Your Board of Directors is seeking your vote to make a couple of changes to your CC&R's. It is the Board's belief that these changes will help preserve your property values. One of these changes removes a previously approved restriction of the renting of property within the University Ridge PUD, and the other seeks changes to allow the acquisition of property abutting the eastern boundary of the PUD.
Acquiring the Boot
What is the boot?
The boot is a 13 acre parcel of land wrapping around the East side of the park and behind some of the lots on University Park Ct., University Park Loop South, University Ridge Dr., and Morrill Hall Ct. It is a piece of land that was left over during development of University Ridge.
Why is the boot available?
It was owned by the developer, Ridgeland Land Co., which went out of business a few years ago. Officers of Ridgeland Land have offered to let us have it, but first we need to acquire it and change our CC&Rs to allow this.
What would be the cost to our Association?
The land is being offered to us for free, but we will need to pay back taxes and annual property taxes in the future. The annual tax last year was only $6.44 and the current balance is $31.34 for back taxes and interest. There will also be some fees for preparing and filing the paperwork. Currently the property is not being maintained, but if our HOA decides to maintain or improve the property in the future, there would be additional cost. We have no plans to maintain or improve the property, except for periodically removing trash.
Would acquiring the boot increase our legal liability?
We already have an insurance policy covering liability for our common areas. Increasing the acreage of common area could result in a small increase in our insurance premiums.
Why should we acquire the boot
If the property tax delinquency continues, the land will be transferred to the county and it will be sold at a tax sale. A company could buy the land and develop it, if it gains vehicle access (an easement) across the NV Energy land to the East. We want to control this land and keep it open and clean for the benefit of all HOA members.
Removing the Rental Restriction
Why do we have a rental restriction in the CC&Rs?
When the CC&Rs were being revised in 2007, some members of the board thought that limiting the number of rentals would support or improve property values. The CC&Rs were amended in February 2008, but the 15% cap only applies to those who bought their property after this date. We actively enforce our Rules and Regulations dealing with landscaping, maintenance, parking, and waste management, so the board does not believe that there is any reason to restrict rentals now.
What are the problems with this rental restriction?
Those who purchased before February 2008 are free to rent their homes, but the 15% cap is based on all 460 properties in our HOA. So the limit of about 69 rentals only applies to restrict rentals for the more recent homeowners. We do not know and cannot precisely find out the number of rentals, but currently there are more than 100 homes that have owners with different mailing addresses and street address. Here are some of the problems perceived by the board:
1. The rental restriction has not been enforced. We would need to begin an investigation to determine how many rentals there are, whether the property was purchased after 2008, and if there are more than 15%, try to shut some down. We have an obligation to enforce the CC&Rs, and this rule is very difficult enforce.
2. Recent buyers would need to cease renting. The current limit of 69 rentals would be much more than 15% of the fewer, more recent homeowners. We believe that there are currently more than 69 rentals, so some recent buyers would need to stop renting immediately.
3. The rental restriction limits the property rights of owners. Recent buyers cannot rent their property if we are over the 15% and even if you were an owner before 2008 and want to sell, your purchaser would be prohibited from renting if we are over 15%.
4. We believe the rental restriction actually decreases property values. The value of your home is determined by what people will pay, and if a large group of buyers is excluded, your property value and those of your neighbors go down. One reason our area is valuable is that investors are assured of renting because we are close to UNR.
If we remove the rental restriction, what would change?
We believe that nothing would change. In fact, if the rental restriction is not removed, then we would need to immediately enforce the 15% restriction and some owners would need to stop renting. The rental restriction has not been enforced, so there is no reason to believe that the number of rentals would increase. Many rental houses were bought by investors during the housing bubble, so the trend will likely be that the number of rentals will decrease in coming years.
VOTE YES on Changing the CC&R's
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