King City Civic Association Resolution: Use Restrictions-Rental/Custodial 2012-105
RENTAL RESTRICTIONS AND TEMPORARY CUSTODIAN EXCEPTION
(A re-formatting of adopted Resolution 07/15/08)
CC&Rs Article VII, Section 9.C;
The purpose of this Resolution is to provide King City Civic Association ("KCCA") owners with some guidance about how the Board of Directors interprets certain exceptions to the rental restrictions contained in the KCCA Declaration of Covenants, Conditions and Restrictions ("Declaration of CC&Rs").
Article VII, Section 9, of the KCCA Declaration of CC&Rs prohibits most rentals of units within KCCA. Subsection B of Section 9 allows the owner of a unit to appoint a "temporary custodian" of a KCCA unit for a period not to exceed one (1) year, subject to the prior written approval of the Board of Directors. The Board of Directors has recently received requests from several KCCA owners whose units are listed for sale, but which units, due to the downturn in the housing market, have not yet sold. Several of those owners have requested permission to rent their units under the temporary custodian exception.
Certain other owners have requested permission to rent their units under the Board's general authority to exempt an owner from the rental restriction under subsection C of Section 9, due to "special circumstances."
The KCCA Board of Directors has considered and discussed these requests. While having real sympathy for owners who have vacated their homes but are unable to achieve a sale of their property, the Directors have concluded that [it] is in the best interest of owners in general to continue to enforce the rental prohibitions as written, and not to construe broadly either the temporary custodian exception or the special circumstances exception. It is beyond the scope of this Resolution for the Board to try to imagine and document every circumstance that might properly fall within the temporary custodian or special circumstances exceptions to the rental prohibition, but the Board hereby resolves that the inability to achieve a sale of a KCCA home during a general softening of the real estate market is not within either such exception.
The Board's general approach to the temporary custodian exception envisions something other than a financial transaction such as a typical lease agreement. Instead, an owner wishing to avoid leaving his unit vacant and uncared for while on a temporary assignment overseas, for example, or perhaps while on an extended medical leave, seems to be what was intended for this exception. The Board would prefer to leave determination of what constitutes special circumstances to a case-by-case decision, but the Board does not think that special circumstances were intended to include generally applicable circumstances such as a softening of the real estate market that may affect all properties in an area or region.
IN WITNESS WHEREOF, the undersigned Chairman [sic] and Secretary of King City Civic Association hereby certify that the foregoing Resolution is adopted effective as of 7/15, [sic] 2008.
Chairman [sic] [President]Secretary
IT IS RESOLVED this ___ day of February 2012 by a majority vote of the Board of Directors that the foregoing Resolution dated July 15, 2008 be re-adopted effective upon distribution of the Association's March 2012 Newsletter
King City Civic Association
By Terry Shane, President By Maxine Van Dyke, Secretary
Adopted 7/15/08;
Reformatted and Restated 02/14/12