(2) Subject to the provisions of subsections (d) and (e)(1) of this section,
the operation of a family day care home or no-impact home-based business shall be:

(i) Considered a residential activity; and

(ii) A permitted activity.

(d) (1) (i) [Subject] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF
THIS PARAGRAPH AND SUBJECT to the provisions of paragraphs (2) and (3) of this
subsection, a homeowners association may include in its declaration, bylaws, or
recorded covenants and restrictions a provision expressly prohibiting the use of a
residence as a family day care home or no-impact home-based business.

(II) A HOMEOWNERS ASSOCIATION MAY NOT INCLUDE A
PROVISION DESCRIBED UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH EXPRESSLY
PROHIBITING THE USE OF A RESIDENCE AS A FAMILY DAY CARE HOME IN ITS
DECLARATION, BYLAWS, OR RECORDED COVENANTS AND RESTRICTIONS UNTIL THE
LOT OWNERS, OTHER THAN THE DEVELOPER, HAVE 90% OF THE VOTES IN THE
HOMEOWNERS ASSOCIATION.

[(ii)](III) A provision described under subparagraph (i) of this
paragraph expressly prohibiting the use of a residence as a family day care home or
no-impact home-based business shall apply to an existing family day care home or
no-impact home-based business in the homeowners association.

(2) A provision described under paragraph (l)(i) of this subsection
expressly prohibiting the use of a residence as a family day care home or no-impact
home-based business may not be enforced unless it is approved by a simple majority
of the total eligible voters of the homeowners association, NOT INCLUDING THE
DEVELOPER, under the voting procedures contained in the declaration or bylaws of
the homeowners association.

(3) If a homeowners association includes in its declaration, bylaws, or
recorded covenants and restrictions a provision prohibiting the use of a residence as a
family day care home or no-impact home-based business, it shall also include a
provision stating that the prohibition may be eliminated and family day care homes
or no-impact home-based businesses may be approved by a simple majority of the
total eligible voters of the homeowners association under the voting procedures
contained in the declaration or bylaws of the homeowners association.

(4) If a homeowners association includes in its declaration, bylaws, or
recorded covenants and restrictions a provision expressly prohibiting the use of a
residence as a family day care home or no-impact home-based business, the
prohibition may be eliminated and family day care or no-impact home-based
business activities may be permitted by the approval of a simple majority of the total
eligible voters of the homeowners association under the voting procedures contained
in the declaration or bylaws of the homeowners association.

(e) A homeowners association may include in its declaration, bylaws, rules, or
recorded covenants and restrictions a provision that:

(1) Regulates the number or percentage of family day care homes