ENGLEWOOD, Colo. - At Peoria Place, a 120-home development under construction in Englewood, Richmond American Homes is offering new features for homeowners, including a new clause in the HOA covenant that could be a new home trend.
The HOA will limit rentals to 15 percent of homes in the development, and only if the renters have with two-year leases and are approved by the HOA.
"I was shocked," said Shelley Wang, who signed a contract for one of the homes in March, but cancelled when she got the HOA covenant last month. "It is too much trouble."
Some realtors and would-be homebuyers are frustrated and predict it could actually lower the value of the homes if people fall on hard times and go into foreclosure instead of renting.
"I have three clients who were seriously considering buying there, but they have all decided not to." said Realtor Cindy Liao, who is also buying a home at Peoria Place as an investment property until she and her husband can move there in a couple of years. "We are just hoping we will be in the 15 percent that can rent the home."
However, at the sales office in the new development, Edmund Aguilera with Richmond American Homes said the company is trying to protect home values.
"Many people see it as an asset," said Aguilera, who said it is possible rental restrictions may be included in other HOA covenants in the future, on a neighborhood-by-neighborhood basis. "We only had two people decide not to continue their contracts, but the neighborhood is a huge success."