Last Updated: June 21, 2013 (Digital Document Creation)

REGULATIONS OF THE MAPLEWOOD COUNCIL ARTICLE 7: LEASING Leasing within a condominium form of ownership is highly complex because of levels of responsibility, by-law restrictions, operational and insurance protocols that directly and indirectly affect this circumstance, and external laws that also mandate requirements. Most owners are unaware of city ordinances, zoning limits, permit requirements, etc. Depending on exact circumstance, what can be an innocent offering to a friend to stay as a guest can be considered a legal tenancy that invokes a myriad of obligations. It is therefore highly advisable that owners direct their concerns and plans to the Board of Directors prior to considering any changes in living arrangement. Potential buyers should consult the Association with regards to leasing before considering a permanent investment. Section 1. Leasing Requisites a. Owners may lease their condominium town home unit for residential purposes, no sooner than one year (365 days) from the effective date of purchase, under a written lease for a term of at least 30 days, providing that the lease is made subject to all provisions as affect the owner himself/herself and to the end that the tenant shall be bound at least as is the owner with reference to possession, use, and occupancy, and in all ways pertaining thereto. b. A condominium town home unit that is leased within the effective date of purchase and 365 days, is in violation of the regulations, and the Association has the authority to remedy through legal action. Penalties shall apply as follows: Equal to 75% of the total rental revenue established by written or verbal lease agreement. All applicable lease violation charges. All applicable court costs and associated fees related to legal proceedings. c. Owners, and their tenants, must abide by existing federal, state, and local laws and ordinances pertaining to matters of rental housing such as, but not limited to, fair housing practices, noise, animal, housing permits, occupancy, and the like. Specifically, no condominium unit shall be leased, in whole or in part, by any person unless it is first in compliance with the ordinance for Rental Housing set forth by the Centre Region Code Administration. Occupancy of a condominium town home unit by any person other than the owner of record shall be presumed to require a rental license. d. Owners, and their tenants, must abide by Maplewood Condominium Associations current Declaration, Code of Regulations, Regulations of the Council, and all future regulations promulgated by the Association. Section 2. Leasing Proviso a. The Association is an organization with a specific membership (Maplewood Condominium owners) and it is obliged to communicate directly with its members. The Association will communicate officially only with an owner of a condominium town home unit, be it leased, vacant, or owner-occupied. The Board of Directors is not accountable to an owners guest, tenant, or representative. The Association will not communicate with an owners representative if acquired for the purposes of property management. Owners have the responsibility to communicate information to other parties such as guests, tenants, and hired representatives.

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b. Condominium owners and their tenants are jointly and severally liable. Hence, all consequences stemming from a tenants action and inaction are the responsibility of the owner. If any action or inaction falls outside of the Associations by-laws, it will be communicated to an owner directly, along with any associated charges. c. If a condominium owner provides occupancy (housing) to non-family members, with or without a lease agreement, or monetary exchange, such owner must acquire a Rental Housing License (permit). d. If the condominium unit is owner-occupied, meaning the unit is the primary residence of the owner of record, and such owner is providing occupancy (housing) to non-family members while he/she him/herself is physically present during the hosting, such owner is exempt from the rental housing ordinance, if the GUEST or TEMPORARY NONFAMILY RESIDENT is a person who stays for less than 30 days. However, if an owner absents him/herself (is not hosting) while providing occupancy to non-family members for a term between 2-30 days, the owner is in violation of the rental regulations set forth by the Association, and is subject to a penalty as set forth in this Article. e. A TENANT is a non-family resident who occupies a condominium town home unit longer than 30 days and is, for all intents and purposes, occupying the premises on a permanent basis as residence. f. The Association and the Centre Region Code Administration have means of assessing if an owner is providing housing that requires a Rental Housing License. Please consult both organizations. g. Each condominium unit is restricted to residential use by owners, and their immediate family, guests, tenants, and invitees. Each condominium unit is intended for independent use and shall be used only as a residence and for the purposes incidental to such uses. Section 3. Leasing Procedure & Limitations The following subdivisions outline the procedure that must be followed in order to comply with the Associations leasing regulations. Owners cannot provide housing to non-family members before COMPLETEING ALL STEPS and FURNISHING the Association with the REQUIRED DOCUMENTATION.

