If bought a condo but the developer continues to significantly rent units is there an out for a condo owner Is the developer responsible for a certain buyer vs renter percentage?

Answer 1

Read your governing documents to determine what the developer is 'allowed' to do during the 'declarant control period'. As well, determine the status of the project, so that you know what ratios are appropriate in your case.

After the first sale by the developer, the clock ticks on several legal elements* within the public offering statement. These include not only declarant's rights, but obligations, responsibilities and so forth. Among these is the responsibility to maintain an owner/renter ratio sufficient to continue to attract mortgage funders.

Fannie Mae and Freddie Mac and FHA all have ratios that can be different depending on whether your project is 'new' or 'established'.

If you are paying monthly assessments, there is some form of association board to whom you can appeal in writing, if the ratio can affect mortgages.

(*As well, in a new project, construction defect statutes of limitations are critical to understand, so that the developer is held to account for construction defects which the association must act upon in order to claim against the developer, to avoid paying for construction defects in later years.)

Best practices indicate that you find and join a local chapter of Community Association Institute, a national organization, where you can educate yourself about the early years of condominium ownership in your state and location. A link to their Web site, below.