3.7 Liability for Damages and Misconduct. Notwithstanding any other provision of this Declaration, each Owner shall be responsible for any expenses resulting from damages done to a Unit, the Common Elements or the Limited Common Elements by that Owner or a Tenant occupying the Owner's Unit, or the family, servants, employees, agents, visitors, licensees, or household pet of that Owner or Tenant, or as a result of the failure of or failure to maintain, repair or replace any fixture, equipment, appliance or appurtenance which the Owner is responsible to maintain under the terms of the Declaration, or from any misconduct by that Owner or a Tenant occupying the Owner's Unit, or the family, servants, employees, agents, visitors, licensees, or household pet of that Owner or Tenant. The charges for repair or replacement of any damage in excess of insurance proceeds available to the Association under policies of insurance issued to the Association and the expenses resulting from any such misconduct caused thereby shall be specially assessed to the Unit, shall be a lien upon the Unit and upon any appurtenant Common Elements, and shall be collectable as are other Assessments.

3.12 Non-Discrimination. Neither the Association nor any Unit Owner shall discriminate against any person with regard to the sale, rental or occupancy of a Unit in the Condominium on the basis of race, color, creed, national origin, age, sex, sexual orientation, religion, familial status, marital status, parental status, political ideology, handicap, possession or use of a Section 8 rent certificate, or any other legally protected classification.

3.13.1 Rental Defined and Regulated. The Rental of a Unit shall be governed by the provisions of the Declaration, including, without limitation, this Article. As used in the Declaration the terms "to rent", "renting" or "Rental" shall refer to and include the Leasing or Renting of a Unit by its Owner and to the occupancy of a Unit solely by a person or persons other than its Owner, whether or not rent is paid; provided that for the purpose of tenant screening as provided in Section 3.15, the terms "to rent", "renting" or "Rental" shall not refer to the occupancy of a Unit by a Related Party. The rights of the Association and the obligations applicable to an Owner under Sections 3.13 and 3.15 shall be applicable to any Tenant who subleases a Unit or enters into an assignment of a Lease for a Unit, and the obligations of a Tenant shall likewise be applicable to the sub-Tenant or assignee of a Tenant in such a situation. Notwithstanding anything herein to the contrary, Section 3.13 shall not be applicable to the rental of a Unit acquired by the Association following a foreclosure of the Association's lien for Assessments or to the rental of a Unit by a receiver appointed on the motion of the Association in connection with a lien foreclosure action filed by the Association.

 

3.13.2 Minimum Lease Term Required. With the exception of a Mortgagee in possession of a Unit following a Mortgage Foreclosure or a receiver in possession of a Unit during the pendency of a Foreclosure by a Mortgagee or the Association, no person shall be permitted to Rent or Lease less than the entire Unit or to Rent or otherwise permit a Unit to be used for hotel or transient pm-poses, which shall be defined as Rental, occupancy or use by a Tenant or other non-Owner Occupant for an initial occupancy period of less than six (6) months. No Owner or Tenant who does not occupy a Unit as a primary residence shall cause or allow the overnight accommodation of employees or business invitees in a Unit on a temporary or transient basis. Except as provided in this Paragraph, every Lease shall be for a fixed initial term of not less than six (6) months, but may be renewed on a month to month basis thereafter.

 

3.13.3 Minimum Ownership Period Required Before Rental. It is the intent of the Owners that the Units shall hereafter be acquired for occupancy by their Owners and occupied consistent therewith. In order to discourage the acquisition of Units in the Condominium for investment or rental purposes, no Owner shall be permitted to rent or lease his or her Unit during the one (1) year period after he or she shall have acquired title thereto except as provided in Paragraph 3.13.12. If a person or persons acquires a Unit through inheritance, that person or persons shall be deemed to have owned and occupied that Unit during the period which their decedent owned and occupied the Unit.

