Creekmont Community

The POA has been proposed by the Board in response to the increasing number of corporate rentals in Georgia and within our community. Beyond concerns about nuisance tenants and neglected property upkeep, an increase in rentals directly impacts home appraisals. Mortgage lenders, including FHA, are less willing to grant loans in communities where rentals exceed 15%. This not only leads to declining property values but also makes it more difficult for potential buyers to secure loans, which can significantly impact community members’ ability to sell their homes. With roughly 63 homes in our community, it only takes 9 rental properties to hit that 15% threshold, which we have already reached. To prevent further impact, the POA includes rental caps to protect home values. However, concerns have been raised about limiting options for homeowners who may need to rent due to personal circumstances like medical issues, job relocation, or military deployment.

The short answer is no. State laws, including Georgia’s Title Law and Judicial Foreclosure laws, protect homeowners from unjust fines, fees, and foreclosure actions by the Board. For example, if a homeowner accumulates $2,000 in fines for minor violations like trash cans or a broken mailbox, judicial foreclosure offers significant protections. Key protections include: Strict Notification: The Board must follow strict notification requirements, including certified mail, to ensure the homeowner is properly informed. Cure Time: Homeowners are given reasonable time to address violations, pay fees, or dispute charges before foreclosure can proceed. Judicial Review: A judge must review the case before foreclosure, ensuring the process follows state laws and provides homeowners with a chance to rectify or contest violations. Equal Treatment: The Board must apply violations and fees consistently to all homeowners. Foreclosure can be dismissed if it’s found that targeting or unequal treatment occurred. In addition, the Board must notify any lienholders or mortgage companies, giving them the chance to settle debts through escrow.

Yes. To prevent further impact, the POA includes rental caps to protect home values. However, concerns have been raised about limiting options for homeowners who may need to rent due to personal circumstances like medical issues, job relocation, or military deployment. To address this, hardship rental licenses have been proposed. These temporary licenses, which require annual renewal, DO NOT count toward the 15% rental cap as they are classified differently than a standard rental property, ensuring residents can rent under specific circumstances without affecting the overall community. Rental caps are common and effective at maintaining property values. The POA’s goal is to prevent large-scale corporate ownership while preserving the neighborhood’s character and protecting home values.

Yes, the hardship licenses have more flexibility than standard rental licenses due to the nature of the purpose for the renting.