Reserve of Turpin Rental Amendment and Sex Offenders and Violent Felons Restriction Amendment

Reserve of Turpin Rental Amendment 

Currently, there is no limit to the number of rentals that can be in Reserve of Turpin.  There are some basic restrictions on the duration and types of rentals for the Attached Single-Family section of Reserve of Turpin, but there are no standards at all for rentals in the Detached Single-Family section.  Currently, the Association doesn’t even have to be told there is a rental in the Detached Single-Family section.

Pursuant to legal advice, the Board desires to at least cap rentals in both sections of Reserve of Turpin to a reasonable number, and possibly ban them with reasonable exceptions described below.  The purpose of a rental cap or ban is to protect the Owners and prevent would-be investors, and particularly corporate investors, from buying up numerous Lots in Reserve of Turpin and giving the appearance of a predominantly rental community.  If the Association does not institute a rental cap, the following things could occur, as explained by our legal counsel:
  • A small handful of investors could buy up several Lots for cash, and for well over appraised value.  This drives up property values of surrounding Lots, but be aware that it ousts competition from average (human) buyers, whose mortgage lender will not allow them to more than the appraised value.  
  • The more Lots owned by investors, the more votes they have.  Their voting power will dilute the voting power of the Owners who actually live in Reserve of Turpin and could lead to control of the Board.
  • Registered sex offenders can rent.
  • Felons and people who have not passed a background check can rent. 
  • Short term rentals, Airbnb, and vacation rentals may occur in the Detached Single-Family section.  There is a limit on short-term rentals in the Attached Single-Family section only.
In order to protect individual Owners over investors, exceptions and exemptions would be allowed that would apply only to human Owners and not investor or corporate Owners:
  • In the case of an undue hardship, which is determined by the Board based on certain standards, Owners could rent even if the cap has been reached.  Examples of undue hardships include but are not limited to:
    • the transfer or loss of a job;
    • being moved to a nursing home or medical facility for a period of time;
    • struggling to sell a Lot despite having it listed for appraised value;
    • the Lot being part of a probate matter where it is tied up and unable to be sold during probate proceedings.
  • Immediate family members could be exempted
Because the Detached Single-Family section and Attached Single-Family section are under different use restrictions in the Declaration, each section must pass its own separate rental amendment.  Legal counsel recommends that both sections adopt the same rental amendment to keep it consistent (i.e., both sections ban rentals or both sections cap rentals). However, if caps are implemented, each section can have a different cap that makes the best sense considering the total number of Lots in each section.
1.How likely are you to favor prohibiting all rentals? 

Under this option, all rentals will be prohibited, except Owners who are currently renting their Lots will be “grandfathered” so that they can offer their Lot for rent as long as they own the Lot. Once the Lot is sold, passed down, or given away, it cannot be rented. The undue hardship and family exceptions described above would apply to all Owners.
2.If a rental ban is not possible, would you support a cap on the number of allowed rentals at any one time?  Please select the cap you most support for your same home type (Attached or Detached)? 

Under this option, rentals are capped to no more than ____% of the total Lots being rented at any one time, except Owners who are currently renting their Lots will be “grandfathered” so that they can offer their Lot for rent as long as they own the Lot.  Once the Lot is sold, passed down, or given away, the new Owner will be subject to the rental cap. The undue hardship and family exceptions described above would apply to all Owners.

For reference there are 208 Attached Single-Family Homes and 117 Detached Single-Family Homes
3.Sex Offenders and Felons Convicted of a Violent Crime

Even if a rental amendment is passed, registered sex offenders and felons convicted of a violent crime could still buy a Lot and live in Reserve of Turpin. The Association can amend the Declaration to ban sex offenders and convicted felons from living in Reserve of Turpin.  Accordingly, would you support such an amendment?
4.Please indicate the section in which your home is located.