From the advice of one of our preferred Attorneys, Mr. Chris Combs of Combs, Gottlieb & MacQueen, P.C.:

Ban On Short-Term Renters of Condominiums Requires Unanimous Vote

Question: We live in a condominium community in central Phoenix. In the last two years we have had a number of the condominiums being used as short-term rentals. The result is that our condominium community is now much noisier and less friendly. A large group of us want to amend our CC&Rs to prohibit short-term rentals in our condominium community. Our CC&Rs require 67% of the condominium owners to agree to any amendment of our CC&Rs. Although 67% of the condominium owners will probably agree to this amendment if we present our arguments against short-term rentals, there will have to be some education and some meetings. In the meantime, however, if there are any more short-term rentals, we may fall below the 67% required number of condominium owners. Therefore, we want to try to amend our CC&Rs immediately with the approval of 67% of the condominium owners to allow only 51% of the condominium owners to approve any amendments to the CC&Rs. We should then have the time for education and meetings to amend the CC&Rs to prohibit short-term rentals with the approval of 51% of the condominium owners. First, can we amend the CC&Rs from 67% owner-approval to only 51% owner-approval of future amendments to the CC&Rs? Second, can we then amend our CC&Rs by 51% owner-approval to prohibit short-term rentals?

Answer: No to both questions. First, unlike communities of single-family homes, the CC&Rs of a condominium community must provide that any amendment to the CC&Rs be approved by at least 67% of the condominium owners. Therefore, you cannot amend the CC&Rs with 67% of the condominium owners to allow future amendments of the CC&Rs by only 51% approval of the condominium owners. A.R.S. § 33-1227(A). Second, any amendment to the CC&Rs of a condominium community to restrict the use of a condominium, e.g., to prohibit the use of a condominium as a short-term rental, requires a unanimous vote of the condominium unit owners. A.R.S § 33-1227(D).

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