Failure to Respond Does ≠ Approval of ARC / ACC Request

• In Ciochetty v. Fountain Trace Homeowners’ Association, Inc.  the Kentucky Court of Appeals found that an incomplete ARC/ACC application voids the plain language 30 day response requirement

• The Court noted that it is best practice to respond in a timely manner to all requests and not simply ignore them.  

  • Be reasonable!  Please provide timely responses to requests and inquiries from your homeowners.

Declaration and Covenants (CC&Rs) Regulate Leasing

• In JBrice Holdings, L.L.C. v. Wilcrest Walk Townhomes Association, Inc., the Texas Supreme Court reaffirmed that a Board is not empowered to regulate leasing via rules that are not supported by recorded covenants

  • If your declaration / CC&Rs includes language such as "Other than XYZ, there shall be no restriction on the right of any owner to lease its unit," XYZ are the only permissible restrictions.