Can a homeowners association (HOA) prevent a landlord from renting their property short-term when they purchased it before the HOA passed the restriction?
Brown v. Montage at Mission Hills, Inc.
Facts: A homeowner purchases a parcel of land in a Common Interest Development (CID) governed by a Homeowners Association (HOA). The owner rents his property on a short-term basis of less than 30 days to tenants, as permitted by the covenants, conditions and restrictions (CC&R). Later, the HOA amends the CC&Rs to prevent community landlords from renting or leasing their properties for less than 30 days.
Claim: The landlord is seeking to continue using his property as a short-term rental, saying he is exempt from the restriction since he purchased his property before the HOA passed the restrictions which cannot be applied retroactively.
Counterclaim : The HOA says the landlord can no longer rent their property for periods of less than 30 days since the CC&Rs were changed and short-term rentals are now limited.
Holding: California Court of Appeals Says Landlord May Continue to Rent Property for Periods Less Than 30 Days Since Acquiring Property Before HOA Changes CC&R and Restrictions Not Retroactive . [Brown v. Montage (August 26, 2021) _CA6th_]
Read Brown v. Montage at Mission Hills, Inc. in full here.
California’s Short-Term Rental Bans, Reviewed