October 29, 2020

Why?

Why now?

What’s affected?

Who’s affected?

What’s required?

Recommendation

Q&A

The primary goal of any HOA: Preserve the Value of the Homeowner’s Investment.

As our CC&Rs put it, “…enhancing, maintaining and protecting the value and attractiveness …” of the properties within our HOA.

This is accomplished in a number of ways.Preserving the attractiveness of the neighborhood by requiring compliance with the Covenants.

Promoting long-term neighborhood stability and sense of community.

Promoting community standards and fostering participation in the administration and maintenance of the association.

The HOA is a legal entity.

Specifically, Colorado HOAs are non-profit corporations.

An HOA’s Board of Directors has a fiduciary responsibility to preserve and protect the interests of the corporation and, by association, the interests of the HOA’s members.

The fiduciary responsibility to act is why your Board is presenting this amendment for your consideration.

Unlimited growth in the number of rental properties within the HOA threatens the continued viability of the association.

The impacts are felt in several ways:Reduces owner-occupancy

Fails to promote long-term neighborhood stability and sense of community and community standards

Fails to promote compliance with Covenants

Diminishes community involvement in administration and maintenance of the association

The above factors affect the value of all properties (i.e., both investors and owner-occupants).

Unlimited growth in the number of rental properties may soon preclude the possibility of imposing any leasing restrictions.

Approval of any amendment to the CC&Rs requires the signature of 67% of Lot owners.

There are 57 Lots within Filings 6 & 7, which means that approval requires 39 signatures.

There are presently 15 rental properties.

Question: Will the attractiveness of the neighborhood be preserved when rentals make up over 1/3 of Lots?

Option #1: Do nothing.Easiest.

Allow continued unrestricted growth in number of rentals.

Accept eventual decline in appearance and collapse of effective management/administration of the association.

Option #2: Adopt a leasing Cap and force downsizing to Cap levels.

Hardest.

Requires creation of a reasonable “sunset” clause.

What is a reasonable timeframe for sunset?

Which lots should revert to sale or owner-occupancy first?

a.Lottery?

b.Newest purchase date?

c.Oldest purchase date?

d.Expiration or renewal of lease?

e.Upon sale or transfer only?

Option #3: Adopt a leasing Cap and provide a passive downsizing mechanism.

Most equitable.

Creates a Grandfathering mechanism.

Downsizing to Cap occurs passively, upon sale of Grandfathered Lots.

Provides most equitable protections for both current owner-occupants and owner-investors.

Caps maximum number of leased Lots at 10.

Prohibits leasing of Lots unless:Lot has been Grandfathered

Lot has been issued Leasing Permit (subject to Cap)

Lot has been issued Hardship Leasing Permit (limited circumstances)

Permit non-transferable between Lot or owners.

Prohibits subleasing and assignment of leases.

Prohibits short-term leasing, i.e. AirBnB, VRBO…

All homeowners, however:Grandfathered Lot owners may continue to rent without a permit (subject to requirements of the amendment)

Hardship situations considered on a case-by-case basis

Long-term leasing becomes an option for any homeowner if/when the number of rental properties falls below Cap (provision for a Waiting List)

The notarized signature of 67% of Lot owners.

Total of 39 Lot owners in favor of the amendment are required for approval.

Amendment must be recorded with the Mesa County Clerk and Recorders Office.

The Monument Village 2001 HOA Board of Directors strongly recommends approval of the proposed amendment to limit short and long-term leasing within the association as a criticalstep toward preserving the appearance and property value of our neighborhood.

Q&A

An Owner who (1) has leased his or her Lot for at least 90 consecutive days between January 1 –December 31, 2020, and (2) within 30 days of the Effective Date, provides the Board with a copy of the Owner’s current lease agreement(s) and/or any leases previously in effect between January 1 –December 31 2020.

A “hardship” includes, but is not limited to, the following situations: (1) an Owner must relocate his or her residence outside the Grand Junction, Colorado metropolitan area and cannot, within six months from the date that the Lot was placed on the market, sell the Lot except at a price below the current appraised market value, after having made reasonable efforts to do so; (2) an Owner dies and the Lot is being administered by his or her estate; or (3) an Owner takes a leave of absence or temporarily relocates outside the Grand Junction, Colorado metropolitan area and intends to return to reside in the Lot within one year.

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