September 4, 2024
As you are likely aware, there is a debate regarding short-term rentals (STRs) within our community. There are co-owners within this community who have requested that the association prohibit all short-term rentals under its single family residential purposes restriction. However, the association and all previous CRVCA board of directors for the last 20+ years have allowed STRs in this community, as confirmed by the Association’s board meeting minutes. The association also is aware that the original author/developer of the Association’s bylaws, which were drafted 25+ years ago, did not intend to prohibit STRs when drafting our documents.
The association desires to uphold its restrictions that we all agreed to comply with when we purchased our property in the community but the association also is concerned about adopting an approach that may upset the community’s expectations that were based on, or even encouraged by, the association’s action, or inaction, regarding STRs. To further complicate matters, a case regarding short-term rentals and restrictive covenants, such as those contained in our documents, is currently pending before the Michigan Supreme Court and it is possible that the outcome of that case may change the law in this area.
Because of the potential legal risks posed by both scenarios, and the association’s concern about spending association funds engaged in a lawsuit regarding STRs that may result in a decision that is later unwound by a decision by the Michigan Supreme Court, the board of directors is proposing a code of conduct for STRs in an effort to provide a reasoned path forward that considers the views and lifestyles of all residents, balancing the need for regulation with the value of community cohesion, while awaiting a decision from the Michigan Supreme Court.
The association will, of course, revisit its position on this issue when a decision from the Michigan Supreme Court is made. In the meantime, the association understands that co-owners who engage in STRs and those who do not like STRs may still have concerns that need to be addressed. The association hopes to address and alleviate these concerns to the extent possible so please direct any concerns you may have to the association’s official communication channels. The Association position statement on STR is advised by and approved by Association counsel.
Sincerely, CRVCA Board of Directors