Saturday, February 20, 2016

Amendments Proposed to Manage Condo Rentals

The time has come .
In the next few weeks, owners (members) at 900 Marshy Cove will be receive proxies and ballots to approve two amendments to our by-laws. The amendments will be presented at the
"Annual Meeting of Members" 
May 14, 2016, at 10:00 AM. 

Included in this post is the cover letter explaining the proposed amendments.
____________________________________________________________________________

February 28, 2016
To:       900 Marshy Cove Unit Owners

Re:      900 Marshy Cove Condominium Association, Inc.
            By-law Amendments limiting the number of Rental Units.


Dear Unit Owner,

The 900 Marshy Cove Condominium Association’s Board of Directors Condominium is recommending the approval of the attached amendments to our governing by-laws. The first amendment (a) limits the number of rental units to twenty (20) of the 48 units. The second amendment (b) would limit an owner to no more than two (2) units. These amendments will require 67% or 33 affirmative votes each to win approval.
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.
To that effect, the attached amendment is submitted to association members for their consideration.  



If adopted, how will this work?
·         The Board of Directors will follow written procedures to review and approve rental permits.
·         Sentry Management will manage all documents and communication with owners regarding rental policy. Very little change is required when compared to the current practices for leases.
Policies and Procedures
·         All current rentals will continue until termination or renewal. Upon renewal or a new tenant agreement, rental status will not be affected provided all required forms and documents are filed with Sentry Management and approved by the Board of Directors.
·         Each landlord will be required to submit a rental permit application as current leases expire and new lease arrangements are signed.  A 90 day grace period will be granted to find new tenants if necessary.
·         New landlords must submit a rental permit request with signed lease agreements to secure rental status. A 90 day grace period will be granted to find new tenants if necessary.
·         Once the 20 unit limit is reached, a waiting list will determine which units will be acquire rental status.
What do you need to do?
·         Please read the attached amendment.
·         Check the appropriate boxes on the proxy/ballot then sign and date the document. Your name must be registered as the owner of the unit.
·         Mail the proxy/ballot in the enclosed addressed and stamped envelope before April 15, 2016.
·         Optional: Attend the Annual Meeting of Members on May 14, 2016.
·         Check the Marshy Cove Electronic Bulletin Board at http://www.900marshycove.blogspot.com  for updates.
·         Contact Sentry Management for more details or contact a Board of Directors member with your questions.
Sentry Management Inc       cambridge@sentrymgt.com
601 Locust St Ste 302
Cambridge MD  21613

(410) 221-0398; (410) 221-9977 (fax)

________________________________________________________________

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

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