1. Why we are looking at Arrowhead Lake
Arrowhead Lake is a planned community in Tobyhanna & Coolbaugh Townships, Monroe County, Pennsylvania, governed by Arrowhead Lake Community Association. Like most Poconos lake and resort communities, it has a property owners’ association that collects assessments and adopts rules—and, in many communities, rules about renting. Those rules are only as strong as the authority behind them in the recorded governing documents.
Arrowhead Lake is a private community of approximately 2,466 lots in Tobyhanna and Coolbaugh Townships, first developed by All-American Realty Co. beginning in the 1960s. Depending on the chain of title, lots are governed by restrictive covenants in individual deeds or by a 1984 Declaration of Covenants attached to a Declaration of Easement recorded in Monroe County at Deed Book 1382, page 268.
Unlike the declaration in Chan, Arrowhead’s covenants state that lots are “reserved and used for single-family residential purposes exclusively,” require approval for membership before occupancy, and provide for association rules, approvals, and charges for the use of beaches and recreational areas. On February 5, 2026, the Monroe County Court of Common Pleas relied on that language to hold the association’s short-term rental policy enforceable without amending the covenants. Reilly v. Arrowhead Lake Community Association, No. 8215-CV-2022 (C.P. Monroe Cnty.). That decision is on appeal to the Commonwealth Court (No. 314 C.D. 2026), and the outcome may matter to every Arrowhead owner who rents. We would still like to hear from Arrowhead owners about the charges they pay.
Short-term rental policy: The association’s Board adopted a short-term rental policy effective January 1, 2023, and a slightly revised policy on or about April 15, 2024. A Monroe County court held the policy enforceable in February 2026; that ruling is on appeal. (Source: Opinion and Order, Reilly v. Arrowhead Lake Community Association, No. 8215-CV-2022 (C.P. Monroe Cnty. Feb. 5, 2026).)
2. Does Arrowhead Lake charge short-term rental fees?
Arrowhead Lake charges owners who rent short-term additional fees under its short-term rental policy, beyond the annual assessment. A Monroe County court upheld the policy in February 2026, and that ruling is on appeal. We have not verified the current fee amounts.
| Charge | Amount (as stated by source) | Applies to |
|---|---|---|
| Fees under the association’s short-term rental policy, in addition to the annual assessment (the court opinion does not state the amounts) Effective January 1, 2023 | Not stated | Short-term rentals |
Source: Opinion and Order, Reilly v. Arrowhead Lake Community Association, No. 8215-CV-2022 (C.P. Monroe Cnty. Feb. 5, 2026) (Court of Common Pleas of Monroe County).
Fee information last checked October 1, 2026. Fee schedules change; tell us if yours is different.
Whether that charge is legally enforceable depends in part on the recorded governing documents. If you pay it because you rent, we will review the declaration and the charge for free.
Have the Arrowhead Lake Declaration or Covenants?
Send us the HOA name and tell us about the fee. We are happy to review the governing documents and evaluate the STR charge FOR FREE.
Don’t have them? Submit the HOA name anyway. Declarations are usually recorded with the county recorder of deeds, and the association’s resale packet or member portal often includes them.
3. Why the recorded declaration matters
A planned community declaration is treated as a contract between the association and its members. Rules and bylaws adopted later do not override it: under Pennsylvania’s Uniform Planned Community Act, if the declaration and the bylaws conflict, the declaration prevails (68 Pa.C.S. § 5203(c)).
In Chan, the Commonwealth Court held that a bylaw amendment regulating short-term rentals—including enrollment and annual fees—was void and unenforceable because “authorization for such regulation is not provided in the Declaration.” Whether the same is true at Arrowhead Lake depends on what Arrowhead Lake’s own declaration and amendments say. Some declarations do give associations authority over rentals; courts look at the specific language.
4. Short-term rentals and residential use
Associations sometimes argue that renting is a “commercial” use. In Ruffed Grouse Ridge, the Commonwealth Court held that renting a home to private parties—short-term or long-term—did not violate a covenant limiting use to “private residential purposes only,” so long as the renters used it for residential purposes. The court focused on how renters actually use the home, not on how long they stay. The result for any community still turns on its own covenant language.
5. What types of charges should Arrowhead Lake owners send us?
- Annual STR permit fees — A yearly charge to be allowed to rent short-term.
- Annual rental assessments — An extra assessment billed only to owners who rent.
- Per-rental or per-stay charges — A charge every time a guest checks in.
- Renter-registration fees — Fees to register a tenant or rental with the association.
- Guest-registration charges — Charges tied to registering renters as guests.
- Mandatory STR amenity charges — Amenity, beach, or facility fees imposed because the home is rented.
- Rental inspection fees — Inspections required only of rented homes.
- Special security charges — Security fees billed to renting owners.
- Rental-processing fees — Administrative or “processing” charges for rentals.
- Badges, wristbands, or passes — Passes required only because a property is rented.
- Other rental-triggered fees — Anything you are charged because you rent short-term.
Listing a charge here is not a claim that Arrowhead Lake imposes it, or that it is unlawful. The declaration controls the analysis.
Sources for this page
- Opinion and Order, Reilly v. Arrowhead Lake Community Association, No. 8215-CV-2022 (C.P. Monroe Cnty. Feb. 5, 2026) — Court of Common Pleas of Monroe County, February 5, 2026 (retrieved October 1, 2026). Court record.
- Brief in Support of Motion to Dismiss, Shelton v. Emerald Lakes Association, Inc., No. 3:26-cv-02320 (M.D. Pa.) (ECF No. 11), at 19 n.5 (reporting Reilly appeal pending at No. 314 C.D. 2026) — U.S. District Court for the Middle District of Pennsylvania, September 17, 2026 (retrieved October 1, 2026). Court filing.