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Dimitry Esquire
Dimitry Esquire, Attorney
Category: Real Estate Law
Satisfied Customers: 41221
Experience:  JA Mentor, multiple jurisdictions, specialize in business/contract disputes, estate creation & admin
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I'm a unit owner of a condo and the board passed a rule, or

Customer Question

I'm a unit owner of a condo and the board passed a rule, or rather the board has voted that any owner that uses their unit as a rental has to pay an administrative fee of$1000 when a new tenant moves in and for each year that the lease is renewed. I never received written notification of this rule, or the minutes from this particular meeting. Is this legal? They want a fee every year when the lease is renewed. If it is the same tenant, why is there an administrative fee?
Submitted: 2 years ago.
Category: Real Estate Law
Expert:  Dimitry Esquire replied 2 years ago.
Thank you for your question. Please permit me to assist you with your concerns.
When was this rule passed? Was this an 'open' meeting that other members could attend? Was there any fee in the past?
Customer: replied 2 years ago.
I don't know. I have asked for a copy of minutes but never got one. And yes it was an open meeting where unit owners could attend. No there was no fee in the past.
Customer: replied 2 years ago.
That's all I know. I just received approval for a new renter and a note attached to the approval saying administrative fee will be increased as of July, and I have a 45 day before renewal to notify the board and send in the fee.
Customer: replied 2 years ago.
45 day before renewal of lease to send in fee and notify the board.
Expert:  Dimitry Esquire replied 2 years ago.
Thank you for your follow-up.
In that case I am afraid that such limitations are legally permitted. In a situation with an HOA, so long as the HOA properly votes on the change and the members approve it, it is deemed binding unless it somehow violates state law. Restrictions (or fines) on renting do not violate the law. You, however, can potentially request a hearing in front of the Board and ask that they potentially evaluate, review, or even waive this in your favor if you can prove that it creates a substantial amount of hardship for you. But otherwise HOAs are self-regulating and that does permit them to limit renting or issue fines, even such large fines for non-compliance.
The reason I asked about the meeting is that perhaps one way to challenge the vote is to see if it was somehow in violation of your own bylaws--for example if the meeting did not have quorum as that would bar the ability to vote, or if other steps were not followed. But if the steps were followed, such a change is permitted.
Dimitry, Esq.

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