Amendment to Article IX, Section 9.01

On Wednesday, June 16th, 2004 the Charter Oaks Condominium Board of Managers presented a new By-Laws amendment to the unit owners. It replaces the second paragraph of Article IX, section 9.01 and reads:

In addition, in order to maintain an occupancy rate of 75% of the Units by Owners, only 50 units may be occupied by tenants. Any lease of a unit must include a lease rider provided by the Board of Managers.

There are two major reasons this amendment was first proposed:

1. Insurance: John Grimaldi, our insurance agent, confirmed that if occupancy of a condominium goes above a certain percentage, insurance carriers insist that they be billed at the higher rate used for apartment complexes.

2. Mortgages: Most home mortgages are insured by the FHA. Most banks would not grant mortgages to anyone buying a condo in a complex that has too many rentals.

There are 220 units in Charter Oaks. Presently 37 units are owned by absentee landlords. We are not in immediate danger of crossing the 25% limit but we didn’t want to be.