N.Y. Court Says HOA “Rules” Limiting Rentals Were Unenforceable

Appellate Division of the Supreme Court of New York decision (March 9, 2017).

This case involved a dispute between a homeowners’ association (“Association”) and homeowners (“Homeowners”) over the enforceability of rules Limiting Rentals adopted by Association concerning the renting of condominium units by Homeowners.

In March of 2014, Association’s board of directors informed Homeowners that they had approved “Rules and Regulations” that included the following limitations and restrictions concerning the rental or leasing of units by Homeowners:

·         A requirement that no unit could be rented for a period of less than two weeks.

·         A prohibition that barred renters from access to a common area facility.

·         A limitation on the rights of renters relative to guests and pets.

·         A requirement for the payment of rental and administrative fees to Association.

·         Owners who failed to comply with the rules were subject to fines and penalties.