How to stop a management company from driving down the value of a development? It seems that an outside person is buying up properties at a low price and renting them without HOA permission. HOA has become defunct. How can this be stopped?
Check your HOA’s governing documents. Your bylaws and CC&Rs should tell you whether or not rentals are permitted in your community. If they are permitted, your HOA board can change that by amending the governing documents. In Connecticut, amendments will require a vote from the membership. Section 47-236(f) of the Connecticut Common Interest Ownership Act states:
“(f) An amendment to the declaration may prohibit or materially restrict the permitted uses or occupancy of a unit or the number or other qualifications of persons who may occupy units only by vote or agreement of unit owners of units to which at least eighty per cent of the votes in the association are allocated, unless the declaration specifies that a larger percentage of unit owners must vote or agree to that amendment or that such an amendment may be approved by the unit owners of units having at least eighty per cent of the votes of a specified group of units that would be affected by the amendment. An amendment approved under this subsection must provide reasonable protection for a use or occupancy permitted at the time the amendment was adopted.”
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.