Much depends on the individual facts of a particular case, but this ruling is, while not binding on Colorado courts, helpful in drawing the line between allowing owners the reasonable use of their properties and protecting the rights of those owners’ neighbors to a peaceful and residential community. As vacation rentals become increasingly popular this issue is arising across the country. The Court noted the frequency of the owner’s rentals and the fact the individual stays were often for a week or less. The second holding of note is the Idaho court’s ruling that a restriction on use of units for “single-family residential purposes only” implied a longer-term or “stable” occupancy rather than a use as a vacation hotel. While some states do follow that line of logic, Colorado (and now Idaho) are not among them. Required to abide by the rules: Buying a home or residence in an HOA community seals you into an agreement to follow the rules, even if you disagree with them. The owner argued that the original covenants only allowed an amendment to those original covenants, and the rental restriction “amendment” was an entirely new restriction. The first relates to an underlying issue when covenants are amended by the adoption of a “new” amendment. There are two interesting holdings of this case. After being fined for continuing to rent his unit in violation of the amendment, litigation ensued and the trial court ruled in favor of the association.The Idaho Court of Appeals affirmed the trial court. ![]() ![]() The amendment was approved by 89 percent of the homeowners. NovemHomeowners aggrieved by their homeowners associations (HOAs) often quickly notice when the Board of Directors of the HOA fails to follow its own rules, or otherwise conducts business in manner that appears inconsistent with the Board’s policies and procedures. After the owner’s promises to remedy the situation failed, the board sought an amendment to the covenants restricting short-term rentals (all leases had to be at least six months in duration had to be in writing and approved by the board and had to contain certain other provisions). The townhouse association pursued an action against a homeowner for short-term rentals of his unit after neighbors had complained of loud noise, parking violations, etc. In June 2015 an Idaho court ruled in favor of an HOA enforcing a covenant restricting short-term rentals (less than six months). The HOA private, corporate government provides no system of checks and balances. The HOA board members must follow the rules and regulations of the homeowners association in the way they manage and operate the entity. The HOA may not act in a capricious or discriminatory manner. The HOA must perform duties fairly and reasonably. ![]() Single-family Use Restriction Prohibits Short-term Rentals Covenants That Allow “Amendments” Do Permit Adoption of an Entirely New Covenant: To help your homeowners live the dream, let’s cover some tips for improving covenant compliance in the HOA. After the owners promises to remedy the situation failed, the board sought an amendment to the covenants restricting short-term rentals (all leases had to. The HOA must act in the community’s best interests. HOA Covenants Restricting Rentals by Paul Danborn
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