 

3.13.4 Lease Requirements. No Rental of a Unit shall be valid or enforceable unless it shall be by means of a written instrument or agreement between the Owner(s) and the Tenant(s) (referred to in the Declaration as a "Lease"). No Lease entered into after the date of recording of this Amendment shall be valid unless it bears the written approval by the Association granted prior to the occupancy of the Tenant. The occupancy of a Unit in the Condominium and every Lease shall be subject to the Governing Documents of the Association. By entering into occupancy of a Unit, a Tenant agrees to be bound by the Governing Documents. The Association shall have and may exercise the same rights of enforcement and remedies for breach of the Governing Documents against a Tenant as it has against an Owner, and in addition shall have the rights and remedies provided for in Section 9.5 of the Declaration. Each Lease shall contain language acknowledging the Association's rights and the Tenant's obligations under the Governing Documents.

 

3.13.5 Lease Approval. Except as provided in Paragraph 3.13.8, prior to the Rental of a Unit in the Condominium to a Tenant, and prior to the renewal of any previously approved Lease, a Unit Owner shall submit to the Association a valid and binding Lease, executed by both the Owner and the proposed Tenant, and contingent only on the approval of the Association, together with a request for the written consent of the Association. The Association shall, as expeditiously as practical but in any event within seven (7) days of receipt of such request, grant its consent to the Owner if:

 

3.13.5.1 the Owner has complied with Sections 3.13 and 3.15 of the Declaration;

 

3.13.5.2 in the case of a renewal, the Tenant is in strict compliance with all provisions of the Governing Documents, and has not been found to be in violation of the Governing Documents following notice and. opportunity to be heard more than once during the immediately preceding year;

 

3.13.5.3 the Lease contains a Lease Addendum in the form approved by the Association or is otherwise in compliance with the requirements of the Declaration;

 

3.13.5.4 the Rental would not cause the aggregate number of all non-Owner occupied Units to exceed the Rental Ceiling specified in Paragraph 3.13.6, below; provided, however, that:

 

3.13.5.4.1 the Association shall not withhold consent for an Owner and a Tenant to renew a Pre-Existing Lease meeting the requirements of Paragraph 3.13.8 merely because the number of non-Owner occupied Units is equal to or greater than the Rental Ceiling; provided, however, that the assignment or subletting of a Unit by a Tenant shall terminate the right to renew a Pre-Existing Lease under this Sub-Paragraph;

 

3.13.5.4.2 the Association shall not withhold consent for an Owner and a Tenant to renew a Lease which has previously been approved in the manner provided in this Paragraph 3.13.5 merely because the number of non-Owner occupied Units is equal to or greater than the Rental Ceiling; provided, however, that the assignment or subletting of a Unit by a Tenant shall terminate the right to renew a previously approved Lease under this Sub-Paragraph;

 

3.13.5.4.3 the Association shall not withhold consent for a Mortgagee in possession of a Unit following a default in its Mortgage or a Mortgage Foreclosure, or from a successor in interest to such Mortgagee, where such Mortgagee or a purchaser at a foreclosure sale first obtains possession subsequent to the date of recording of this Amendment, to rent a Unit merely because the Rental would cause the number of non-Owner occupied Units to exceed the Rental Ceiling;

 

3.13.5.4.4 the Association may grant a hardship exception as provided in Sub-Paragraph 3.13,12 notwithstanding the fact that it would temporarily cause the number of non-Owner occupied Units to exceed the Rental Ceiling until the next Rental vacancy occurs.

 

3.13.6 Rental Ceiling Set. Except as provided in Paragraph 3.13.12, the maximum number of non-Owner occupied Units in the Condominium at any one time shall not exceed Nine (9) (referred to in the Declaration as the "Rental Ceiling").

3.13.7 Effect of Rental Ceiling. If an Owner wishes to rent a Unit but is prohibited from doing so because of the Rental Ceiling, the Association shall place the Owner's name on the Rental Waiting List provided for in Paragraph 3.13.11.

 

3.13.8 Pre-existing Leases. Within thirty (30) days from the date of notification to all Owners that this Amendment to the Declaration has been adopted by the necessary percentage of Owners, each Owner who has rented a Unit to a Tenant who was in occupancy prior to the date on which this Declaration Amendment was approved by the Owners shall file a copy of the Lease for that Unit with the Association. A Lease in effect on that date and submitted as required in this Paragraph shall be referred to as a "Pre-existing Lease." Any Tenant occupying a Unit pursuant to a Pre-existing Lease shall be permitted to renew his or her Lease thereafter, provided that a copy of the Pre-existing Lease is filed with the Association within the time period provided for in this Paragraph and any subsequent renewals are submitted to the Association for Lease Approval pursuant to Paragraph 3.13.5 prior to the expiration of the Lease term then in effect. The assignment or subletting of a Unit by a Tenant or the sale of a Unit by its Owner shall terminate the right to renew a Pre-existing Lease under this Paragraph 3.13.8.

