Covenant Concerns

Section 1-A(2) is the meat and bones of the ban on Short Term Rentals (STRs). It states that no STRs or transient tenants may be accommodated in a Residence and prohibits advertising on short-term rental websites. As mentioned above, it also limits all leases of the entire residence to an initial term of not less than 6 months. Many neighbors are in favor of a ban on STRs, and if this restriction had remained focused on these three points, it would have been decided by majority will. Unfortunately, however, the wording not only went beyond what was needed to ban STRs, it creates extreme confusion throughout the document regarding the term "Leasing". Read more

Section 1-A(3) defines "immediate family member," which is a term used in the definition of Leasing. It is there to ensure exchanges from the Owner to a family member won't be considered "Leasing." Unfortunately, rather than referring to the FHA (HUD) definition of "family" (as most documents do), the restrictions include a more limited definition of family. Per the restrictions, an "immediate family member" is limited to "mother, father, daughter, son, sister, brother, grandmother, grandfather, grandson, and granddaughter." So you can't give up occupancy to your boyfriend, girlfriend, domestic partner, foster child, aunt, uncle, niece, nephew or it might be deemed Leasing and Leasing for a term of less than 6 months is prohibited. Read More

Country Place is blessed to have a 91% owner-occupancy rate. Even better, of the 9% homes that are not owner-occupied, a significant number are owned by Country Place neighborhood residents. It is generally agreed that high owner-occupancy rates mean higher property values. Section 1-A(5) provides that upon acquiring an ownership interest, an Owner may not lease the residence until 6 months from the date of closing (or recording, whichever is earlier). This has the effect of discouraging investors who want to buy property for the sole purpose of leasing it. The provision is clear, unambiguous, enforceable, and has an identifiable purpose that is generally supported by the industry (i.e. higher owner-occupancy is better). Read more

Section 1-A(6) requires that all leases entered into contain certain language. Much of the provision seems quite reasonable.The language obligates the lessee to be given a copy of and abide by all governing documents and rules of the HOA. This creates a legal obligation for the lessee to follow HOA rules. It requires lessees to obtain a badge in order to use the amenities and creates an assignment of that use-right by the owner. In other words, either the lessee can use the amenities or the owner, but not both. Read more

Section 8 gives the Board the power to permit exceptions to the Leasing Restrictions. While it may seem like a good idea to allow some fluidity to a leasing ban, there are many arguments as to why allowing the board of directors to determine what facts and circumstances will qualify an owner for a rental hardship exception is not a smart move. The most obvious reason is that the board will be put in a position of being lobbied by friends and neighbors seeking a hardship exception. Along with the authority to make such a decision comes the pressure of being asked to do it. There are no standards set forth in Section 1-A(8), only examples. How will directors decide who will be entitled to an exception and who will not? Read more

Section 1-A(9) sets forth the Board's power to enforce the leasing provisions set forth in Section 1-A. For those who believe in maintaining our fundamental rights as Americans, this section contains perhaps the most egregious provision in the restrictions. Specifically it states,

“Each owner shall fully and truthfully respond to any and all requests by the Association for information regarding the occupancy of his or her Residence which in the judgment of the Board are reasonably necessary to monitor compliance with these leasing restrictions. “

In other words you MUST respond to the Board's inquiries about anyone they THINK is staying in your house. Read more

Section 2 adds the following language to the restrictions already in place:

"If the Architectural Committee does not respond to submitted building plans, specifications, plot plans and requests for waivers within thirty days after the same are submitted to it, the submitted building plans, specifications, plot plans and requests for waivers will be deemed denied."

Essentially, the Architectural Committee could simply ignore a homeowner's first request, forcing a homeowner to submit a second request. Arguably they can ignore that request as well. And the next. And the next. The restriction provides an appeal process for a "decision" by the Architectural Committee. It does not provide any recourse for a homeowner who has simply been ignored. Read more

Section 7 adds the following language to the restrictions already in place:

"No unsightly debris, junk, furniture, appliances or trash will be on the porch, front yard, side yard or back yard of any residence within view of the street or the yard of an adjacent residence.

All lawns and exterior planting areas/beds shall be maintained free of high weeds, high grass and debris. All shrubs and trees shall be trimmed to prevent blockage of any sidewalk, walkway or City street light." Read more

Section 8 adds the following language:

"All fences shall be maintained so as not to sway into adjacent property or to have rotted, missing or decayed wood or other materials. All fences on residences with swimming pools must have a gate that is securely closed and locked at all times in compliance with City Code."

Exactly how "decayed" is decayed enough for the HOA to force you to get a new fence? Do homeowners really have to replace every partially missing board - even those separating their yard from their neighbors? Read more

Section 13 adds the following language:

"...all landscaping must be weeded, well-trimmed and maintained and must be in harmony with the neighborhood."

What exactly is well-trimmed? This is another example of a restriction that could have been written to give the Board the power to enforce City of Carrollton standards, but instead they have created an ambiguous standard that is left entirely to their discretion. Read More

Section 16 has been updated to give owners a 20-day cure for property maintenance before the HOA can take the curative action and bill the property owner for the costs. The 20 days begins at the time of mailing the notice. There is no provision for a second notice, no provision for confirmation of notice, and no provision for appeal. So if the notice is lost in the mail or if the owner is traveling or sick and hasn't gone through the mail for a couple weeks, they could come home to an overhanging tree cut back or a replaced fence and a bill waiting for them. Read more