Rules And Regulations - Rental Properties

Pursuant to Article XII, Section 9, of the Declaration of Covenants, Conditions, and Restrictions ("CC&Rs") of Wilderness Hollow II Homeowners Association (the "Association") and R.C.W. 64.38.020, the following written rules and restrictions are adopted in order to further and foster the market values and mortgage rates within our development. These rules are intended to comply with all applicable laws and regulations; any conflict between the provisions herein shall be resolved in favor of the law. Further, these rules are intended to supplement the CC&R and/or Bylaw provisions which address the topics set forth below, not supplant or amend them, and in the event of an inconsistency or conflict between these Rules and the CC&Rs or Bylaws of the Association, the CC&Rs and/or Bylaw provisions shall supersede and apply. In the event that any provision of this instrument shall be determined to be invalid or unenforceable by the court of competent jurisdiction, such determination shall not affect the validity of any other provision herein.

Introduction - In the interest of protecting homeowners and families, and preserving property values and enhancing the quality of life within the community, the Association has developed a standard set of rules and procedures addressing the renting/leasing of homes within the community. The following outlines the rules, requirements and responsibilities of homeowners wishing to rent or lease property within the Association. Nothing in this policy is intended to act to discriminate against any protected class, to wrongfully deprive anyone of housing or to violate any provision of the Fair Housing Act (FHA).
Definitions
1. Association - Wilderness Hollow II Homeowners Association
2. Rental(s) - Any home/property within the Association that is rented, leased or occupied by residents other than the legal owner.
3. Landlord - The legal owner that is leasing or renting their property
4. Tenant --- The resident that is leasing or renting from the legal owner
Association's Limits on Rental Units - The Association sets a maximum rental cap of 15% (stated limit is based on the current standards used by Fannie Mae and FHA lenders), which are 5 of the 35 homes within the community. This limit is set to meet mortgage market restrictions and to help insure that the best mortgage rates are available and to achieve the protections expressed in Section A. above. The limit is also intended to prevent community deterioration due to too few owner occupants residing in the community.
1. Grandfather Clause
  1. If the number of rentals is higher than the stated limit at the time this regulation was adopted, then the rental limit will be set at the number of current rentals at that time.
  2. All current homeowners as of the date of this policy may convert their lot into a rental without regard to the stated rental cap. Current homeowners will still need to contact the association in writing prior to converting their home into a rental. Any future homeowners are fully subject to the rental cap.
  3. No new rentals are allowed unless the association is under the stated limit.
2. Conditions Applicable to the Grandfather Clause
  1. The current landlords at the time of this policy must submit their current mailing address and phone number, a copy of the current rental agreement and the management company mailing address and phone number (if applicable) to the association no later than 30 days.
  2. Once the association receives the above information, you will be sent a written confirmation of approval.
  3. All rentals must be in compliance with the terms and conditions set out in this Policy or Rule. Landlord owners have until the expiration date of their current written tenant lease agreement or one year from the date this policy becomes effective to revise their Rental Agreements (1)4) and the Tenant Standards (E) to comply with this rule.
  4. If the landlord doesn't comply with these regulations, they will forfeit their rights to the grandfather clause and can be assessed fines as stated in the Landlord Standards as if they were not approved.
Landlord Standards
1. Approval of Rental Property
  1. Prior to renting or leasing your property you must contact the association in writing and be approved for using your property as a rental.
  2. The said property must be current on all Association dues or the rental approval can and will be revoked.
  3. If the Association is below the set limits, the association will send a written confirmation of the approval within 30 days.
  4. If the Association is at or above the set limits, you may be put on a waiting list. No new rentals are allowed unless the Association is under the said limit.
2. Documents - All items listed below must be kept up to date with the Association within 15 days of any changes.
  1. Mailing address and phone number of the legal owner
  2. Mailing address and phone of rental management company (if applicable)
  3. Current list of tenants names and phone numbers
  4. Current signed copy of the rental agreement with addendum
  5. A signed copy of the acceptance of the CC&R's, Articles, Bylaws and Rules and Regulations by current tenants.
3. Fines for Non Compliance
  1. If at any time a property is a rental without prior written approval, then the association can assess violation fines in accordance to the Rules & Regulations
  2. If at any time a property is found to not comply with any of these rules and regulations, then the association can assess violation fines in accordance to the Rules & Regulations.
