Over the past couple of years the board has sought a resolution to a few individuals who have been violating the covenants by using their cabins as a transient rental business. The board has a duty to strictly enforce the covenants to protect our property owner’s interests, including their quality of life and property values. We intend to fulfill our duty and obligation to our members. We have consulted with the Law firm Hopkins Roden, which concurs that our covenants do prohibit transient rentals and the association is bound to prohibit such activity.
For your information, the Master Declaration of the Stonegate Subdivision, of record in Fremont County as Instrument No. 44763, provides in Article III, Section 3.01.1 as follows:
All lots are restricted to residential use and structures shall only be occupied and used for residential purposes or for such incidental purposes which may be reasonably or related to such residential usage. The property shall not be used for the purpose of carrying on or maintaining any business, commercial or industrial activities. Because there has been some uncertainty expressed as to the meaning of commercial activities, the Stonegate Association Board has promulgated a Rule in accordance with its powers designated in the Declaration, which clarifies Section 3.01.1 by declaring, “Rental of homes is considered a business activity and prohibited by Section 3.01.”
To further clarify the Association’s policy, the Board adopted an additional Rule as to transient rentals, as follows:
Short-Term Transient Rental Use Policy:
During the past year, the Board has become aware of increasing use of homes within the Stonegate area for short-term transient rental use. Moreover, there has been an extraordinarily high degree of interest and communication to the Board from homeowners regarding this development and large scale opposition to rental use. There is great concern that the Board enforce the covenant restriction and take action to stop such activity. Section 3.01.1 of the Master Declaration of Covenants, Conditions and Restrictions at Stonegate, a Subdivision of Fremont County, Idaho (“Covenants”), provides:
All lots are restricted to residential use, and structures shall only be occupied and used for residential purposes or for such incidental purposes which may be reasonably or related to such residential usage. The property shall not be used for the purpose of carrying on or maintaining any business, commercial or industrial activities.
Fremont County Ordinance No. 2010-01 provides that “the use of a residential dwelling or home or any part thereof for the purpose of short-term or transient rental is a commercial use.” In fact, in order to engage in short-term transient rental, a permit is required from Fremont County. Based on the clear wording of the covenants and application of the Fremont County Ordinance, it is clear that short-term or transient rental use is a violation of the Covenants. Consequently, no short-term transient rental is permitted in the Stonegate subdivision and we encourage homeowners to cease this activity to prevent further action from the Board.
The Board of Directors of the Stonegate Property Owners Association, Inc. at its meeting held on the 5th day of March, 2016, adopted by unanimous affirmative vote, in accordance with the provisions of Section 6.04B. of the Association’s Master Declaration of Covenants, Conditions and Restrictions, the following Rule:
Those persons found to be renting their homes in violation of the provisions of Section 3.01 of the Master Declaration may be fined up to $300 per day for any such day a home is rented, as well as $100 per day for any day that a home, subject to these Rules, is advertised for rent. Thank you for your attention and cooperation. Should there be any questions with respect to the foregoing or the Stonegate policy, you are welcome to contact us at any time.
|