Is my HOA required by law to gather data with regard to occupancy
(owner or renter) in our development? I am unable to refinance because
most lenders require this information.
No, there is no such requirement. Some boards may have stopped tracking
rentals since they can't do anything about them--a perverse gift of the
California Association of Realtors
a practical matter, most associations provide such information (as best
they can) to assist owners with the refinancing and sale of their units
since lending institutions recognize the damaging effect too many
rentals have on property values and the stability of community
though there is no statutory duty to gather rental information, if the
matter were litigated, an argument could be made that the
information is vital to members, impossible for members to collect
but within the board's power to gather. A judge could rule that boards
have a duty to provide the information. Litigation, however, is not the
best solution because of the cost, the uncertainty of the outcome, and
the further delays it would create in the sale of units.
Lobby your board. If there is a cost to gather the data and the
board is unwilling to pay it, offer to pay. It is considerably less
expensive than litigation and will provide a much faster result.
: Associations needing legal assistance can contact us
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