For over 10 years, there was no working rental cap in effect, even though it was in our bylaws. The community was overly transient, with more than 50% of the units rented.
The previous board of last year passed a resolution (about six months agao) that the community would begin to move toward a goal of 70% owner occupied units. In the state of Virginia (where I am located), in order to qualifiy for FHA loans you must have 51% of the units owner occupied.
However, The new board (installed 5 months ago) has reduced the rental cap to 51%. They say that if we have a 70% rental cap in place, but only have less than 70% of the units owner occupied, then the community will not be eligible for FHA loans.
Is this true? I thought we could have a 70% rental cap and be working towards that goal but as long as the owner occupied units did not fall below 51% we would still be eligible for FHA loans?