Should renting ADU counts towards HOA rental cap if Owner is living in the house

[Remi Sahai]

I bought my home intending to create an ADU and rent it to meet my financial needs. My builder provided me with all the hookups. The lower floor came with a bedroom, full bath, storage, patio, and a large bonus room. I added a kitchen in the bonus room and a laundry in the storage room. I acquired the permit from the county. I was able to rent it till now, until the rental cap was met, and the HOA is stopping me from renting it out. Should my ADU rental count towards the HOA rental cap since I live here? CC&Rs do have a rental cap, but they don't have anything mentioned about ADUs. I'm forced to sell my house, and it is adversely affecting my finances. What are my options? Can I fight the HOA?

[Dan H.]

Quote from @Remi Sahai:

I bought my home intending to create an ADU and rent it to meet my financial needs. My builder provided me with all the hookups. The lower floor came with a bedroom, full bath, storage, patio, and a large bonus room. I added a kitchen in the bonus room and a laundry in the storage room. I acquired the permit from the county. I was able to rent it till now, until the rental cap was met, and the HOA is stopping me from renting it out. Should my ADU rental count towards the HOA rental cap since I live here? CC&Rs do have a rental cap, but they don't have anything mentioned about ADUs. I'm forced to sell my house, and it is adversely affecting my finances. What are my options? Can I fight the HOA?

Typically rental caps effect the rentals that would put it over the cap and the existing rentals are under the cap.  Is this not the case with this HOA?

I placed an offer 2 weeks ago with a single contingency on HOA.  I could not get all HOA docs prior to offer and feared things like not being able to rent it, long rehab approval times (I have seen many CCRs state HOA can take up to 6 months to approve any changes), and coming special assessments.  

HOAs can kill an RE investment.   It is imperative to know everything about their rules, their reserves, coming special assessments, etc.

i personally believe if you are going to attempt to fight the HOA on your own it will not be worth the cost.  Note satellite providers took up the battle a couple/few decades ago locally and got all satellite bans removed.   So it is possible, but it will not be cheap.  

note CA has new law that limits HOA fines.  If your jurisdiction has a similar low limit, maybe consider paying the fine.
https://mbkchapman.com/blog/california-hoa-fine-limits-ab-13...

good luck