 

3.13.9 Limitations on Consent. No Lease Approval shall be granted more than sixty (60) days prior to the beginning of the Lease term for which consent is sought. Any Lease Approval granted by the Association shall automatically expire and terminate unless the Unit shall be occupied by the Tenant within thirty (30) days of the beginning of the term of the approved Lease.

 

3.13.10 Notice of Rental Termination. Each Owner who has rented a Unit shall promptly give written notice (referred to in the Declaration as "Notice of Rental Termination") to the Association if a Lease for the Unit has expired or is scheduled to expire within thirty (30) days and has not been renewed, or the Tenants have or are scheduled within thirty (30) days to vacate the Unit, or the Lease has otherwise terminated or is scheduled to terminate within (30) days (referred to in the Declaration as a "Rental Termination"). An Owner shall give written Notice of Rental Termination to the Association within five (5) days of the time that the Owner learns of the Rental Termination. That Owner may at the time he or she files a of Notice of Rental Termination, but no more than sixty (60) days prior to the scheduled Rental Termination, have his or her name placed on the Rental Waiting List.

 

3.13.11 Rental Waiting List. Except as provided in Sub-Paragraphs 3.13.5.4.1, 3.13.5.4.2, 3.13.5.4.3 and 3.13.5.4.4, if a Rental Waiting List exists, no Lease or Lease renewal shall be approved for a Rental Unit until all Owners who are on the Rental Waiting List have been given the opportunity to apply for Lease Approval. Within ten (10) days of receipt of a Notice of Rental Termination, but not more than sixty (60) days prior to a scheduled Rental Termination, the Association shall notify the Owner in the top position on the Rental Waiting List of the opportunity to apply for Lease Approval. That opportunity to apply for Lease Approval shall be available to that Owner for a period of sixty (60) days from the date of that notice. If no request for Lease Approval is submitted during that period, that Owner's name shall be placed at the bottom of the Rental Waiting List, and the opportunity to apply for Lease Approval shall be offered to the next highest person on the Rental Waiting List.

 

3.13.12 Hardship Exception. Where, on written application from a resident Owner, the Board determines that a hardship exists whereby that Owner would suffer serious harm by virtue of the limitation on renting contained in Paragraph 3.13.3 or Sub-Paragraph 3.13.5.4, and where the Board further determines that a variance from the policies contained therein is fairly in keeping with the purpose of this Section to limit investor ownership of Units and would not detrimentally affect the other Owners or the approval of the Condominium for secondary mortgage market financing, lender approval or VA or FHA approval, the Board may, hi its discretion, grant an owner a waiver of the Rental Ceiling for a temporary period not to exceed six (6) months. In the discretion of the Board this hardship exception may be extended on written application of an Owner for one (1) additional period not to exceed six (6) months for good cause shown. A Uuit rented under a hardship exception granted by the Board under this Paragraph shall not be counted as a non-Owner occupied Unit for the purpose of determining whether a rental would cause the number of non-Owner occupied Units to exceed the Rental Ceiling.

 

3.13.13 Rental Processing Fees. The Board shall be authorized from time to time to establish and charge reasonable fees in connection with the rental of Units, the maintaining of Tenant information and the rental waiting list, and the screening of Tenants to defray the added administrative costs of such activities. Such fees shall be collectable as a special Assessment against the Unit and its Owner.

3.14 Governing Documents to Be Provided to Tenants. Each Unit Owner who Rents or Leases a Unit in the Condominium to a Tenant or allows the occupancy of a Unit by a Related Party shall provide that Tenant or Related Party with a copy of the Governing Documents. If the Unit Owner fails to provide written evidence to the Association that it has done so, the Association may furnish a copy of these documents to the Tenant or Related Party and charge the Owner an amount to be determined by the Board for each document provided. Unless otherwise set by the Board, the copying charge shall be twenty five cents ($.25) for each page. The copying charge shall be collectable as a special Assessment against the Unit and its Owner.

