I own a $400K condo free and clear in Southern California. The Condo Association's board has refused to accept me as a member because my "taxable net income" is below their stated income requirement. My gross income is far above their requirements, but because I use tax law to lower my tax liability (as any business owner would), I don't meet their "minimum income requirement for membership".

My assets are 10 times the assets requirement, and I have enough assets to cover my condo costs for 20 years, assuming no future income. In addition, my condo is a valuable rental property generating a net annual profit/income that is nearly enough to qualify for membership on its own... but the association will not accept income or asset value from the condo itself.

As a result of denying me membership, the association will not allow me to occupy nor rent the condo! This is a ridiculous situation which enables folks with huge mortgages and high risk to qualify for membership while someone with stable, huge assets cannot qualify if their taxable income doesn't meet the board's approval.

What can I do?? HELP!!

Use this link:

http://www.lsnc.net/housing/fh_manua...A%20STATUTE%22

Check out pages 3 and 4, should help some. I would put to on Notice of violation of rights, in writing. Make a paper trail for you, if a lawsuit become necessary.

Hello mojou2:

You're not going to like my answer. Move! Or rather, Sell!

Unless, of course, you're willing to take the board to court, and that's going to cost bunches. And, if you win, what if they don't like your tenant? Or the flowers you put in your window?

In this country, right now, HOA's and their boards are mini governments and they're run by fascist's. That's soon to change, but until then, either conform or sell.

But in your case, there is no conformation. They just don't like you. You're not rich enough for them. Who would want to live amongst such people?

excon

PS> You also don't want to hear that I would NEVER share my tax return with an organization considering my membership. How much I make is nobody's business. But that's me.

PPS> What was the name of the property? Agrestic?

I do know condo associations have a lot of leeway to do and require what they want - but this sounds preposterous to me. I do not see how they can physically prohibit you from living in a condo that you own free and clear. If it was a dues or fines issue, their only recourse, to the best of my knowledge, would be to sue you and get a lien put on it... but in that case you'd answer, show up in court and argue your case.

I am not an attorney nor expert in this matter, but if it were me I'd do as mr. yet suggested for starters but also complain to your state attorney general.

Keep the paper trail well documented as to actions you take, who you talk to and when, etc...

We do have an attorney who frequents the legal boards here, so I'll move this thread there for a better chance of her seeing it.

I think this law:

http://davis-stirling.com/index.html

Is more applicable to your situation.

What I'm confused about is generally, you have to be approved by a condo board BEFORE you are allowed to buy in. So how did you purchase the condo in the first place?

But you now own the property. You can sell it or you file suit against the board claiming their rules are discriminatory and are preventing you from realizing your investment. Of course this means consulting an attorney.

Frankly I'd be hesitant to hire an attorney since you have a key and they probably cannot "evict" you... so I'd do whatever you can that doesn't cost you money... and decide whether it's worth getting an attorney or not if they initiate a suit.

Hello again:

Rick is right. They can't evict you, and they really can't prevent you from moving in. You say they will, but how are they going to do that? They can't. It's a hollow threat. All they can do is prevent you from becoming a member.

GREAT! That means you don't have to agree to any of their fascist rules... Or pay their dues! Move in, and plunk your pink flamingos in the yard. Make them sue you, instead of the other way around.

excon

Quote:

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Originally Posted by ScottGem

What I'm confused about is generally, you have to be approved by a condo board BEFORE you are allowed to buy in. So how did you purchase the condo in the first place?

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Hello again:

Scott too, makes sense.

Condos probably started in LA. Therefore, condo associations in Southern California are not apt to make mistakes. Did you acquire the condo from a private party? He may have been required to have his sale approved by the HOA before it closed. If he didn't, that may be your recourse.

So, how did you buy it?

excon

How do they prevent you from moving in? Have the locks changed and keep the new key for yourself.

You do need an attorney and some media attention on this situation.

Quote:

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Originally Posted by Cvillecpm

How do they prevent you from moving in? Have the locks changed and keep the new key for yourself.

You do need an attorney and some media attention on this situation.

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Assuming it's a Condo apartment, maybe with a doorman, to move in one would need access to the elevators or maybe a freight elevator. Such things are controlled by the building manager and any tenant would have to get permission to use the elevator. That could be how they control who can move in.

The thing is that condos and co-ops are associations, especially existing ones. These associations are generally run by board made up of owners, elected by the other owners. The association is governed by a set of by-laws. If they set up reasonable, non discriminatory rules about who can own, they can control this legally. The rules cannot discriminate on the basis of race, religion etc. but can discriminate on the basis of income.

Whether the board is narrowly or broadly interpreting the rules could be an issue for litigation. But if the rules do require an owner to meet certain standards then there is, almost certainly, a clause that prohibits an owner from selling to someone without board approval. So the question is still how the condo was purchased in the first place.