Owner-occupied requirements for condos

[Sarah Schwab]

Who knows about the laws and rules regarding the # of units within a condo that are allowed to be rentals vs. owner-occupied? My understanding is that HOAs typically require at least 50% of units to be owner-occupied. But where does that number come from? - building insurance requirements? banking requirements? I see that the "Housing Opportunity Through Modernization Act of 2016" changed the FHA rules regarding condo financing and reduced the owner-occupied threshold from 50% to 35%. Is this where the 50% originated?

We own in a small building of only 7 units. So currently only 3 can be rented, but a 4th owner would like to rent out his unit so I'm trying to understand all these rules and laws to see if we can collectively change our HOA rules accordingly. The building was built in the 50s. Thanks in advance!

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Who knows about the laws and rules regarding the # of units within a condo that are allowed to be rentals vs. owner-occupied? My understanding is that HOAs typically require at least 50% of units to be owner-occupied. But where does that number come from? - building insurance requirements? banking requirements? I see that the "Housing Opportunity Through Modernization Act of 2016" changed the FHA rules regarding condo financing and reduced the owner-occupied threshold from 50% to 35%. Is this where the 50% originated?

We own in a small building of only 7 units. So currently only 3 can be rented, but a 4th owner would like to rent out his unit so I'm trying to understand all these rules and laws to see if we can collectively change our HOA rules accordingly. The building was built in the 50s. Thanks in advance!