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Writer's pictureKelly Frey

Non-Incidental Business Arrangement – PART 3

Updated: May 9, 2023

Projects with non-incidental business operations owned or operated by the HOA, such as a restaurant, spa or health club


Litigation

Projects in which the HOA is named as a party to pending litigation or for which the project developer is named as a party to pending litigation that relates to the safety, soundness or functional use of the project


Single Entity Ownership

Projects in which a single entity (individual, investor group, partnership or corporation) owns more than the following total number of units in the project:

• Projects with 5-20 units – 2 units

• Projects with 21 or more units – 20%


Nonresidential/Commercial Space

The total space that is used for nonresidential or commercial purposes may not exceed 35%



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