  3. If at any time any tenant or occupant of a Rental Unit violates or permits violations by his family members, guests and/or invitees of any provisions of the Association's governing documents, and such violations continue to occur or exist after reasonable notice to the tenant and Owner of such violations, the Board shall have the power and authority, on behalf of and at the expense of the Owner, to evict the tenant or occupant if the Owner fails to do so after written request for eviction is made by the Board. The Board shall have no liability to an Owner or tenant for any eviction or enforcement actions undertaken or made in good faith. The Association shall have a lien against the Owner's Unit for any and all costs incurred by it in connection with such eviction, including reasonable attorney fees, which may be collected and foreclosed by the Association in the same manner as Assessments are collected and foreclosed under Article VIII of the CC&Rs.
4. Communication between HOA and Landlord
  1. All tenants will fully comply with these Rules and Regulations adopted by the association
  2. Tenants must communicate to the HOA through their landlord.
  3. All tenant violations will be directed to the landlord in writing. The landlord must take action to resolve the violation with its tenant to avoid fines.
  4. The landlord is responsible for the conduct of the tenant and the tenants guests and will be assessed any fines if the tenant is not in compliance with the CC&Rs, Bylaws or Rules and Regulations.
  5. It is the responsibility of the landlord to pay all fines on time or a lien will be filed on the property.
  6. The landlord may assess these fines along to their tenant.
  7. The Association may demand termination of the lease with multiple violations that result in fines.
5. Rental Agreement Provisions
  1. For any rental or lease agreements initiated or renewed after the effective date of this rule, the landlord must attach to the primary rental or lease agreement the lease addendum, signed by both the member landlord and the renter tenant, in the form provided by the association as amended from time to time and incorporated herein by reference. The member landlord must provide signed copies of both the primary lease and the addendum to the Association. A copy of this form Addendum is attached to this Rule.
  2. Members may include in the primary lease any provisions they desire, provided such provisions do not contradict the lease addendum, the Declaration, the Bylaws and any other governing documents of the Association, or applicable law or public policy.
  3. All rental agreements should be month-to-month and no longer than one year.
  4. No vacation rentals.
  5. Single Family Agreements Only.
  6. The landlord should confirm that the tenant(s) have sufficient income to pay the monthly rent without hardship. It is recommended that the landlord use a screening company to obtain the information necessary to make this determination.
Tenant Standards
1. Tenant Screening Process
  1. Landlord/owner must screen all prospective tenants by submitting an application to the screening company of Landlord's choice.
  2. A sample screening application is available from the HOA management company and/or any current HOA board member.
  3. The Landlord should forward the application to the screening company for processing.
  4. The screening company will mail or fax the background check information to the landlord owner, who shall then provide a copy to the Association with Social Security numbers and similarly private information (e.g. bank account numbers) removed or blacked out so they are not legible by anyone.
  5. For a prospective tenant to be approved for a rental within the Association, they must meet at least the standards, or fall within one of the exceptions, in Resident Acceptance (3). The landlord can set these standards higher.
2. Credit, Criminal and Background Check — The report should include the following items listed below.
  1. Nationwide Credit Report
  2. Name & Social Security Verification
  3. Bank Account Verification
  4. Court Records Search
  5. Current Address Verification
  6. Prior Address Verification
  7. Undisclosed Address Verification
  8. Employment Verification
  9. State Sex Offenders Files
  10. Felony Conviction Records
3. Resident Acceptance
  1. Any of the following items, absent extenuating circumstances, shall be considered terminal and sufficient to decline application.
    1. Any Open Bankruptcy
    2. Any unpaid apartment collections, negative rental or incomplete reference
    3. Any eviction or Unlawful Detainment action and/or any current 3 day or 10 day notices
    4. Any conviction for the selling of drugs or possession of drugs with intent to sell, or any convictions for contributing to the delinquency of a minor
    5. Any registered or unregistered sex offender
    6. Any history of disruptive, malicious, violent behavior and/or more than 2 convictions of Domestic Violence
    7. Any false or misleading information provided by the applicant on the written application or omission of a material fact.
    8. A total of $400 or more unpaid collections in the last 7 years.
    9. Any criminal conviction which involves theft, burglary, robbery, serious offense, or a crime of violence as defined in RCVS 9.41.010
  2. The following shall be considered negative items. If three or more negative items are found in a screening report or determined through other means or sources, with no extenuating circumstances (including but not limited to: temporary job loss, medical reasons, family emergency, etc.) the application will be denied by the Association.
    1. Any credit account that has been rated R5 (120+ days late) in the last seven years.
    2. Any two credit account change offs discharged Chapter 13 Bankruptcy, vehicle repossession, lien or any unpaid civil judgment in the last seven years.
    3. Any rental reference that includes more than 2 late payments or shows more than 1 NSF check
    4. Any instance of unauthorized pets or persons occupying a unit rented to the applicant.
    5. Any instance of improper or lack of Intent to Vacate notice and/or broken by the applicant.
    6. Any employment situation, that is temporary in nature.
    7. The landlord owner is unable to confirm that the tenant(s) have sufficient income or other legal sources to pay the monthly rent without hardship.

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