If the units in a common-interest community are restricted to residential use, is transient commercial use automatically prohibited?
“Transient commercial use” means the use of a unit for payment as a hostel, hotel, inn, motel, resort, vacation rental or other form of transient lodging for less than 30 consecutive calendar days.
Units within a planned community that are restricted to residential use by the declaration MAY be used for transient commercial use only if:
- the governing documents of the association and any master association do not prohibit such use;
- the executive board of the association and any master association approve the transient commercial use of the unit, except that such approval is not required if the planned community and one or more hotels are subject to the governing documents of a master association and those governing documents do not prohibit such use; AND
- the unit is properly zoned for the transient commercial use, and any license required by the local government for the transient commercial use is obtained.
The association may establish requirements regarding this use, including the payment of additional fees necessary to cover costs of allowing the use.