Sunil V. Lalla and Sharon W. Lalla (collectively, the Lallas), co-owners of a unit in a horizontal property regime known as The SPUR at Williams Brice Stadium (The SPUR), appeal the circuit court’s order allowing The SPUR to enforce a restrictive covenant prohibiting the Lallas from renting their unit to any student currently enrolled in a two or four-year college. The Lallas argue the restriction has no reasonable basis and discriminates against a specific class of individuals. The Lallas further argue the circuit court erred in failing to hold the restrictive covenant null and void. We affirm.
FACTS AND PROCEDURAL HISTORY
The SPUR is a horizontal property regime consisting of real property, condominiums, and general limited common areas. The SPUR was created by master deed dated September 19, 2006 (Master Deed). The SPUR at Williams Brice Owners Association, Inc. (the Association) is a nonprofit corporation that exists for the sole purpose of administering The SPUR and enforcing The SPUR’s Master Deed and bylaws pursuant to the South Carolina Horizontal Property Act.
The rental of any unit to any student currently enrolled in a two (2) or four (4) year college, institute, or university is strictly prohibited. Additionally, any tenant of any Unit shall be prohibited from having any roommate that is enrolled in a two (2) or four (4) year college, institute, or university. Any tenant in violation of this Restriction shall have their lease automatically terminated, and shall have thirty (30) days to vacate the Unit.2
In 2007, the Lallas purchased a three-bedroom condominium at The SPUR (Unit 101) for $470,000. Sunil Lalla explained by affidavit that he “purchased the condo to enjoy football games at USC.” When the Lallas purchased the unit, their daughter was considering attending college at the University of South Carolina. The Lallas intended for their daughter and two roommates to occupy Unit 101 during their college years and planned to receive rental payments from their daughter’s roommates.
In 2008,
During the summer of 2010, the Lallas notified the Association of their decision to rent to college students and began doing so. The Association’s board meeting minutes from June 3, 2010, indicate the following:
Management brought to the attention of the Board a comment form completed by an owner. The comment card stated that the Association is allowing the condominium to turn into a dormitory____ After discussing the comment card [with] the Board[,] a motion was made to consult with [the] drafters of the Master Deeds as it pertains to rentals. The motion was made to clarify the parameters of student rentals with the attorney — find out if a moratorium for students to rent can be placed immediately; motion was carried unanimously.
The February 11, 2011 board meeting minutes state that “[a] letter was presented to the [b]oard from an attorney on behalf of Unit # 111[
On October 10, 2011, the Association filed this declaratory judgment action seeking interpretation and enforcement of the Master Deed and bylaws. Specifically, the Association asked that the circuit court find the Lallas were “in violation of the Master Deed by renting to a student or students and should be enjoined from doing so now or in the future.” The Association further sought an award of “costs and fees pursuant to [section 15-53-100 of the South Carolina Code (2005) ] and Section XXIIIC of the Master Deed.”
The Lallas answered and counterclaimed, seeking a declaration that the restrictive covenant was null and void due to changed circumstances. The parties agreed to have the circuit court rule on the outstanding issues without testimony. The circuit court’s order demonstrates that the parties had a “full opportunity” to create a record, present evidence through stipulated facts and affidavits, and present arguments through briefs.
The circuit court granted the Association’s request for declaratory relief, ruling that “[w]hen the [Lallas] purchased Unit 101, they became subject to the provisions of the Master Deed and [b]ylaws.” The Lallas appealed, asserting that the
Finally, the Lallas contend the court erred in ruling their affirmative defense of waiver inapplicable and in enjoining the Lallas from continuing to rent Unit 101 to their current tenants.
STANDARD OF REVIEW
“Declaratory judgment actions are neither legal nor equitable and, therefore, the standard of review depends on the nature of the underlying issues.” Judy v. Martin,
I. Restrictive Covenant
The Lallas argue the circuit court erred in determining that they failed to meet their burden of establishing that the restrictive covenant is unreasonable and unenforceable. We disagree.