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a. Prior to Leasing

STEP 1
Submit Association

LEASE REQUEST FORM

Submit a REQUEST TO LEASE FORM (maplewoodcondo.org/lease-requestform/) to the Association. Without such a request, any further actions taken towards leasing will be considered a violation of the regulations, subject to fines and/or immediate termination of leasing activity.

STEP 2
Pay Association

ANNUAL LEASE FEE $25

A non-refundable fee, payable along with the submission of the request to lease, and annually thereafter as long as a unit has been leased at least once during the Associations fiscal year. Lease activity adds additional administrative burdens on the Associations limited resources. There is a separate administrative process that is in effect specifically to oversee and enforce regulations that govern leasing activity.

STEP 3
Copy Association

ACQUIRE RENTAL HOUSING PERMIT

You must have a valid and current Rental Housing Permit, covering the lease term. Permits must be renewed and kept current. One copy of the permit must be submitted to the Association at the originating issuance date and at each renewal date. Contact Centre Region Code Administration (CRCA) to obtain a permit and follow their procedure. Please note that this process could take months. Your premises will be inspected and changes to the condominium town home unit may be requested prior to approval. Once the permit is issued, it is valid for one year and regular inspections will automatically be scheduled by the CRCA for the entire duration a permit is held. Providing housing to non-family members without a permit is a violation of the Patton Township Municipal Ordinance: Occupancy without a license - No person shall occupy, and no owner or person-in- charge shall allow a person to occupy, a rental unit unless a rental license applicable to the rental unit has been issued and remains in effect. Each day that a violation exists shall constitute a separate offense.

STEP 4

ACQUIRE LANDORD INSURANCE POLICY

Owners are responsible for acquiring and maintaining insurance for the duration of the lease term, and such a policy is typically referred to as a Landlord Insurance Policy. It is advisable to carry a minimum of $1,000,000 yearly liability coverage. Please see Article 8 and (maplewoodcondo.org/insurance) for a full discussion.

Last Updated: June 21, 2013 (Digital Document Creation)

b. Limitations to Leasing to the Public Once an owner has obtained a Rental Permit, they may offer their condominium unit to the public for leasing through advertising vehicles of their choice. At such time, owners must abide by existing federal, state, and local ordinances pertaining to matters of rental housing such as, but not limited to, fair housing practices, noise, animal, housing permits, occupancy, and the like. It is advisable to inform prospective tenants that they will be expected to respect and follow all condominium by-laws and policy as residents on the premises. Owners may direct prospective tenants to the website for information where a section has been prepared specifically for them. Leasing may be pursued with the following limitations:

LIMITATIONS

SHORT-TERM LEASING (Less than 30 days)

a. An owner cannot lease for a term less than 30 days. b. It is strictly prohibited if a person occupies a condo unit for a term of between 2-30 days, whose main purpose of visitation is attendance of a specified event (graduation, concert, sports event, etc.,). Such offering is tantamount to that of a commercial establishment (hotel, motel) and is incongruent with residential locality. Such offering may also be contrary to restrictions set forth by the Rental Housing Permit issued.

ONE LEASE PER Leases must be limited to only ONE per unit per time period, and all tenants must appear on the same lease contract. Hence multiple leases covering the same time period TIME are prohibited, as well as leasing individual rooms.

OCCUPANCY

Limited to either a or b: a. Three Unrelated Individuals b. One Family + up to 2 unrelated individuals ALTOGETHER NOT EXCEEDING 4 PERSONS

UNDERGRADUATE STUDENTS

An owner cannot lease, or sub-lease, to an individual enrolled at a University or College who has not yet attained a Bachelors Degree, herein referred to as Undergraduate Student.

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c. Prior to Tenant Entry On Maplewood Property All documentation requested below must be submitted to the Association BEFORE the tenant is permitted to enter Maplewood Condominiums property as resident. Hence, before the tenant is permitted to move in, the tenant should have (1) a written lease agreement, (2) read all the bylaws, (3) submitted his/her information form, and (4) should have acquired renters insurance. The Association must verify each document submitted in order that any detectable problem can be corrected properly at this stage. In addition, since tenants are considered Third Party entities vis--vis the Association, a tenant increases the Associations overall liability if on premises without proper insurance. Once a tenant is secured, it is highly advisable, as well as customary, to conduct background checks such as credit and criminal, before making the offer final. Such customary scrutiny protects owners, and the condominium community at large, from experiencing problems that may develop later. Please note that such steps are not required by the Association, and are merely suggested for additional assurance and safety. An owner must furnish the tenant with a complete physical copy (or direct tenant to the website) of the by-laws and policy. Tenants have the same rights and obligations as owners, and are subject to all by-laws. Owners are responsible for keeping tenants informed. The Association is not accountable to a tenant.

