Hello
Windy Hill Forest
While
it is to be expected that some homes can cause a bit of friction in a
community, the fact that most of us in Windy Hill Forest are
conscientious contributors to neighborhood harmony is very much
appreciated and we thank you.
An
issue has come up that required immediate attention. Apparently a
tenant at one of the landlord properties has been making a home
available on a daily basis on AirBnB. This may have started with
opportunities afforded by the Super Bowl but the home continues to be
offered. The listing indicated that parking was free and the
premises could sleep 10 people. Recently a bachelor party was booked
there with a dozen or more young men. The young men were overheard
discussing their fake id cards and then caused considerable
disruption when they returned from downtown around 3am. Accordingly
the HOA Board has met, discussed the matter and has the following
policy regarding “Short-Term Rentals.” The Board reserves the
right to modify the policy from time to time.
APRIL
2, 2019 BOARD MINUTES RE:
WINDY
HILL FOREST HOA
SHORT-TERM
RENTAL POLICY
After
advance notice of the issue to all Board members, all 6 members of
the HOA Board met to address the issue of short-term rentals such as
AirBnB. After meaningful discussion, the following Short-Term Rental
Policy was agreed upon, without dissent.
It
is resolved that the HOA shall have a Short-Term Rental Policy, and
landlords are advised to establish their tenancies with written
leases having a term of 6 months or more in order to avoid
application of these terms. This new policy applies to Short-Term
Rentals, which means rentals which do not commence under a lease term
of 6 months or more (and for which the parties truly intend a tenancy
of at least 6 months). Under Article VI of the WHF covenants (which
are binding on each of our 89 homes), the Board may set insurance
requirements. Thus, every home shall have the following insurance
requirements with respect to Short-Term Rentals:
If
a home expects to engage in Short-Term Rentals, at least 20 days in
advance of starting such rentals (the “Submission Date”) the
homeowner is required email the HOA with a scan of 3 written items:
- A bona fide certificate of general liability insurance which specifically insures the property and its occupants with $2 million in coverage for all claims which may arise from short-term rental activity or from any other acts or omissions at the home; the certificate is to be provided by an insurer rated “A” or better by the A.M. Best rating service.
- An original affidavit from the individual owning the home (or for entity owners, the individual responsible for directing that entity); the affidavit shall state that each Short-Term Rental shall be for a minimum of 7 consecutive days, that the security deed lender for the home was given written notification of the Short-Term rental activity, that the lender has no objections to Short-Term Rental, and a true copy of the written notice to the lender is attached. (This requirement is set because lenders usually have an assignment of rights in insurance policies.)
- A check payable in good funds to maintain a Short-Term Rental Deposit with HOA in the amount of $5,000 as self-insurance for the home's Short-Term Rental activity.
An
HOA representative will reply and arrange a meeting to discuss the
details, assure guest compliance with the WHF 10 points policies,
and receive the original documents. In advance of the Submission
Date, a homeowner may apply to the HOA for a relaxing of these
requirements. Included among the factors that the HOA may consider
for such relaxing are: the homeowner having a history of good
communication with the HOA, the homeowner having a history of
compliance with HOA covenants and policy, the property being under
reputable and experienced property management, the homeowner having a
history of placing tenants who have complied with HOA covenants and
policy, and the presence of an individual with financial resources
and credit standing sufficient to provide a meaningful personal
guarantee for the activity. The HOA reserves the right to grant or
refuse relaxed standards on a case by case basis, according to a
reasonable assessment of the merits for each case.
The
Short-Term Rental deposit shall be held by the HOA and may be applied
at the HOA's discretion to compensate claims and violations –
including but not limited to claims of wrongful inconvenience, such
as disruption of parking, disruption of peace and quiet, and
trespass. When a home certifies that Short-Term Rental activity has
ceased, the deposit balance will be returned. Further, the Short-Term
Rental deposit shall be due and owing whether a home is complying
with this Policy or not. Thus, a home that holds a Short-Term Rental
in disregard of this procedure (i.e. a “ Rogue Rental”), shall
owe the deposit after the fact, and since the HOA cannot seek
insurance for the exposure retroactively, the home will the assessed
the $5,000 deposit amount and the entire amount shall be retained as
the HOA's liquidated damages; further, a $5,000 assessment shall be
owed for each instance of a Rogue Rental. The Short-Term Rental
deposit in no way limits the owner's exposure to neighbors and others
for damages arising from short-term rental activity or from any other
acts or omissions at the home.
The
HOA Covenants expressly prohibit use of the home to conduct a
business, but historically Landlord/Tenant operations were not
considered a business. This HOA is now clarifying that it considers
any leasing of a home for a term of less than 7 days to be the
conduct of a lodging business and such a business is prohibited under
the HOA Covenants.
The
undersigned states that this presentation of minutes is submitted in
good faith as the Short-Term Rental Policy established by the HOA
Board on April 2, 2019.
\signed 5
April 2019
Mary
Groves, HOA Secretary date
For
questions and comments, please email the HOA at
windyhillforest@gmail.com
