Conversion to a Nine (9) Unit Rental Cap Ceiling will begin August 1, 2016
Village Square at Lea Hill Condominium Association
In 2006 Village Square at Lea Hill (VS@LH) owners originally voted to approve these amendments, to provide regulations to deal with the growing number of units being converted to Rental Properties, and to thus provide the ability to handle the new issues that were arising with such business activities. The now restored rental cap amendments will provide the Association the ability to gradually reduce the number of rental units to the approved limit of 9 units specified in our 2006 CC&Rs, as the current Tenants move out, and the Unit is no longer eligible to be rented until there is an available allocation within the nine (9) unit rental ceiling.
The Board of Directors is obligated to enforce the Rules of VS@LH as fairly and as effectively as possible, and in 2011 the Board received a recommendation from the Association’s attorney that certain elements in the amendment, perhaps needed more than the 67% voting approval under RCW 64.34.264(4). The 2011 Board suspended all of the 2006 amendment, pending a court decision interpreting the statutes.
In September 2014, the Division I Court of Appeals (Division I includes King County), ruled that rental caps require at least 90% approval under RCW 64.34.264. The 2006 CC&R Amendments contained a rental cap, but also many more sections which only required 67% approval. In 2014 your Board of Directors decided to restore all of the sections of the 2006 Amendments which only needed the super-majority 67% vote approval, and to continue the suspension of the rental cap sections, pending a possible future Washington State Supreme Court decision that might reverse the Division I Court of Appeals.
The April 28, 2016 Washington State Supreme Court's decision in the Bilanko v. Barclay Court case No. 91247-5, ruled that a Condominium Association’s declaration amendments, adopted in a manner that does not exceed its legal authority and does not appear to be borne out of fraud or other wrongdoing, cannot be challenged more than one year after it is recorded, even without the higher 90% voter approval specified in the controlling statutes.
Based on the Bilanko decision, the VS@LH Board of Directors are in the process of fully restoring the currently suspended 2006 rental cap amendments, which were passed in compliance with the procedures set forth in the association's governing documents, and which can now be enforced, because our 2006 amendments to the Village Square Declarations were not challenged within the required one year of their original 2006 recording in King County. In the near future a more detailed explanation, with a copy of the 2006 amendments will be mailed to the Owners.