1. Why we are looking at Emerald Lakes
Emerald Lakes is a planned community in Tunkhannock & Tobyhanna Townships, Monroe County, Pennsylvania, governed by Emerald Lakes Association, Inc. 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.
Emerald Lakes was created by a Declaration of Protective Covenants, Restrictions, Exceptions, Reservations and Conditions made as of June 2, 1975 by Unidel Corp., trading as Emerald Lakes. Its first paragraph provides that the premises “shall be used for residential purposes only” and that no building other than “one detached single-family dwelling” may be erected. Paragraph 9 limits use of the lakes and recreational areas to members in good standing and limits membership to “the purchasers of lots in this development and lessees of lot owners.” (Declaration ¶¶ 1, 9.)
In August 2026, owners filed a federal class action challenging the association’s rental fee program: Shelton v. Emerald Lakes Association, Inc., No. 3:26-cv-02320 (M.D. Pa.). The complaint alleges the program is not authorized by the declaration or the bylaws. The association has moved to dismiss, arguing that the declaration’s residential-use and membership provisions allow it to regulate rentals and that Chan is distinguishable. No court has ruled on the claims, and allegations in a complaint are not findings. Counsel of record for the plaintiffs is Perrong Law LLC.
Short-term rental policy: The association permits rentals but requires renting owners to enroll in its rental program, pay rental fees, and register rentals and guests, according to the class action complaint. In a March 27, 2026 email quoted in the complaint, the association said short-term rentals “continue to be a permitted and valued use within the community.” (Source: Class Action Complaint, Shelton v. Emerald Lakes Association, Inc., No. 3:26-cv-02320 (M.D. Pa.) (ECF No. 1).)
2. Does Emerald Lakes charge short-term rental fees?
Emerald Lakes charges owners who rent a tiered annual rental-plan fee of up to $2,500 plus a $250 annual rental registration fee, according to a pending federal class action complaint describing the association’s “Renting in Emerald Lakes” bulletin. The association defends the program as a valid exercise of its authority.
| Charge | Amount (as stated by source) | Applies to |
|---|---|---|
| Short-term rental plan, “Unlimited” tier | $2,500 per year | Short-term rentals |
| Short-term rental plan, “39” tier (27 to 39 rentals) | $2,000 per year | Short-term rentals |
| Short-term rental plan, “26” tier (up to 26 rentals) | $1,400 per year | Short-term rentals |
| Short-term rental plan, “12” plan (12 or fewer rentals) | $35 per rental | Short-term rentals |
| Annual rental registration fee | $250 per year | All renting owners |
| Long Term Rental Fee, stated to be for access to the association’s facilities and amenities | $600 per year | Long-term rentals (more than 30 days) |
| Fine for “Failure to Register Tenant” (Schedule of Fines) | $200 per offense | Renting owners |
Source: Class Action Complaint, Shelton v. Emerald Lakes Association, Inc., No. 3:26-cv-02320 (M.D. Pa.) (ECF No. 1) (U.S. District Court for the Middle District of Pennsylvania).
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.
Emerald Lakes Governing Documents
- Declaration / Covenants Declaration of Protective Covenants, Restrictions, Exceptions, Reservations and Conditions (1975) Recorded June 4, 1975. Monroe County Recorder of Deeds. Source: Copy filed as Exhibit A (ECF No. 11-4) in Shelton v. Emerald Lakes Ass’n, No. 3:26-cv-02320 (M.D. Pa.). Retrieved October 1, 2026.
Documents are listed for reference. We have not published an analysis of these provisions; the source documents control.
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 Emerald Lakes depends on what Emerald Lakes’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 Emerald Lakes 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 Emerald Lakes imposes it, or that it is unlawful. The declaration controls the analysis.
Sources for this page
- Class Action Complaint, Shelton v. Emerald Lakes Association, Inc., No. 3:26-cv-02320 (M.D. Pa.) (ECF No. 1) — U.S. District Court for the Middle District of Pennsylvania, August 12, 2026 (retrieved October 1, 2026). Court filing.
- Brief in Support of Defendant Emerald Lakes Association, Inc.’s Motion to Dismiss, Shelton v. Emerald Lakes Association, Inc., No. 3:26-cv-02320 (M.D. Pa.) (ECF No. 11) — U.S. District Court for the Middle District of Pennsylvania, September 17, 2026 (retrieved October 1, 2026). Court filing.
- Declaration of Protective Covenants, Restrictions, Exceptions, Reservations and Conditions (1975), filed as Exhibit A (ECF No. 11-4) — Public court file, M.D. Pa. No. 3:26-cv-02320, effective June 2, 1975 (retrieved October 1, 2026). Court filing.