900 Marshy Cove Board of Directors Meeting, Rental Units

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.

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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."

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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.

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Questions? Comments? Send them to mc900@comcast.net

More to come on this subject over the next few weeks.