HOA ban on rentals may cool home sales
Note the name of this HOA. Agritopia? Excuse me--does that sound at all derivative? But the real reason for including this extract is to highlight the point Fred Pilot astutely picked up on. HOA lawyer Scott Carpenter says first that no-rent clauses are like municipal ordinances, then says that they are private contracts. As Fred says, this is a good example of the industry "attempting to straddle the line between HOAs as public vs. private entities."

Every house along the neatly planned streets of Agritopia has a porch, a patch of grass and a little slice of the American dream. The idyllic "country" living appeals to newcomers flocking to Gilbert every month. But don't look to rent a home there. Homeowners in Agritopia sign contracts prohibiting them from renting out their homes beyond a room, guesthouse or garage apartment...HOAs' changing their rules to prohibit rentals is similar to cities' changing their zoning codes. It's a move that is within the rights of the governing body, argues Scott Carpenter, an attorney who represents homeowners associations. "When you choose to live in a planned community, it's a contractual matter, not a property-rights issue," he said.