1. Owners of Record, on or before March 1, 2016, will always be able to rent out their units at any time, for as long as they own their unit.
2. Owners who purchased after March 1, 2016 will be subject to a 25% cap on total number of rented units. (The current percentage as of March 31, 2016 is 30%).
3. Status of owner's (who purchased on or before March 1, 2016 ) rights to lease shall not transfer to a new owner upon the sale of the unit. The right to lease will pass to a new owner only if the title is transferred to a spouse, former spouse or placed in a revocable family trust.
*A more detailed explanation of this can be found below in an excerpt from the original Proxy.
Leasing Process for new owners of record after March 1, 2016.
1. Until such time as the total number of rented units falls below 25%, a new owner (purchasing after March 1, 2016) can place their name on a waiting list of New Owners wishing to rent out their units.
2. Once a new owner is notified that they could rent the unit, that owner must accept or reject the offer of availability within 30 days.
3. If the offer is accepted, then the owner will have 90 days from the date of the original notice to complete the leasing process.
4. If the owner fails to lease within the 90 day window, the owner can be removed from the waiting list.
5. Hardship exemptions may be considered, but will require Board approval.
*Leasing of Units Restricted For New Owners Only. Effective March 1, 2016, except as permitted by subsections 1 through 4 of this Section 7.01(n)(i-a), no Unit Owner may (a) enter into or renew any "Occupancy Arrangement" (as hereinafter defined) with respect to any Unit, or (b) allow any person who is not a Unit Owner to occupy a Unit pursuant to an Occupancy Arrangement; provided, however, that the Unit Owner of a Unit on March 1, 2016 may continue to enter into or renew Occupancy Arrangements with respect to that Unit and may continue to allow persons who are not Unit Owners to occupy that Unit pursuant to Occupancy Arrangements, for as long as that Unit Owner remains the owner of that Unit. As used herein, "Occupancy Arrangement" means a lease or other agreement or arrangement, whether written or oral, whereby a Unit Owner authorizes a non-Unit Owner third party to have exclusive use and occupancy of a Unit, regardless of the form of consideration, if any, paid, exchanged or otherwise provided between the Unit Owner and the non-Unit Owner third-party.
1.Less Than 25% of Units Rented. Any Unit Owner who purchases after March 1, 2016 may enter into an Occupancy Arrangement with respect to a Unit upon receipt of written confirmation from the Management Office that the total number of Units then subject to Occupancy Arrangements (other than “Family Occupancy Arrangements” as defined below) is less than Twenty-Five Percent (25%) of all of the Units in the Association.
2.Hardship. Any Unit Owner who purchases after March 1, 2016 may, upon receipt of the Board’s prior written approval, enter into an Occupancy Arrangement with respect to a Unit for a period not to exceed one year if the existence of a Hardship Situation (as hereinafter defined) is demonstrated to the reasonable satisfaction of the Board. In the case of a continuing Hardship Situation, the Board may authorize a Unit Owner to enter into a second Occupancy Arrangement with respect to a Unit for a period not to exceed one additional year. As used herein, a "Hardship Situation" means a situation in which an Owner has been unable to sell a Unit, despite good faith efforts to sell the Unit for more than ninety (90) consecutive days at a reasonable price and through a qualified realtor, and the inability to lease the Unit will subject the Owner to financial hardship.
3. Family Occupancy Arrangement. Any Unit Owner who purchases after March 1, 2016 may enter into an Occupancy Arrangement with respect to a Unit with his/her parents, spouse, former spouse, civil partner, children (natural or adopted), grandparents, grandchildren, or siblings.
4. Unit Owned or In Possession of the Association. The Association may enter into Occupancy Arrangements with respect to any Unit of which the Association is the Unit Owner or party in possession.
For purposes of this Section 7.01(n)(i-a) only, the pre-March 1, 2016 Unit Owner of a Unit will be deemed to continue to be the Unit Owner of that Unit notwithstanding any of the following transfers: (a) transfer of ownership of a Unit to a living trust or similar estate planning trust by a pre-March 1, 2016 Unit Owner, for as long as the pre-March 1, 2016 Unit Owner is alive and acting as a trustee under that trust; or (b) transfer of a Unit to a land trust, for as long as the pre-March 1, 2016 Unit Owner is alive and the sole or majority beneficial owner of that land trust.