Can association rent one owner's carport to another owner?

Started by AllgemeinG • 6 replies • 1795 views

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AllgemeinG (California)
Posts: 7

Posted:

We are a condo association. There is a Unit-A, whose owner is old and very sick in the hospital. Thus, no one is taking care of the unit and no one is paying HOA fee since last year. Since no one is living in that unit, the carport is used by Unit-B owner.

I just got to know that the president charged Unit-B owner monthly $20 for renting Unit-A's carport. I am the treasurer and I didn't know this until I received a $20 check from Unit-B owner.

Firstly, I was surprised of this charge because none of the other board members knew about or agreed on this charge. I doubt whether the president has the right to "create" such charges. The association has never charged "carport rental" before.

Secondly, I doubt whether the association can rent Unit-A's carport to other owners. I think, though Unit-A has over $1000 past over dues, the association can't take over its carport and make money from it.

Please help me with this issue. Is it legal that the association rent Unit-A's carport to Unit-B owner?

Thank you very much.

GlenL (Ohio)
Posts: 5,491

Posted:

Legal is a question for the courts & lawyers, that is not what we do here. I would say it is at least improper depending on whether or not the carport is deeded to a specific unit or just assigned as a limited common area. I would get an opinion from the HOA attorney on whether it can be done or not. Either way I would credit the $20.00 towards the past due amount. Is there a lease for the carport? What happens when the unit is sold or foreclosed on?

Studies show that 5 out of 4 people have problems with fractions

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Here's a question for you.. Are the carports owned by the HOA and considered "Common property"? Are they part of your unit which you own? The HOA is responsible for maintaining the Common Property ONLY and controlling asthetics of individual units.

IMO this money is NOT the Associations but the OWNER's. The money could be considered "Income" and NOT fall under any kind of fines or dues payments. Which means some tax liability issues.

Overall, unless the carports are owned and maintained by the HOA this money should NOT be part of the HOA's funds. Plus you can NOT ignore the unpaid dues. It's like ignoring utility bills. It's best to start the process of contacting the family and putting a lien in place now. If the owner dies, his estate will go to Court and the lien would be part of any settlements. Otherwise the HOA will be OUT this money with no way to recover.

Former HOA President

SusanW1 (Michigan)
Posts: 5,202

Posted:

The president was wrong to enter into a "contract" with anyone without board approval.

AllgemeinG (California)
Posts: 7

Posted:

GlenL: Thank you for the comment. The carport is owned by each owner, though the "outside" structure is maintained by the association as "common area". The president didn't have a lease for the carport and he considered to credit the $20 towards the past due amount.

JanetB2 (Colorado)
Posts: 4,219

Posted:

This can get legal because you are renting and collecting money on someone else's property, unless permission is granted?

You may want to contact the family members, let them know you as a board understand that Mr. X has been very ill and you may have an idea to slightly help him and the family. Because of the amount of money owed to the HOA would it be OK for the board to rent the covered parking space to another unit owner for $xx amount per month and the money will be put towards back dues owed to sllightly help out financially. Have someone sign a letter or document where you have stated this idea and giving permission.

$20 per month seems very cheap for covered parking ... if the family agrees you might be able to get $50 per month for the space, depending on your area.

AllgemeinG (California)
Posts: 7

Posted:

Thank you all for giving very helpful comments!

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