Brown v. Montage at Mission Hills, Inc.
Facts: An owner purchases a parcel of property in a common interest development (CID) governed by a homeowners’ association (HOA). The owner rents out their property on a short-term basis less than 30 days to tenants, as authorized by the covenants, conditions and restrictions (CC&Rs). Later, the HOA amends the CC&Rs to restrict owners in the community from renting or leasing their properties for a period less than 30 days.
Claim: The property owner seeks to continue using their property as a short-term rental, claiming they are exempt from the restriction since they purchased their property prior to the HOA adopting the restrictions which may not be applied retroactively.
Counterclaim: The HOA claims the property owner may no longer rent their property for periods less than 30 days since the CC&Rs were modified and short-term rentals are now restricted.
Holding: A California appeals court holds the property owner may continue to rent their property for periods less than 30 days since they acquired the property before the HOA modified the CC&Rs and the restrictions are not retroactively applicable. [Brown v. Montage (2021) 68 CA5th 124]
Read Brown v. Montage at Mission Hills, Inc. in full here.
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