Rental Restrictions in Mississippi

Question:

Can my HOA restrict rentals in our community without an amendment to our declaration? Furthermore, we have already voted against restricting the number of units that can rent at our last annual meeting and it did NOT pass. So now the board is trying to say it can impose a “policy” to restrict rentals instead of passing an amendment.

Our declaration states 12.07 Leases: It shall be deemed to be the intent of all who take title subject to the terms of this Declaration that this shall be a “lease restred” development. Entire units maybe be leased by the unit owners; provided, however, that such lease and the rights of any tenant thereunder are hereby made expressly subject to the power of the Association to prescribe reasonable rules and regulations relating to the lease and rental of units and to enforce the same directly against such tenant and other occupant by the exercise of such remedies as the Board deems appropriate including eviction.

13.01 This Declaration and the By-Laws of the Association may be amended by a vote of two-thirds (2/3rds) of the Board, with any such amendment to be ratified by a majority of Unit Owners at the next annual meeting of Owners or by a specially called meeting of Owners. However, the provisions of this Declaration found in Article 12.07 providing for certain lease
provisions may be amended by the affirmative vote or agreement of Unit Owners to which at least two-thirds of the votes in the Association are allocated. Each deed, mortgage, trust deed, other evidence of obligation, or other instrument affecting a Unit and the acceptance thereof
shall be deemed to be a grant and acknowledgment of, and a consent to the reservation of, the power of the Developer to make, execute and record Special Amendments. Anything else to the contrary notwithstanding, in compliance with Federal National Mortgage Association (FNMA)
guidelines, amendments of a material nature must be approved by at least the Owners of sixtyseven (67%) of the Units, and by Mortgagees who represent at least fifty-one percent (51%) of the Units that are subject to mortgages held by Mortgagees.

– Jennifer

 

Answer:

Hi Jennifer,

If the policy does not conflict with the declaration, then the board can theoretically impose such restrictions as a policy. Your declaration does specify that “such lease and the rights of any tenant thereunder are hereby made expressly subject to the power of the Association to prescribe reasonable rules and regulations relating to the lease and rental of units.” Therefore, the Association can prescribe reasonable rules and regulations concerning rentals. However, to be more exact, it is best to ask a lawyer to interpret your declaration and see if the board can pass a resolution imposing a rental policy.

Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.

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