Can common areas be used extensively by nonresidents; and can owners charge for the use of common areas?
No in both cases. Common areas cannot be used extensively by nonresidents, and must be used primarily by residents. Owners cannot charge for the use of common areas, but can charge for services provided in common areas. However, if the common area qualifies as a community service facility, then the area can be used extensively by nonresidents; and owners can charge for the use of the area. Community Service Facility Internal Revenue Code (IRC) 42(d)(4)(C) outlines the requirements of a community service facility. For amounts to be included in the eligible basis for the purpose of providing a community service facility, the area must meet the following requirements: 1. The facility must be in a qualified census tract (QCT); 2. The facility must be used to provide services that will improve the quality of life for the community residents whose income is 60 percent or less of the area median income (AMI); and 3. The facilitys adjusted basis may not exceed 10 percent of the eligible basis