“Restrictive covenants, sometimes referred to as ‘real covenants,’ are agreements ‘to do, or refrain from doing, certain things with respect to real property.’ ” Kinard v. Richardson,
The law governing the enforceability of covenants restricting the use of real property is well-established in South Carolina. “A restriction on the use of the property must be created in express terms or by plain and unmistakable implication, and all such restrictions are to be strictly construed, with all doubts resolved in favor of the free use of property.” Buffington v. T.O.E. Enters.,
In their answer, the Lallas admit they own a unit in The SPUR, and that they are subject to the provisions of the Master Deed and bylaws. Under article VIII of the Master Deed, “every Condominium ... is hereby ... subject to the restrictions, easements, conditions, and covenants prescribed and established herein.” Furthermore, the bylaws established by the Association provide that “[a]ll present or future co-owners ... are subject to the regulations set forth in these [bylaws] and in said Master Deed.” Under the South Carolina Horizontal Property Act, “[e]ach co-owner shall comply strictly with the bylaws ... and with the covenants, conditions and restrictions set forth in the master deed.” S.C.Code Ann. § 27-31-170 (2007). In reviewing the Lallas’ admissions, The SPUR’s Master Deed, the Association’s bylaws, the pertinent statutes, and the circuit court’s order, we find no error in the circuit court’s ruling that “when the [Lallas] became owners of a unit in [The SPUR], they voluntarily and intentionally bound themselves by the restrictive covenants barring the rental of any unit to college students who are unrelated to the unit’s owner.” Accordingly, we affirm the circuit court’s ruling that the rental ban provision of the restrictive covenant is binding upon the Lallas.
II. The Lallas’ Affirmative Defenses
Upon the Association’s showing that the restrictive covenant was binding on the Lallas, the Lallas bore the burden of asserting affirmative defenses to the restrictive covenant’s enforceability. See Circle Square Co. v. Atlantis Dev. Co.,
On appeal, the Lallas argue the circuit court erred in failing to find the restrictive covenant unenforceable because it is unreasonable. We disagree.
Part of the Lallas’ argument on this point is that “[t]his class of currently enrolled college students is indistinguishable from college students who are children and grandchildren of owners or their roommates. This class is indistinguishable from college students who are condo owners.” It does not appear that the circuit court addressed this particular “reasonableness” argument. See Staubes v. City of Folly Beach,
The Lallas argue the rental restriction is impermissibly discriminatory and violates the Equal Protection Clauses of article I, section 3 of the South Carolina Constitution and the Fourteenth Amendment of the United States Constitution. We disagree.
Article I, section 3 of the South Carolina Constitution provides, in pertinent part, that no person shall “be deprived of life, liberty, or property without due process of law, nor shall any person be denied the equal protection of the laws.” S.C. Const, art. I, § 3; see also Sunset Cay, LLC v. City of Folly Beach,
“To satisfy the equal protection clause, a classification must (1) bear a reasonable relation to the purpose sought to be achieved, (2) members of the class must be treated alike under similar circumstances, and (3) the classification must
An inherently suspect classification is one whose members have faced a long history of discrimination, see Palmore v. Sidoti,
A classification bears a rational relationship to its purpose as long as there is some evidence that it will further a legitimate purpose. See Nordlinger v. Hahn,
A classification may withstand rational basis review even if it is underinclusive or overinclusive, so long as the classification is not arbitrary. See Ry. Express Agency v. New York,
The purpose of the restrictive covenant’s classification in this case is to ensure the comfort and safety of The SPUR’s residents and protect the investments of property owners by minimizing the risk of creating a dormitory-like atmosphere at the complex. The rental prohibition is rationally related to its purpose because it bars from the pool of possible renters a population that the Association alleges has a tendency to engage in certain behaviors dangerous to themselves and disruptive to those around them. The fact that some potential renters barred by the college student prohibition might not be disruptive or disorderly does not render the classification itself
Accordingly, we affirm the circuit court’s well-reasoned opinion that the restrictive covenant satisfies both the federal and state equal protection clauses because it is “rationally related to maintaining the safety, comfort, and investment of owners.”
C. Fair Housing Protections
The Lallas further argue that the circuit court erred in enforcing the Association’s rental restriction because it is unreasonable, discriminatory, and seeks to prohibit an ordinary class of people from access to housing accommodations in violation of state and federal law. We disagree.
