RENTAL RESTRICTION POLICY

(Adopted pursuant to Article XIX of the Master Deed and Article 22.0 of the Rules & Regulations)

1. Purpose and Authority

This Rental Restriction Policy is adopted by the Board of Directors of Northlake Condominiums Homeowners Association, LLC (“Association”) to implement and enforce the leasing restrictions approved by the ownership in the Amendment to the Master Deed (Article XIX) and further supported by Article 22.0 of the Rules & Regulations.

The purpose of this policy is to:

  1. Maintain a predominantly owner-occupied community;

  2. Protect property values;

  3. Ensure fair and consistent enforcement of the 15% rental cap and all leasing provisions; and

  4. Establish clear procedures for owners seeking or maintaining rental status.

2. Grandfathering of Existing Rental Units

  1. All Units legally leased as of the effective date of the Amendment are grandfathered and may continue to be leased until one of the following occurs:

    • The Unit is sold or subject to a Complete Transfer of Ownership;

    • The current Owner moves into the Unit as a resident; or

    • The existing lease expires or is terminated, whichever occurs first.

  2. Once any of the above events occur, the Unit loses rental eligibility permanently unless the Owner meets all new requirements, including the residency waiting period and position on the rental waiting list.

  3. A grandfathered Unit may not be renewed on a non-conforming lease if doing so violates the governing documents.

3. Maximum Rental Cap (15%)

  1. No more than 15% of Units within Northlake Condominiums may be leased at any given time.

  2. The Board shall maintain the official list of authorized rental Units.

  3. A Unit may not be leased unless the Owner has:

    • Submitted a written request;

    • Received written Board approval; and

    • Entered into a compliant lease within 60 days of approval.

4. Rental Waiting List

  1. When the Association reaches the 15% rental cap, no additional Units may be rented.

  2. Owners wishing to lease their Unit must submit a request to be placed on the Rental Waiting List.

  3. Owners may NOT be placed on the waiting list until they have fulfilled the 24-month residency requirement outlined in the Master Deed (Section 19.2(4)).

  4. Owners are placed on the waiting list in the order their written request is received, after residency is verified.

  5. When the rental percentage drops below 15%, the Board will contact Owners on the waiting list in priority order.

  6. Once approved, Owners have 60 days to execute a compliant lease or their approval is revoked, and the next Owner on the list is contacted.

5. Twenty-Four Month Residency Requirement

  1. For any Unit that experiences a Complete Transfer of Ownership after the effective date of the Amendment, the new Owner:

    • Must occupy the Unit as their primary residence for 24 consecutive months before being eligible to lease; and

    • May not be added to the rental waiting list until this residency requirement is completed.

  2. If a Unit is purchased subject to an existing lease, the 24-month clock begins at termination or expiration of that lease, whichever occurs first.

  3. This provision does not apply to first mortgagees acquiring title through foreclosure or deed in lieu.

6. Leasing Requirements (For All Approved Rental Units)

6.1 Lease Agreement Requirements

All leases must:

  1. Be in writing;

  2. Be for a minimum term of 12 consecutive months;

  3. Lease the entire Unit only (no partial leases or subleasing);

  4. Include the mandatory language requiring tenants to comply with the Master Deed, Bylaws, Rules & Regulations, and all governing documents;

  5. State that violations of the governing documents constitute a default under the lease;

  6. Be submitted to the HOA each time a new lease is executed.

Short-term rentals (Airbnb, VRBO, transient rentals, etc.) are strictly prohibited.

6.2 Tenant Occupancy Limits

Per Article XIX:

  • Unrelated occupants: Maximum is the number of bedrooms, but never more than three.

  • Related occupants: Up to two persons per bedroom, not to exceed six total.

6.3 No-Pets Policy for Tenants

  • Tenants may not have pets.

  • Owner is fined $150 per day for violations.

  • Fair Housing-required accommodations must be supported by legal documentation.

6.4 Required Documentation Before Move-In

Tenants must:

  1. Complete the Tenant Information Packet;

  2. Sign acknowledgment of the Rules & Regulations;

  3. Obtain parking decals before parking onsite;

  4. Comply with pool pass procedures.

7. Owner Responsibilities

  1. Owners are responsible for all violations, conduct, damages, and fines involving their tenants, guests, or occupants.

  2. Owners must pay the annual $550 Landlord Administrative Fee for each non-Owner-occupied Unit.

  3. Owners must ensure tenant compliance and must participate in enforcement actions when required.

8. Hardship Leasing Requests

The Board may, in its sole discretion, grant temporary leasing waivers for documented:

  • Military deployment;

  • Job transfer;

  • Serious illness or disability;

  • Other circumstances that would create undue hardship or inequitable results.

Hardship approvals:

  • Do not set precedent;

  • May be time-limited;

  • Do not guarantee future approval.

9. Enforcement

  1. The Board may review lease agreements for compliance.

  2. Violations may result in:

    • Fines;

    • Suspension of leasing privileges;

    • Legal action;

    • Liens for unpaid fines or fees;

    • Demand for eviction of non-compliant tenants.

  3. Failure to enforce provisions at any time does not waive the Association’s right to enforce at a later time.

10. Loss of Rental Status

A Unit permanently loses rental eligibility if:

  • Ownership changes;

  • The Owner moves into the Unit;

  • The 24-month residency clause has not been fulfilled;

  • Approval to lease expires or is revoked;

  • The Unit is no longer grandfathered.

Once lost, rental privileges cannot be restored except through the waiting list process and full compliance with residency requirements.

11. Exceptions

These restrictions do not apply to Units owned by the Association.