In attempts to sell my condo last summer, I was getting feedback that it could not be financed. After calls to county assessor/planning zoning to see if there were issues on the deed/zoning to verify that it was not listed as resortel, condotel or non warranty deed. The assessor confirmed that I hold a Warranty Deed and that it is zoned Multi-residential. (I had heard from realtors that it could not be financed due to everything from Blue Sky to Non Warranty Deed or it is a condotel/resortel.)
I reported the information to the HOA Board and management company during an HOA meeting and asked that they assist in resolving the issue of equity/property values and to obtain the information for Fanny Mae backed financing for FHA. The meeting was to vote on special assessment to increase the reserve fund for building improvements.
During the meeting, I discovered that there was one owner that had 14 units being rented out in a commercial manner and another 10 units being rented/managed by realtor. I contacted county assessors office and they have no recorded of any rentals reported/recorded in the building period. I'm concerned trying to have the HOA Management to assist in correcting multiple issues to resolve for Fanny Mae approval.
Also, is it legal for an investor to purchase private multi-residential units and then operate as commercial? What can our HOA/Management Co. do to force the renting out of units in a commercial manner, if our current CCRs do not reflect articles to cover over/wrongful renting to preserve the property values/ability to obtain financing. Need help in Arizona
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