HOA Rule Change to Disallow Rentals

[John Smeltzer]

Hi - Looking for some feedback. Four years ago I purchased a condo in an HOA community. We bought it for relatives to live in.

Within two years of purchasing, the HOA Board put out a vote to disallow rentals and the vote passed. Owners with tenants could keep them but once they moved out, tenants other than family members were no longer allowed. There was no grandfather clause.

The tenant living there is planning to move.  Based on the change to the bylaws, I will be forced to sell.  In a normal real estate market, I probably would have just done a Section 1031 exchange and found another property.  However, in the current market, it's much harder to find properties.

I want explore my options including consulting an attorney and asking the HOA Board for an exemption from the bylaw to disallow rentals (I will be surprised if they agree). I'm curious if anybody else had a similar situation and how you handled it, legally or otherwise?