STEP 5

ACQUIRE TENANT

STEP 6

SUPPLY TENANT WITH BYLAWS

STEP 7
Copy Association

WRITTEN LEASE AGREEMENT

a. Owners must have a valid written lease agreement, limited to residential use, and for a minimum of 30 days. b. A lease must be made subject to all provisions as affect the owner him/herself and to the end that the tenant shall be bound at least as is the owner with reference to possession, use, and occupancy, and in all ways pertaining thereto. c. A lease must identify (a) the property address being leased, (b) Landlord, (c) all Tenants by their full legal names, and (d) have a specified lease term with a clear beginning and ending date. The contract should be (e) clearly signed and dated by all parties, and (f) the date entered into agreement should be prior to the date of the beginning of the lease term. d. A lease must have a FIRE SAFETY CERTFICATION AGREEMENT for the tenant. (http://maplewoodcondo.org/fire-safety-certification-agreement/) e. Owners shall provide one copy of the lease agreement to the Association at the beginning of each new lease term (so for new tenants and for existing tenants with a renewal lease). Copy of leases can be restricted to the page that states: a) property address, (b) Landlord, (c) Tenants, (d) lease term, (e) signatures of all parties, (f) the date entered into agreement.

Last Updated: June 21, 2013 (Digital Document Creation)

STEP 8
Submit Association

TENANT INFORMATION FORM

Submit a TENANT INFORMATION FORM (maplewoodcondo.org/tenantinformation-form/) to the Association. The Association reviews this information and, if no issues are detected, will update the records so tenants are identified. A tenant is REQUIRED to acquire Renters Insurance according to Article 8, Section 6. A tenant MUST: a. Acquire insurance and show proof thereof prior to coming onto the property. b. Maintain insurance for the duration of the lease term, and show proof thereof at renewal dates. c. Carry minimum liability coverage in the amount of $500,000. d. Name Maplewood Condominium Association and the Landlord as ADDITIONAL INSURED in the policy. Please see Article 8, Section 6, and (maplewoodcondo.org/insurance) for full requirements.

STEP 9
Copy Association

TENANT ACQUIRES RENTER INSURANCE

d. Provide Documentation and Renewals ALL DOCUMENTATION MUST BE PROVIDED TO THE ASSOCIATION BEFORE A TENANT HAS THE AUTHORITY TO COME ONTO MAPLEWOD CONDOMINIUMS PROPERTY. Owners must furnish the Association with 1 COPY of the following documentation, and automatically update such information upon renewal. Below is a convenient summary of all documentation that is due to the Association as part of the leasing requirements.

SUMMARY OF DOCUMENTATION OWNERS MUST PROVIDE PRIOR TO FIRST TIME LEASING AT RENEWAL DATES

REQUEST TO LEASE FORM ANNUAL LEASE FEE Paid annually as long as a unit has been leased at least once during the Associations fiscal year Submit one copy at renewal date

RENTAL PERMIT

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WRITTEN LEASE AGREEMENT

Submit one copy at the beginning of each new lease term (so for new tenants and for existing tenants with a renewal lease)

TENANT INFORMATION FORM

Submit at each new lease term (even for existing tenants) Submit the Certificate of Insurance page at each renewal date

CERTIFICATE OF RENTER INSURANCE

Section 4. Leasing Violation Penalties If an owner violates any of the requirements for leasing set forth by the Association, please be advised that the Association will have the authority to remedy through legal action and/or injunction, beyond the fines set forth below. If litigation is required, the unsuccessful party shall pay all legal fees of the Association. Ultimately, all unpaid fines/penalties will be recorded as liens and stated in the Certificate of Resale.

Description of Violation

FINE

RENTAL PERMIT

If Rental Permit is not acquired and/or maintained, as per Municipal Ordinance, the Association reserves the right to inform CRCA for proper action. The Association is automatically released from all liability stemming from a leased unit without a permit. The Association will verify permit currency and validity through the owners submission of the original issuance and renewed Rental Permit. If an owner is in violation, a $50 penalty shall apply from the beginning of the initial lease term (in the case where an owner never acquired a permit) or from the latest ending date of coverage (in the case where an owner failed to renew a permit). Such penalty shall accrue $50 every 30 days thereafter until such documentation is provided to the Association.

