How do I challenge owner-occupancy requirements put in place by my HOA?

Question

As a father and primary bread winner, I work ~60 miles away from where I live. For over a year now, I've been commuting 120 miles round tripp daily. The employment is what allows me to pay my mortgage and homeowners association fees on time.

Due to the stress from the monster commute, my employer had actually requested that I relocate closer to work.

In the midst of the real estate market slowdown, I've tried unsuccessfully to sell my condo. As a result, I've rented a house close to my work and resorted to rent out my condo.

The catch is, the HOA has within its terms (CC&R's) a requirement that it maintains an 80% owner occupancy ratio. Because the owner occupancy ratio is well short of 80% today, the HOA is prohibiting me from renting out my condo.

Needless to say, the financial burden of paying rent on a house and mortgage on another is taken a toll on my wife and myself. The HOA terms specify that exceptions - to the 80% owner occupancy requirement - can be made for reasons of "hardship" due to employer-instigated physical relocation.

Is the HOA requirement legally enforceable in a court of law? How can I challenge this, so as to stave off financial problems down the road?

Answer 1

In Canada if you have tried to sell your condo and been unable to, you have every right to rent out the condo, no matter what the rental occupancy rate is at. As soon as you can prove it has become a financial hardship there is not much the board can do to stop you.

Write a letter to the board stating your position and failure to sell the unit. They can try to sue if they want, but have to use the contingency fund, and most likely won't bother.

Let them know you will be renting it out as you have no other option.

Good luck, it should be fine.

Answer 2

THese HOA's suck! You can only paint your house a certain color, only have two cars, can't do this. can't do that! The list goes on!! I avoid those communities like the plague when looking for a house to buy!!! The house ain't your own in essence!!! I would put your situation on the table one more time.  You were requested to relocate by your employer, to reduce the stress on you and your family, physically, having to drive so many miles back and forth to work. Make sure you put all this in writing, a formal document! State that you have attempted to sell the property (even if you DID get a buyer, the Association could rule him as undesirable! be he  pink, black or white!) The only alternative left would be to rent the property, instead of leaving it empty. Is the Association going to protect your property when you move? I think not!  I would definately take this to court, and let the judge hear your situation, also tell him, the Association's rulings, will bring financial distress on you and your family.  I don't know how much money you have got tied up in this property, but if the worse comes to the worse, go buy another house close to your job, and let the other house go back to the Lender!  It may mess up your credit somewhat, but it wouldn't be the end of the world.  Make sure you discuss this with your employer too.  Maybe he has some suggestions! Good luck and God Bless!