QUESTION: We are a 200-unit condo association with a 10% rental cap in our CC&Rs. An investor-owner just purchased a unit and is walking the property with a petition to change our rental cap to 25%. We have a very nice HOA of mostly all homeowners; can this investor force a change in the rental restriction?

ANSWER: Your investor-owner can force the issue onto a ballot (assuming he can get enough people to sign the petition) but only the membership can approve the change.

Petition. Anyone can circulate a petition for any lawful matter--requesting a meeting for the purpose of amending the CC&Rs is lawful. Unfortunately, it takes only 5% of the membership to set into motion the expense of a special meeting, which includes the hiring of an Inspector of Elections and the mailing of ballots.

The purpose of the meeting must be set forth in the petition so members know what they are signing. The board is allowed to verify signatures before setting a meeting date and giving notice. The board is also allowed to publish who signed the petition.

Giving Notice. The board must give notice of the meeting within 20 days from receipt of the petition; otherwise, the persons calling the meeting may set the date and give notice. Corp. Code §7511(c). The board can notify the membership that it is opposed to the amendment. In addition, board members (and other owners) at their own expense may campaign for or against the proposed amendment.