New Plaza Leasing Policy
On May 7, 2012, the Board released a memorandum about leasing policy and restrictions for units in New Plaza. The full memo is copied below for your reference.
May 7, 2012
Dear New Plaza Owners:
As you should all be aware, your ability to lease out your unit is subject to certain restrictions contained in the Association's Bylaws and House Rules. These restrictions impose limitations on the total number of units which may be rented in the building at any one time and set forth the process by which the Association implements the restrictions. Specifically, large numbers of rentals can adversely impact market values in two ways: 1) Condominiums with a large number of renters are less desirable to purchasers, and create a building environment that is more transient and less considerate of rules and the building generally; 2) If a building exceeds certain thresholds of non-owner-occupants, then some types of financing (such as FHA loans) won't be available to potential purchasers, making it harder to sell.
Please be advised that we have owners that are flouting the rules i.e. by refusing to stop leasing their units after their 36 month term has expired, which is extremely unfair to other owners that wish to rent out their units – including those with bona fide hardships. Because of this, the Board has voted in favor of establishing and enforcing fines for rental policy violations. These fines are $25 per day (roughly $750 per month), and the Board will consider raising fines for owners who choose to rent in violation of Bylaws and House Rules for long periods of time. The foregoing fines are in effect as of the date of this letter, and will be strictly enforced to ensure fairness and consistency. As part of enforcing fines, the Board will take all steps legally available to collect fines, including, but not limited to, filing liens against units and suing to collect fines. Below is the pertinent information regarding owners’ obligations with respect to leasing out their units. Please read this information carefully.
New Plaza Bylaws 6.8(14) states in pertinent part as follows:
Unless otherwise specifically authorized by the Board of Directors, at no time shall more than twenty five percent (25%) of the Units in the Condominium be leased unless an exception in writing is granted by the Board of Directors for good cause shown. Once the maximum number of leased Units has been reached, no Unit Owner may sell their Unit to a Unit Owner unless the purchasing Unit Owner will occupy the Unit and the Unit will become subject to this provision upon the transfer of ownership of the Unit. Once the maximum number of Units have been leased, Unit owners shall be allowed to lease their Units as openings become available under the maximum on a first come first serve basis as logged on the Unit owners' Association waiting list.
New Plaza House Rules Sec. 2.5 states in pertinent part as follows:
Should NPCA reach its threshold for leases, the Board will consider requests on a case-bycase basis. Once the threshold for leases is achieved, the following guidelines will be used:
Sincerely,
The New Plaza Board of Directors
NEW PLAZA CONDOMINIUM ASSOCIATION BOARD OF DIRECTORS
Board@TheNewPlaza.com
Board@TheNewPlaza.com
May 7, 2012
Dear New Plaza Owners:
As you should all be aware, your ability to lease out your unit is subject to certain restrictions contained in the Association's Bylaws and House Rules. These restrictions impose limitations on the total number of units which may be rented in the building at any one time and set forth the process by which the Association implements the restrictions. Specifically, large numbers of rentals can adversely impact market values in two ways: 1) Condominiums with a large number of renters are less desirable to purchasers, and create a building environment that is more transient and less considerate of rules and the building generally; 2) If a building exceeds certain thresholds of non-owner-occupants, then some types of financing (such as FHA loans) won't be available to potential purchasers, making it harder to sell.
Please be advised that we have owners that are flouting the rules i.e. by refusing to stop leasing their units after their 36 month term has expired, which is extremely unfair to other owners that wish to rent out their units – including those with bona fide hardships. Because of this, the Board has voted in favor of establishing and enforcing fines for rental policy violations. These fines are $25 per day (roughly $750 per month), and the Board will consider raising fines for owners who choose to rent in violation of Bylaws and House Rules for long periods of time. The foregoing fines are in effect as of the date of this letter, and will be strictly enforced to ensure fairness and consistency. As part of enforcing fines, the Board will take all steps legally available to collect fines, including, but not limited to, filing liens against units and suing to collect fines. Below is the pertinent information regarding owners’ obligations with respect to leasing out their units. Please read this information carefully.
New Plaza Bylaws 6.8(14) states in pertinent part as follows:
Unless otherwise specifically authorized by the Board of Directors, at no time shall more than twenty five percent (25%) of the Units in the Condominium be leased unless an exception in writing is granted by the Board of Directors for good cause shown. Once the maximum number of leased Units has been reached, no Unit Owner may sell their Unit to a Unit Owner unless the purchasing Unit Owner will occupy the Unit and the Unit will become subject to this provision upon the transfer of ownership of the Unit. Once the maximum number of Units have been leased, Unit owners shall be allowed to lease their Units as openings become available under the maximum on a first come first serve basis as logged on the Unit owners' Association waiting list.
New Plaza House Rules Sec. 2.5 states in pertinent part as follows:
Should NPCA reach its threshold for leases, the Board will consider requests on a case-bycase basis. Once the threshold for leases is achieved, the following guidelines will be used:
- First-come, first-serve waitlist. Only applications submitted for approval 60-days prior to leasing date will be eligible for this waitlist.
- Any change of tenant by an existing owner who is renting will be considered a new application for renting.
- Exemptions will be made for government and military personnel (deployment or relocation).
- No unit may be rented for more than 36 out of 40 consecutive months. After the termination of this period is reached, the Unit Owner will be added to the waitlist without special consideration for future rental opportunities as they arise.
- When wait-listed owners come to the top of the list, they have seven (7) business days to notify the NPCA Board and Management Company of their intent to rent or decline. Those opting to rent shall have 90 days to present an executed NPCA Lease Agreement to the Board and Management Company. Those that decline to rent have the option of remaining on the wait list, but will be placed at the bottom of the list as of the date of notification, or request that their name be removed from the list.
- If a Unit Owner rents for 36 months in a 40 month period, they must terminate the tenancy and apply anew.
- If a Unit Owner's tenant moves out, the Unit Owner must apply anew.
- Applications to rent must be submitted 60 days in advance of the inception of the tenancy, once informed that it is your "turn" on the waiting list, you have 90 days to get the tenant in the unit. If you fail to do that, the Unit Owner must apply anew.
Sincerely,
The New Plaza Board of Directors
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