Community Forum

The Board of Directors of the community I manage is currently reviewing 2 hardship requests to override the current lease permit waiting list and allow 2 units in the building to be rented. However, there is a limit to protect value of the building (and its residents) that no more than 20% of the building may be rented out to non-residents. The B.O.D. for the HOA would like to know if they grant one or both of these cases- will lenders be less likely to favor units that are for sale or applying for refinancing. How should I advise my B.O.D.? We are a 70 unit luxury midrise condo building in a central and affluent part of the city, with only 6 units up for resale and no foreclosures to date.

Looks like no one had an answer for this one! I'm sure you've already done something on this, but my suggestion would be to ask a lender or two? Also, I'm not sure how they would know how many renters were in the association. And my gut feeling is they would not forwn upon it being slightly more than 20% if you are saying it would be.