AMENDMENT 4
Article VII, Section 7.6 of the Declaration shall be amended to read as follows:
“Section 7.6 Leases of Units. (a) For any Owner of a Residential Unit who has purchased or otherwise acquired that Unit after the effective date of the Amendments to this Section, that Residential Unit shall not be leased unless and until the new Owner of that Residential Unit has lived within that Residential Unit for more than six months of a consecutive twelve (12) month period.
(b) Any lease of a Residential Unit or portion thereof shall be in writing and shall provide that the terms of the lease shall be subject in all respects to the Condominium Documents. The lease shall further provide that any failure by the lessee to comply with all of the terms of such Condominium Documents shall constitute a default under the lease. Upon the commencement of any lease, the Residential Unit Owner shall pay to the Association a security deposit in the amount of 30% of the monthly rent payable under the lease, to be held by the Association in accordance with the North Carolina Tenant Security Deposit Act, and applied against the cost of repairing any damage to the Common Elements caused by the negligence or intentional misconduct of such tenant or his or her agents, guests, invitees or family members, as provided in Section 5.4 Within thirty (30) days of the commencement of any lease, the Residential Unit Owner shall provide to the Onsite Manager a complete copy of the lease, along with the names, email addresses, telephone numbers and license plate numbers of each adult tenant and of each juvenile tenant residing in the Unit without an adult, and such other information as the Association may reasonably require. The Residential Unit Owner shall further provide to the Onsite Manager a written statement, signed by the Residential Unit Owner before a notary public, that prior to entering into the lease of the Residential Unit, the Residential Unit Owner had obtained a criminal background check and credit check on all adult tenants and on all juvenile tenants residing in the Unit without an adult.
(c) No Residential Unit may be leased or advertised for lease for a period shorter than one year. In the event that a Residential Unit is leased or advertised for lease for a period of shorter than one year, each day that the Residential Unit is leased or advertised for lease for this shorter period shall constitute a separate violation of this Declaration and subject the Residential Unit Owner to daily fines.
(d) Beginning as of the effective date of the Amendments to this Section, no more than forty per cent (40%) of the Residential Units may be leased at any given time. Provided, however, that, regardless of the 40% limitation, any Residential Unit Owner, who owned the Unit before the effective date of the Amendments to this Section, shall continue to be free to lease or to continue to lease his or her Residential Unit. If the Owner of a Residential Unit who owned that Unit before the effective date of the Amendments to this Section - whether or not that Unit has been leased - transfers, sells, or conveys that Residential Unit to any other person or entity, that Residential Unit shall then be subject to the 40% leasing restriction. Provided, however, that if the Residential Unit is being leased at the time of the sale, transfer or conveyance, the tenancy may continue until the end of the lease period, at which time the Residential Unit shall then become subject to the 40% leasing restriction. The new Owner, after complying with the provisions of Section 7.6(a) herein, shall be obligated to abide by the rental cap and will only be allowed to rent that Unit if the total percentage of Residential Units leased is less than 40%.
(e) Any new Residential Unit Owner, who has purchased or otherwise acquired the Unit after the effective date of the Amendments to this Section, after complying with the provisions of Section 7.6(a) herein, may apply to the Association, using an approved application form, for permission to lease that Residential Unit. If less than 40% of the Residential Units are leased, the Association shall authorize that new Residential Unit Owner to lease his or her Unit. Otherwise, the Association shall maintain a list of leased Residential Units within the Condominium Association Units and shall approve completed applications as rental opportunities become available on a first come, first served basis. The Association shall also maintain a waiting list of Residential Unit Owners wishing to lease their Units. The new Owner of a Residential Unit, who has been authorized by the Association to lease that Unit, shall be allowed to continue leasing that Residential Unit for so long as there is no change in the ownership of that Residential Unit and that Residential Unit continues to be occupied by a tenant. For purposes of this Section 7.6(e), “continues to be occupied by a tenant” shall mean that upon the termination of a written lease term, the Residential Unit is re-leased to the same tenant or is leased to another tenant within 60 days of the termination of the prior lease. Any Owner who loses the right to lease Residential Unit for failure to keep that Residential Unit continuously occupied by a tenant, may later apply to lease that Residential Unit. If less than 40% of the Residential Units are leased, the Association shall authorize that Owner to re- lease his or her Unit. Otherwise, that Owner shall be placed on the waiting list, as outlined above in this Section 7.6(e).
(f) In the event of a violation of the governing documents of the Association, the Association may demand that the Residential Unit Owner evict the renters and the Residential Unit Owner shall comply or be subject to a daily fine.”