The federal Fair Housing Act and South Carolina Fair Housing Law prohibit discrimination in the rental of a dwelling based upon a person’s race, color, religion, sex, familial status, or national origin. See S.C.Code Ann. § 31-21-40 (2007); 42 U.S.C. § 3604 (2012). Within both statutes, “ ‘familial status’ means one or more individuals (who have not attained the age of eighteen years) being domiciled with — (1) a parent or another person having legal custody of such individual or individuals; or (2) the designee of such parent or other person having such custody....” 42 U.S.C. § 3602(k) (2012); see S.C.Code Ann. § 31-21-30(6)(a) (2007).
Here, the rental restriction is wholly unrelated to any classification protected by state and federal housing laws. See, e.g., Tufano v. One Toms Point Lane Corp.,
The Lallas argue the circuit court erred in failing to hold the Association’s restrictions null and void as the change in economic conditions, specifically the decline in the real estate market following their purchase of the Unit, renders enforcement of the restrictions unreasonable. We disagree.
“Under South Carolina law, a party may bring a declaratory judgment action to invalidate a restrictive covenant based on a change of conditions.” Menne,
In Buffington, our supreme court reviewed an order enjoining the operators of a Toyota dealership from using their real property — located across from the dealership and within a subdivision — for commercial purposes.
In this case, the purpose of the restrictive covenant is to ensure the safety of The SPUR’s residents as well as the value of the unit owners’ investments. The units’ decrease in value due to the declining real estate market and economy had no effect on the Association’s need to minimize the risk that The SPUR might develop a dormitory-like atmosphere. Like the dealership operators in Buffington, when the Lallas purchased their unit, they were on notice (by way of the Master Deed) of the restrictive covenant prohibiting the rental of any unit to college students unrelated to the unit’s owner. Accordingly, we agree with the circuit court that the economic change in conditions alleged by the Lallas fails to support the discharge of the restrictive covenant.
E. Waiver
The Lallas argue the circuit court erred in ruling that the affirmative defense of waiver was unavailable in this case. We disagree.
“Waiver is a voluntary and intentional abandonment or relinquishment of a known right. It may be expressed or implied by a party’s conduct, and it may be applied to bar a party from relying on a statute of limitations defense.” Parker v. Parker,
III. Injunction
In their reply brief, the Lallas argue the circuit court erred in enjoining them from continuing to rent their unit to their current tenants. We find this argument is not properly before the court. See Glasscock, Inc. v. U.S. Fid. & Guar. Co.,
CONCLUSION
The circuit court properly held the rental prohibition of Article XIV of the Master Deed and Restrictive Covenant to be valid and enforceable. The circuit court’s enjoining of the Lallas from renting, or continuing to rent, their unit in violation of the restrictive covenant was likewise proper. Accordingly, the ruling of the circuit court is
AFFIRMED.
Notes
. S.C.Code Ann. §§ 27-31-10 to -440 (2007 & Supp.2014).
. Article XVI further provides:
However, any owner or owners may allow their child or grandchild to reside in, or rent, the Unit that they own, even if that child or grandchild is currently enrolled in a two (2) or four (4) year college, institute, or university. Additionally, the child or grandchild of any owner or owners who reside in, or rent out, their parentsf] orgrandparentsf] Unit shall be entitled to have one (1) roommate who is also currently enrolled in a two (2) or four (4) year college, institute, or university. Nothing contained herein shall prevent a person ... who is enrolled in a two (2) or four (4) year college, institute, or university, from purchasing a Unit or becoming an owner thereof.
. During the summer of 2008, the Association adopted a set of rules and regulations that was distributed to each property owner at The SPUR.
. This is not the unit at issue in this dispute.
. In Dunes W. Golf Club, LLC v. Town of Mount Pleasant, our supreme court clarified that "the equal protection clause does not prohibit different treatment of people in different circumstances under the law.”
. "The general rule, well established in South Carolina, is that courts will not enforce a contract when the subject matter of the contract or an act required for performance violates public policy as expressed in constitutional provisions, statutory law, or judicial decisions.” White v. J.M. Brown Amusement Co.,
. See United States Fair Housing Act, 42 U.S.C. §§ 3601-3631; South Carolina Fair Housing Law, S.C.Code Ann. §§ 31-21-10 to -150 (2007 & Supp.2014).
