. A Leasing Permit shall be automatically revoked upon the happening of any of the following events: (i) the sale or transfer of the Lot to a third party (excluding sales or transfers to (a) an Owner’s spouse, (b) a person cohabitating with the Owner, and (c) a corporation, partnership, company, or legal entity in which the Owner or such Owner’s spouse are the sole principals); (ii) the failure of an Owner to lease his Lot within ninety (90) days of the date the Leasing Permit was issued; (iii) the failure of an Owner to have his Lot leased for any consecutive ninety (90) day period thereafter; (iv) the Owner moves back into the Lot; or (v) the occurrence of the date referenced in a written notification by the Owner to the Association that the Owner will, as of said date, no longer need the Leasing Permit.
If current Leasing Permits have been issued for the maximum number of Lots permissible under the Leasing Cap, no additional Leasing Permits shall be issued (except for Hardship Leasing Permits) until the number of outstanding current Leasing Permits falls below the Leasing Cap. An Owner of a Lot who has been denied a Leasing Permit shall automatically be placed on the bottom of the waiting list for a Leasing Permit and shall be issued a Leasing Permit if the Owner so desires when the number of current outstanding Leasing Permits issued falls below the Leasing Cap. The issuance of a Hardship Leasing Permit to an Owner shall not cause the Owner to be removed from the waiting list for a Leasing Permit.
(d) Hardship Leasing Permits. If the failure to lease will result in a financial hardship, the Owner may seek to lease his Lot on a hardship basis by applying to the Board of Directors for a Hardship Leasing Permit. The Board of Directors shall have the authority to issue or deny requests for Hardship Leasing Permits in its sole discretion after considering all factors including the following: (i) the nature, degree, and likely duration of the hardship, (ii) the harm, if any, which will result to the Community if the permit is approved, (iii) the number of Hardship Leasing Permits which have been issued to other Owners, (iv) the Owner’s ability to cure the hardship, and (v) whether previous Hardship Leasing Permits have been issued to the Owner. Hardship Leasing Permits shall be valid for a term not to exceed one (1) year. Owners may apply for additional Hardship Leasing Permits. Hardship Leasing Permits shall be automatically revoked if, during the term of the permit, the Owner is approved for and receives a Leasing Permit.
(e) Leasing Provisions. Leasing which is authorized pursuant to a permit hereunder shall be governed by the following provisions:
(i) Notice. Prior to entering into the lease of a Lot, the Owner shall provide the Board with a copy of the proposed lease agreement.
(ii) General. Lots may be leased only in their entirety; no fraction or portion may be leased without prior written Board approval; provided, however, that an Owner may lease a portion of his Lot if the Owner is also to occupy the Lot on a full-time basis. All leases shall be in writing. There shall be no subleasing of Lots or assignment of leases without prior Board approval. All leases shall be for an initial term of not less than one (1) year, except with the prior written approval of the Board of Directors. Within ten (10) days after executing a lease agreement for the lease of a Lot, the Owner shall provide the Board with (a) an executed copy of the lease, (b) the name(s) of the lessee and all other Persons occupying the Lot along with their respective phone numbers and email addresses, (c) the Owner’s phone number, email address, and physical address to be occupied by the Owner while the Lot is leased, and (d) such other information as may be required by the Board. The Owner must provide to the lessee, at Owner’s sole expense, copies of this Declaration, Bylaws, and the rules and regulations (hereinafter the “Governing Documents”). Nothing herein shall be construed as giving the Association the right to approve or disapprove a proposed lessee; the Board’s approval or disapproval shall be limited to the form of the proposed lease.
(iii) Lease Terms Exhibit. The provisions of the Lease Terms Exhibit attached hereto and incorporated herein by reference are incorporated into each lease of any Lot executed, modified, renewed or extended after the Effective Date of this Amendment, whether or not expressly stated therein, and into the terms of any tenancy or occupancy of a Lot even if no written lease or agreement exists between the Owner and the occupant. If an Owner fails to provide the Association a copy of the lease and notice of leasing as provided herein, or otherwise leases a Lot in violation of this Section, the Association may fine the Owner an initial fine of $250.00, plus additional daily fines for continued violation of these provisions. Owner agrees to be jointly and severally liable with Owner’s tenants for payment of all fines and other charges which become due as a consequence of such tenant’s activities, including, but not limited to, activities which violate provisions of the Association’s governing documents.
(f) Occupancy of Lot Owned by Entity Owner or Minority Interest Co-Owner. If an Owner of a Lot is a corporation, limited liability company, partnership, trust or other legal entity not being a natural person (hereinafter, an “Entity Owner”), or if an Owner of a Lot is comprised of more than one (1) person holding undivided percentage interests (hereinafter, a “Co-Owned Lot Owner”), the Entity Owner or Co-Owned Lot Owner shall designate in writing to the Board the name(s) of the Person(s) who will occupy the Lot.
Neither an Entity Owner nor a Co-Owned Lot Owner may change the designated Person(s) to occupy the Lot more frequently than once every twelve (12) months, without the express written consent of the Board as determined in the Board’s sole discretion. An Entity Owner or Co-Owned Lot Owner shall provide such documentation as is required by the Board to determine, in its sole discretion, that a Lot is not being leased in violation of the Declaration. Failure to provide the required documentation shall be sufficient grounds for the Board to prohibit occupancy of the Lot by the designated occupant. Notwithstanding anything contained herein to the contrary, the Board may prohibit occupancy of the Lot by a Person designated for occupancy by the Entity Owner or a Co-Owned Lot Owner as an owner occupant Lot if the Board determines, in its sole discretion, that the occupancy arrangement is in substance a lease and was created for the purpose of circumventing the leasing restrictions set forth in this Section 7.5. If an Entity Owner or Co-Owned Lot has been issued and maintains a valid Leasing Permit or Hardship Leasing Permit from the Association, such Entity Owner or Co-Owned Lot Owner shall comply with all requirements of this Section 7.5 applicable to leasing of Lots.
(g) Advertising for Lease. No Owner or occupant shall list, market or advertise his Lot, or any portion thereof, for lease or occupancy, for an initial term of less than one (1) year, without prior Board approval. Owners or occupants who list, market or advertise their Lot, or any portion thereof, for lease or occupancy, for an initial term of less than one (1) year without prior Board approval, shall be subject to a fine of up to $50.00 per day per listing or advertisement, as may be determined in the sole discretion of the Board of Directors, for each day such listing, marketing, or advertising continues or exists.
(h) Leasing Administration Fee. It is recognized that the leasing of Lots creates substantial administrative costs and other burdens on the Association, including, but not limited to, having to monitor new leases and/or lease renewals, and obtaining and updating contact information for new tenants in the Association’s records. In addition to the other assessments and charges provided for in this Declaration, the Association shall have the authority to assess the Owner of a leased Lot an annual leasing administration fee (the “Leasing Administration Fee”) in an amount equal to fifty percent (50%) of the annual assessment for the then current fiscal year. The Leasing Administration Fee shall constitute a specific assessment and shall be collected in the same manner provided in Declaration for the collection of other assessments.
(i) Association Remedies. Failure to comply with any of the provisions of this Section 7.5 or the rules and regulations regarding leasing shall also result in a suspension of (1) the Owner’s right to vote in Association matters, and (2) the Owner’s and any occupant’s or tenant’s right to use the Common Property.”
West River Place Homeowners Association 