HOA Phoenix - Renters

Situation: we have renters in the community who have violated most of the CC&R's and guidelines
- business in garage, 24/7
- parking overnight on private streets
- trash cans stored in yard
- and it goes on

Our problem:
- our HOA has no rules or guidelines for renters or homeowners who rent
- our management company will not send renters violation letters only HO's
- the above-mentioned property owner lives in Floria

We are looking for some established guidelines which we could incorporate into our guidelines. Any suggestions?

Thanks

Luci,

You don't need to adopt a rule to send a violation notice; I'm sure that's all outlined in your CCRs. The notice is sent to the property owner. It's up to him to inform his renter that he is violating a CCR restriction.

I would suggest the board adopt a renter's policy. The policy would outline what resp. the owner has to the assn when renting his property. Among other things, the policy should state the prop. owner:

1) must inform the board when the prop is being rented
2) must provide the board with property owner's current address
3) must provide the renter with a copy of the CCRs and the rules
4) remind the property owner that he is resp. for any violations committed by the renter including any fines levied if the violations are not cured
5) cannot rent his property for less than six-months, one-year (whatever board deems best)

In AZ a property owner who rents his property must inform the Co assessor. Rental properties are assessed at a much higher rate than owner-occupied properties. In Glendale a property owner who rents his property is required to obtain a business license also. Other cities in the state may have similar requirements.

The fact that he lives out of state does not remove him from any liability to abide by the CCRs. He may not be ignoring the violation letters, instead his tenant may be ignoring him! If he is disregarding fines being imposed, the assn can place a lien. If he isn't being fined, I would ask "Why not?". Whatever the situation, the board needs to have a talk with their attorney!

Luci,

I believe you're a bit confused. FORECLOSURE cannot be used to collect unpaid fines, only delinquent assessments. The assn can place a lien for unpaid fines; then obtain a judgment but can only collect when the property is sold.

You are absolutely right. Enforcing covenants can be a lengthy, time consuming, expensive process when you have to go to court.

Now, if the bobcat and trailer show up, you will have to go back to court for a contempt citation and a bench warrant. If the owner lives out of state, the arrest warrant will likely not be exercised unless she returns to Idaho, or if she gets stopped for a traffic violation and the officer runs a check on her.

Would not it be sensible to include the renter as a defendant in the court case? Most covenants that I am familiar with have a section that requires renters to abide by the rules and covenants as well. Indeed, the covenants are often incorporated into the lease.

Small things escalate into big things when the only recourse you have is adjudication in the court system.

Luci,

Here's a direct quote from the current law:

"The associations lien for monies other than for assessments, for charges for late payment of those assessments, for reasonable collection fees and for reasonable attorney fees and costs incurred with respect to those assessments may not be foreclosed and is effective only on conveyance of any itnerest in the real property." Note the beginning of this statement: "lien for monies other than assessments", which includes fines for CCR violations. I know of no bill that passed this session to change this statute. Where did you get the info on this "New Arizona Community Association Legislation"? Can you give me the bill number and the applicable statute?

Thx, Tony. And HB2523 isn't even an HOA specific bill. It was not a very good year for HOA reform! IMO, HB2440 (political petitions) was utterly meaningless -- a wasted effort. Other than a gated community, how can most HOAs really prohibit anyone from taking around a petition? And HB2726 only applies to condos built b/4 1986. I'm on a number of HOA forums and I don't recall anyone ever complaining that the current HOA statutes did not apply to their condo because it was built prior to 1986. Having said that, I see nothing wrong with this law; just that it wasn't a very pressing issue.