Does Short Term Rental Violate HOA Rules?

This case involved a dispute between the owner of two townhomes (“Owner”) located within a townhome community governed by a community association (“Association”) over Owner’s right to rent its units “for short term hotel, vacation rental, and/or transient use.” Association contended that Owner’s short-term rentals of the units was in violation of Association’s CC&Rs requirements that the units be used for single-family residential use.