The Board has approved a motion to seek amendment to the
900 Marshy Cove Condominium Association By-laws.
Below are the By-law changes which would place limitations on the number units that can be rented at twenty (20) and limitations on the number of units one party may own at two (2).
These amendments will
require 67% or 33 affirmative votes from the 48 unit owners to win approval.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Article X, Section 2 is amended by
adding the following Subsections (a) and (b) to the end of Article X, Section 2:
ARTICLE X: USE RESTRICTIONS
Section
2. Leasing.
"(a) The maximum number of
rental units within the Condominium may not exceed twenty (20) units. In order
to confirm that the maximum allowable rental units within the Condominium has
not been exceeded, all lease agreements must be submitted to the Board of Directors
prior to execution by the Unit Owner. Notwithstanding the above, any lease or sublease
or tenancy arrangement in existence on the date of this Amendment to the
By-Laws is recorded may continue until its expiration or the Unit is sold,
whichever comes first."
"(b) A Single Entity may own
no more than two (2) units within the Condominium. A Single Entity shall be
defined to include, but shall not be limited to, an individual, an investor group,
partnership, corporation, or LLC."
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Why Rental Limitations?
·
The percentage of
rental units affects financing options. Federally underwritten financing such
as VA, FNMA, FDMA, and FHA require more restrictive terms on multi-unit
condominium buildings where rental units exceed 50%.
·
Current Occupancy Status
o
Full time owner
occupied: 13 units
o
Part time owner
occupied: 20 units
o
Tenant occupied: 15 units
·
An increasing
number of units are now occupied by tenants as opposed to owners. As this transition occurs, it is in the best
interest of resident owners, part-time resident owners, and landlord owners
that we maintain a balance between these three categories. Resale values of our units are affected by
the residency of non-owners because of limited financing options and the
perceptions held by prospective buyers.
·
Please note that
similar restrictions have been successfully and widely instituted into the by-laws
of other condominium associations in the State of Maryland. Maryland
Condominium Law permits such restrictions.
Association members/owners will receive a ballot seeking their approval. Hopefully, all proceedings will be completed before the Annual Meeting of Members scheduled for May 14, 2016.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
More to come on this subject over the next few weeks.