$50 every 30 days until document is provided

WRITTEN LEASE AGREEME NT

An owner must provide the Association with updated information with regards to all written lease agreements (i.e., new leases and extensions of lease agreements). If an owner is in violation, a $50 penalty shall apply from the beginning of the initial lease term (in the case where an owner never supplied a written lease agreement) or from the last ending date of lease (in the case where an owner failed to update information). Such penalty shall accrue $50 every 30 days thereafter until such documentation is provided to the Association.

$50 every 30 days until document is provided

Last Updated: June 21, 2013 (Digital Document Creation)

TENANT INFO FORM

An owner must provide the Association with updated information with regards to tenants at all executed lease agreements, hence for new leases and extensions of lease agreements. If an owner is in violation, a $25 penalty shall apply from the beginning of the initial lease term (in the case where an owner never supplied the Tenant Information Form) or from the last ending date of lease (in the case where an owner failed to update such information). Such penalty shall accrue $25 every 30 days thereafter until such documentation is provided to the Association.

$25 every 30 days until document is provided

TENANT RENTER INSURANCE

Owners must require that each tenant acquire and maintain a Renters Insurance Policy with a minimum $500,000 yearly liability coverage for the duration of the lease term. Tenants must name Maplewood Condominium Association and the Landlord as ADDITIONAL INSURED. The Association will verify insurance currency and validity directly through the owners submission of Certificates of Insurance from all existing tenants. If an owner is in violation, a $50 penalty shall apply from the beginning of the initial lease term (in the case where a tenant never acquired insurance) or from the latest ending date of coverage (in the case where a tenant failed to renew insurance). Such penalty shall accrue $50 every 30 days thereafter until such documentation is provided to the Association. Such penalty shall apply to each tenant that is not covered. Owners will receive notice of such penalty and it will be their responsibility to satisfy them.

$50 every 30 days until document is provided

SUPPLY TENANT WITH BY-LAWS

An owner must furnish the tenant with a complete physical copy (or direct tenant to the website) of the by-laws and policy. If there is evidence that the tenant was not properly informed, a penalty of $25 shall apply. In addition, the tenant may also be given a physical copy of the entire contents of the website (by-laws and policy) and the owner will be charged the current fee for one copy of the website materials.

$25 + current cost of website materials

SHORTTERM LEASING

An owner cannot lease for a term less than 30 days. Please be advised that leasing for a term of less than 30 days for sports, concert, graduation, or other short-term events, is strictly prohibited. An owner that vacates a unit for occupancy of non-family members for less than 30 days and/or for leasing such as, but not limited to, weekend-long events (graduations, sports, concert, or other), shall be subject to a penalty of $300, in addition to all other applicable penalties set forth for leases longer than 30 days.

Minimum $300

MULTIPLE Leases must be limited to only ONE per unit per time period, and all tenants LEASES AT must appear on the same lease contract. Hence multiple leases covering the ONE TIME same time period are prohibited. Leasing individual rooms is prohibited. If an

$50 every 30 days until

Last Updated: June 21, 2013 (Digital Document Creation)

owner is in violation, a $50 penalty shall apply from the beginning of any additional lease after the original executed contract or from the beginning of all multiple lease dates if executed simultaneously. Such penalty shall accrue $50 every 30 days thereafter until such time when documentation is provided that supports the existence of only one current, valid, and properly executed lease agreement.

remedied

OCCUPANCY

If an owner is in violation of the occupancy limits, the Association reserves the right to inform CRCA, Patton Township, and other governing agencies for proper action. If an owner is in violation of the occupancy limit, a $250 penalty shall apply from the beginning of the initial lease term. Such penalty shall accrue $100 per violating tenant every 30 days thereafter until the tenant has effectively vacated the leased unit.

$250 + $100 per violating tenant per 30 days

UNDERGRAD STUDENTS

Please be advised that the Association reserves the right to verify if a tenant has Undergraduate Student status. If an owner is in violation, a $250 penalty shall apply from the beginning of the initial lease term. Such penalty shall accrue $100 per violating tenant every 30 days thereafter until the tenant has effectively vacated the leased unit.

$250 + $100 per violating tenant per 30 days