Question:
At our annual meeting, both board members and homeowners agreed that
restrictions on buyers were needed for the HOA to continue business. We want to stop the purchasing of homes by corporations/hedge funds, basically any entity that is not an individual. We are located in North Carolina, one of the 4 top states enacting changes to stop corporate entities from eating up residential/single family homes.
I look forward to your response.
– Rebecca
Answer:
Hi Rebecca,
It may be best to consult a lawyer regarding this issue as it may come into conflict with fair housing laws. However, the HOA may consider enacting certain rules that may limit this activity. For example, the community may enact rules such as minimum ownership terms before buyers can rent out a property, limiting short-term rentals, specifying the homes must be occupied by owners for a certain time within each year, or limiting the percentage of homes corporations may own. Kindly consult a lawyer as they may be able to help you understand more about the legal complexities of limiting corporate ownership and how to implement rules to support it.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
