The simple answer to the complex problem is no. Your Board does not have the legal authority to restrict leasing. But your Association can adopt such a restriction, although it is not easy.

In any condominium association, there is what we call the "hierarchy of the power source". In order to determine what a Board can -- and cannot do -- we must first look to the operating statute in the jurisdiction where your condominium is located.  Checking to determine if there are any restrictions set by your State is the first step to consider in this process.

The next level power source in a condominium is the Master Deed/Declaration. The Master Deed/Declaration spells out certain basic concepts of the condominium, such as a definition of common and limited common elements, rights of mortgage lenders who have outstanding loans to unit owners, and the percentage interest which each unit has in the entire project.

The third level power source are the Bylaws of the Association. The Bylaws cover such matters as the composition of the Board of Directors, the obligations of the owners to pay assessments, voting rights and responsibilities, and insurance issues.

Finally, the last source to review is the rules and regulations of the Association. The Board of Directors has the authority to prepare and adopt Rules, which can include such areas as pet restrictions, assessment collection policies, swimming pool procedures, and garbage and trash collection requirements. According to all experts in condominium law, the Board can adopt any rule or regulation so long as it is not in conflict with a higher power source, such as the Bylaws. Since your Bylaws allow leasing of units, the Board could not enact a resolution contrary to that position.

Leasing of condominium units is a major problem facing many condominium associations today. The "secondary mortgage market" -- where organizations such as Fannie Mae and Freddie Mac buy loans originated locally -- is a primary source of mortgage money for condominium loans, both for purchases as well as refinances. These secondary mortgage lenders impose restrictions on the number of investor units in a condominium association.  If an association exceeds these limitations, it becomes difficult for potential purchasers and/or unit owners wishing to refinance to obtain mortgage financing.

Condominium Associations throughout the country have wrestled with this issue, and have come up with a number of potential solutions, including:

•               An absolute leasing prohibition.

•               Prohibiting existing owners (whether they be investors or not) from selling their unit to investors.

•               Establishing a percentage of units within the Association which can be rented at any particular time -- i.e., 40 percent.

•               Permitting leasing for a fixed period of time (i.e., two years), after which the unit must be owner-occupied for at least another two years.

There are, of course, variations on these proposals; perhaps one of the most common is to include a "grandfather" clause in the Bylaw amendment, which would either (1) completely exempt current owners from these restrictions or (2) establish a grace period, after which time the restrictions would then be applicable to all owners.

But, in my opinion, this is a matter which cannot be accomplished by a Resolution adopted by the Board. It requires at least a Bylaw amendment, and to be on the safe side, it should really be an amendment to the Declaration.

In order to amend the Bylaws or the Declaration of a condominium association, it generally takes a two-third vote of all the owners. If your association already has more than 40 percent investor owners in your complex, you are urged to start the amendment process now -- and grandfather in those owners who are currently renting. Grandfathering is not a legal concept, but a political reality. If you want to muster sufficient votes to amend your legal documents, you have to make concessions to those owners who currently rent their apartments, and will be directly impacted by any such amendment.

However, since this is a highly emotional issue, you and your Board should begin to educate the owners as to the problems of having too many renters within your complex. Perhaps your committee should hold an informational meeting first, to discuss the various issues and to listen -- and learn -- what the owners want.

All owners, including investors, should realize that if there are too many renters, the condominium may take on the appearance of an apartment complex, which may cause all units to depreciate in value.

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There will be strong opposition to any restrictions, and factions will develop within your association. To the extent possible, you should try to avoid creating internal dissent, and an educational campaign will go a long way toward keeping the peace. The worst way to approach this subject is for the Board of Directors to suddenly announce that there will be a vote to amend the Bylaws (or the Declaration) without giving everyone ample opportunity to express their views.

After all, since your Association is supposed to be a democracy, your Board should heed the will of the majority