The Board of Directors of Royal Run Subdivision Homeowners Association, Inc. has proposed an amendment to the neighborhood Covenants and Declarations that would introduce some restrictions on the ability to rent community homes to tenants that do not own the home . If you are ready to vote now, you may click here.
Please find below the entire proposed amendment in final form that would be added if accepted. Below the document please find a FAQ detailing common questions that have been raised.
FAQ
Q1: Why is this amendment proposed?
A: Owner-occupied properties historically are maintained better than rentals. The Board feels that an increased number of rentals may result in decreased property values.
Q2: How does the amendment approval process work?
A: The amendment process is detailed in the RR Covenants. The Board first conducted a “Town Hall” meeting (which was held on January 26th, 2022) to answer questions and accept comments and suggestions for changes. Changes were made (15% –> 10% cap), (10 properties max –> 5 properties), and (exemption from cap for existing homeowners). The Board is now submitting this final version of the amendment to the membership for approval, with opening date being Nov 1st, 2022. Fifty-one percent (51%) of the voting members (357) must vote to approve. The entirety of the proposed amendment will be sent to each resident along with a paper ballot which may be returned. Electronic voting with e-signature is also available on this very page.
Q3: Can you give a quick summary of the major restrictions being introduced?
A: Here are the main concepts of the document:
*A cap on total number of permitted rentals (70 max out of the 700 RR homes or 10%)
*Rental tenants must be registered with the board/mgmt company including providing renter contact info
*Leases must be for one year or longer; no short term leases
*A home must be owned for two years by a given owner before it can become valid for rental
*Maximum number of lots owned by single owner (5)
*Hardship exceptions for homeowners who need to rent outside the above conditions because of life circumstances
*Grandfathering of existing rental situations provided that the homeowner registers within 60 days
*Grandfathering of EXISTING HOMEOWNERS in their ability to rent their already-owned property with exemption to the % cap
Q4: When will the rental restrictions become effective?
A: If the amendment is approved, it will then be recorded by the Boone County Clerk once the required number of votes are met. The new rental restrictions become effective on that date of recording.
Q5: How many properties are currently rented in Royal Run?
A: The HOA believes there are currently just over 120 rentals based on the number of dues statements that are sent to “off-site” addresses. Therefore, with the proposed cap already exceeded – no new purchasers will be able to rent out homes until the % drops back below 10 %. Again, existing homeowners as of the passing of the amendment would be exempted from this.
Q6: What happens to properties that are currently rented?
A: Existing rentals can be “grandfathered” provided that the current owners register their current tenants within 60 days of the restrictions becoming effective. This grandfathering applies only for current owner. If the current owner sells a rental property, the new owner is subject to the 2 year waiting period and potential waiting list if the total neighborhood rental count is over 105.
Q7: My house is owned by a trust (or an estate). Am I “renting” it to myself and affected by these restrictions?
A: No, as long as the occupant of the house is a trustee, fiduciary, or beneficiary of the trust or estate.
Q8: We downsized and moved out, but still own the house. Our son and his family live there now. Can they still live there after the rental restrictions take effect?
A: Yes. Relatives of the owner are allowed to live in the house without regard to whether rent is paid.
Q9: I wanted the option of renting my house after the kids move out and I downsize. Will this prevent me from doing that?
A: No, if you owned the house prior to the date of this amendment passing, you are exempt from the % cap that would restrict you from renting the house. You must still follow the other rental guidelines being introduced (registration of tenant, 2 year ownership requirement, cap on properties owned, etc)
Q10: I have to take a temporary work assignment out of state. I could be gone for a year or more. Can I rent my house while I am away even if I have not lived in it for two years?
A: The amendment allows the Board to grant exceptions to the rental ban for “hardships” – on a case-by-case basis depending on the need and the length of time the house will be rented.
Q11: I may have to move into a medical care facility due to age or illness. My house will be vacant for an extended period. Can I rent it out while I figure out if I want to sell it?
A: Your situation may qualify for a “hardship” exception. See the answer to the previous question.
Q12: I’m in favor of this amendment and I’d like to help solicit ballots from the membership. How can I help?
A: Contact any Board member or use the contact form on this page. Based on our experience from the last amendment, volunteers will be needed to go door-to-door to get a sufficient number of ballots returned.
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