Bylaws Amendment Vote: What You Need to Know

Major Expenditure Approval Amendment

1. Should the By-Laws be amended to require that the Association achieve a majority vote of the owners for certain expenditures costing greater than $150,000 and other changes as shown in Amendment 1?

What This Amendment Means for You:

Currently there are no limits to what the board can spend. This Amendment would set a cap of $150,000 above what has been allocated for reserves.
Achieve a majority vote of the owners for certain expenditures costing greater than $150,000.
Prevents future Boards of Directors from committing significant homeowner funds to non-essential projects without homeowner approval.

First-Year Rental Restriction Amendment

2a. Should the By-Laws be amended to prohibit renting within the first year of ownership and other changes as shown in Amendment 2.a?

What This Amendment Means for You:

Previously, a two-year rental restriction existed but was determined to be unenforceable.
Currently, there are no rental restrictions, allowing investors to purchase and rent units immediately.
This amendment would prohibit renting during the first year of ownership, helping encourage homeownership and discourage short-term investor purchases.

Rental Cap Limitation Amendment

2b. Should the By-Laws be amended to restrict the amount of rentals at the Association to 25% of the units at any given time and other changes as shown in Amendment 2.b?

What This Amendment Means for You:

Limits the number of rental units in the community to 25%.
Supports mortgage eligibility for future buyers, encouraging long-term residency and helping keep Kings Park accessible to non-cash purchasers.

What About Existing Rentals?

Current owners with rental units will be grandfathered in until the sale of their unit.
New owners wishing to rent will be placed on a waitlist and notified when they become eligible.

How Do Rentals Affect Property Values?

Reduced Buyer Pool (Financing Considerations)
Many lenders apply stricter guidelines in communities with a high percentage of rental units—often around or above 50%—because they are viewed as higher risk. This can limit financing options, reduce the number of qualified buyers, and potentially impact resale values.

Higher Wear and Operating Costs
Increased tenant turnover can lead to more frequent use—and sometimes heavier wear—of common areas and amenities. Over time, this may contribute to higher maintenance costs and potential increases in association fees.

Potential Impact on Property Values
A combination of limited financing options and higher operating demands can make units less competitive in the market, which may contribute to slower appreciation or downward pressure on property values in communities with a high percentage of rentals.