Most programs require homeowners to occupy the unit as their primary residence. This is often defined as living in the unit most of the year. For example, many jurisdictions have a clause such as “The Owner shall be considered as occupying the Home if the Owner is living in the unit for at least ten (10) months out of each calendar year.”
Programs typically allow homeowners to request permission to rent their homes for limited periods of time if they meet certain conditions. For example, the homeowner could receive this permission if she:
- Temporarily relocates to attend school
- Has been called for military service
- Has experienced temporary financial hardship
- Wants to volunteer, travel, or work at another location for an extended period of time
- Needs to seek specialized medical care for an extended period of time
- Is not able to sell the home at the restricted price after a good faith marketing effort of more than a certain number of days (e.g., 180 days)
Many programs let homeowners rent a bedroom in their home without receiving any permission from the jurisdiction. Other programs allow homeowners to rent their homes for any reason, but for a short duration. In this case, it is still important for programs to have a form for owners to fill out so they can track who is living in the house.
Additionally, some jurisdictions have set limits on the rental price to ensure affordability and prevent any windfall for the owner. This is more common in very high-cost communities or resort locations where potential windfalls are quite large. In other communities, allowing homeowners who meet the exception criteria to possibly earn some modest windfall might be preferable to the administrative burden of verifying that sublease rents are affordable.
Finally, some programs have different standards depending on how long a homeowner has lived in a home. For example, a new homeowner might not be allowed to rent out their home at all, but a long-term resident might be given more latitude.
