(1) Definitions: 

a. A renter is any individual or entity that occupies a residential property within the neighborhood under a lease or rental agreement. The renter does not own the property but has been granted the right to reside in the property for a specified period in exchange for payment (typically referred to as rent) to the property owner. The renter is required to comply with all HOA rules, regulations, and community guidelines during their tenancy.

b. A rental property is any residential property within the neighborhood that is owned by an individual or entity (the homeowner or landlord) and is leased or rented to a renter. The rental property is subject to the same HOA rules, regulations, and community guidelines as properties occupied by their owners. Additionally, the rental property must adhere to specific restrictions and requirements outlined in the HOA’s governing documents, including any limits on the number of rental properties allowed within the community.

(2) Limitation on Rental Properties:

a. The total number of properties within the neighborhood that may be leased or rented shall not exceed 7.5% of the total number of homes within the community.

b. The number of allowable rental properties will be determined by the Board based on the total number of homes as of the date of the adoption of thisindenture.

c. Any homeowner intending to lease or rent their property must apply for approval from the Board. Approval will be granted on a first-come, first-served basis, and only if the rental cap has not been exceeded.

(3). Rental Application and Approval Process:

a. Homeowners seeking to rent out their property must submit a Rental Application to the HOA Board at least 30 days prior to entering into any rental agreement.

b. The application must include a copy of the proposed rental agreement, the tenant’s contact information, and any other information requested by the Board.

c. The Board reserves the right to approve or deny any rental application based on compliance with this indenture, HOA rules, and community guidelines.

(4). Security Deposit for Rental Properties:

a. Each homeowner leasing their property must submit a security deposit of $2,000 to the HOA.

b. The deposit will be held by the HOA to cover any unforeseen damages to common areas or community amenities caused by the tenant(s).

c. If no damages occur during the lease period, the deposit will be returned to the homeowner within 30 days after the lease ends and the tenant vacates the property.

d. In the event of damages, the Board will assess the cost of repairs and deduct it from the deposit. The remaining balance, if any, will be returned to the homeowner.

(5). Pool Card and Amenity Access Fee:

a. A fee of $10 per rental agreement is required for pool card access. This fee is non-refundable and must be paid by the homeowner at the time the rental application is submitted.

b. Pool cards will be activated or deactivated based on the current rental status. Homeowners are responsible for ensuring their tenants comply with all community rules when using the pool and other amenities.

(6). Rental Agreement Submission:

a. A copy of the signed rental agreement must be submitted to the HOA Board within 7 days of execution.

b. The rental agreement must include a clause stating that the tenant agrees to abide by all HOA rules, regulations, and community guidelines.

c. Failure to submit the rental agreement within the specified time frame may result in penalties or revocation of rental approval.

(7). Enforcement and Penalties:

a. Any homeowner found to be in violation of this indenture, including exceeding the rental cap, failing to submit the required deposit, or not submitting the rental agreement, may face fines, suspension of amenities access, or other actions as deemed appropriate by the Board.

b. The Board reserves the right to conduct regular audits of rental properties and enforce compliance with all HOA regulations.

(8). Severability:

If any provision of this indenture is found to be unenforceable or invalid by a court of law, the remaining provisions shall remain in full force and effect.