The Palomino subdivision would become a build-to-rent community under a revised development agreement the Aubrey City Council takes up Thursday night, according to a staff report in the meeting packet.
Arrow Capital Management of Greenwood Village, Colorado, has contracted with Lennar Homes to buy all of the developed residential lots in Palomino, the report says. That purchase would turn what was planned as a neighborhood of individually owned single-family homes into one where the houses are built to be rented.
The council is being asked to approve a second amended and restated development agreement with Lennar Homes of Texas Land and Construction to account for the change. Staff recommends approval.
Rules for renters and the owner
Most of the agreement deals with how the community would be run. Under the terms summarized in the staff report:
- Leases would have to run at least six months. Short-term rentals of less than 30 days and rent-by-the-room arrangements would be prohibited.
- Size would be capped at 300 lots, with no more than one home on each, and every home would stay on its own platted lot through an amended concept plan and a replat.
- One association would govern every lot sold to build-to-rent buyers, replacing any separate neighborhood association, with a single management company for the whole community.
- Maintenance would fall to that property owners association, with set timelines for exterior repainting, roof repairs and fence work, inspections when tenants change and at least once a year, and weekly mowing from March through October.
- Parking on the street would be limited to one vehicle per home, with a guest lot providing one space for every 10 homes and at least 30 off-street spaces overall.
- Storage outside would be limited to items such as patio furniture, grills and bicycles in fenced back yards. Boats, trailers, RVs, inoperable vehicles and building materials could not be kept anywhere in the community.
The amendment also adds nuisance rules covering amplified noise, off-leash pets outside fenced areas, trash and pet waste, smoke and fumes, and outdoor burning. Deed restrictions required by the city would be recorded on every lot and could not be changed without the city's consent.
Amenities, inspections and a city contact
The owners association would own a private amenity center with at least a swimming pool and community room. Construction would have to start within a year of the signed agreement or before the 50th home, whichever comes first, and finish within 12 months.