3.15.1 Applicability. Section 3.15 shall be applicable to the Rental of any Unit in the Condominium other than to a Related Party.

 

3.15.2 Tenant Screening Required. Any Unit Owner who desires to rent a Unit to a person (referred to in the Declaration as an "Applicant"), other than a Related Party, shall, prior to entering into a Lease, submit to the individual designated by the Association (referred to in the Declaration as the "Association's designee") for each Applicant a fully completed rental application and consent to obtain a consumer credit report, in the fonn provided by the Association, together with payment of the tenant screening fee prescribed by the tenant screening service with which Association has contracted (referred to in the Declaration as the "Service").

 

3.15.3 Nature of Screening Required. The Association's designee shall forward the application and consent to the Service which shall take the following steps with regard to each Applicant:

 

3.15.3.1 Obtain a consumer credit report on the Applicant; 3.15.3.2 Verify the Applicant's employment for the last two years;

 

3.15.3.3 Check the Applicant's rental history in its database and with all landlords during the last two years, either as reported by the Applicant or disclosed by the Service's investigation.

 

3.15.3.4 Check the public records in the counties of the Applicant's residence for bankruptcy and unlawful detainer actions and criminal convictions involving the Applicant;

3.15.4 Responsibility for Tenant Selection. Neither the Association's designee nor the Association shall evaluate any information provided by the Service or in any way make a determination or recommendation as to the suitability of any Applicant. The selection of a suitable and appropriate Tenant shall be the sole responsibility of the Owner.

 

3.15.5 Confidentiality. The Association's designee and the Owner shall treat all information received in accordance with the requirements of the Federal Fair Credit Reporting Act and any other applicable state or federal laws and not disclose the contents of any report to the Applicant or any other person not permitted access to such information provided by the Service. The Association's designee and each Owner submitting an application shall sign a Non-Disclosure Agreement which spells out the signer's duties under the law with regard to the information provided by the Service.

 

3.15.6 Owner's Use of Alternative Service. In lieu of obtaining the required information with regard to an Applicant through the Association, an Owner may obtain such information directly from a comparable tenant screening service. In lieu of providing a means for the Owner to obtain a screening report through the Association, the Board may require the Owner to obtain such information directly from a tenant screening service which provides the information required by Paragraph 3.15.3. In either such event, the Owner shall transmit a copy of the Applicant's application and the screening service's report for the Applicant to the Association's designee along with the Lease.

 

3.16.1 Registration of Pre-Existing Occupants. All Occupants occupying Units at the time this amendment is adopted must be registered with the Board within thirty (30) days of the adoption of this amendment. As used in this Section, the term registration shall mean the filing by the Owner with the Board or its authorized representative of a written statement setting forth the following information:

 

3.16.1.1 the name, telephone numbers, and correct street address of the Owner of the Unit;

 

3.16.1.2 the Unit number and names and telephone numbers of all Occupants of the Unit other than the Owner; and

 

3.16.1.3 any other information regarding the Occupants of the Unit which shall be reasonably required by the Board.

 

3.16.2 Registration of New Occupants. All Owners must register new Occupants with the Board at the time they move in or within forty-eight (48) hours of meeting the definition specified in Paragraph 1.1.4. Nothing in this Section shall preclude an Occupant from submitting the registration required by this Paragraph or the preceding Paragraph.

 

3.16.3 Updating of Registration Information. All Owners shall advise the Board or the Manager in writing of any changes in the registration information required to be provided in this Section on a current basis.

 

3.16.4 Notice of Moving Date. All Occupants shall provide the Board with reasonable prior notice of the date on which they expect to move into or out of a Unit.

 

3.16.5 Move-In and Move-Out Fees. The Board shall be authorized to assess a reasonable fee against any Owner and his or her Unit in connection with the moving of any new Occupant into a Unit, and in connection with the moving out of any Occupant from a Unit. The fee shall be paid prior to the move.