Renters being assessed for their landlords past due assessments

Our HOA is attempting to pass a rule that would require a renter to send their lease payment to the HOA, instead of to their landlord, if their landlord hasn't paid their HOA assessments to the HOA. The HOA would take the assessment amount from the renters lease payment and send the balance to the landlord, minus any collection costs (not to exceed $150) and notify the landlord when this is being done. HOA board members claim that while they have filed liens against delinquent landlords, they don't get their money until the landlord trys to sell their property.
1)Sounds unethical to involve a renter in their landlord's affairs; 2) the HOA is encouraging the renter to violate their contractual obligations to the landlord which is exactly what the landlord is doing to the HOA.
Does this fly?

Who pays the legal costs of the renter if the landlord sues them? Who pays the HOA's legal costs if the HOA is sued?

LjN,

The relationships in this situation are as such...

HOA to Owner

Owner to Renter

There is NO relationship between HOA and Renter - therefore your boards actions would be improper. However, I have learned that since this is a nation forum - to place this in my comments - check your governing documents to see if they speak to any relationship between Renter and HOA. I doubt that you will find any, but I have to put that out there.

If your board is even considering this, I would say that they need to really sit down and read the governing documents, state/local statutes, and also might even do a search or two on-line on the rights of tenants, and the fact that HOA's represent Owners and not renters.

JonD, I am curious, what is the "trigger" event for that procedure? Is it when the dollar amount owed to HOA is equal or greater than the rent? Is this a Court ordered option, or one in the HOA's governing documents?

Melissa, if this is a valid method for collections - then (IMHO) it should not matter to the HOA, so long as the owner's assessments are paid in full. When we move beyong the "scope" of what an HOA's role or responsibilities are, and can be upheld by the govnerning documents, we are engaging a very "slippery slope. It should matter not to the HOA if the owner's mortgage, car note, or cable bill are paid in full - as those are not relationships which the HOA has domain. While we might have "subjective" opinions about the owner, it is not the HOA's place to be involved in such matters. I could care less if the owner's assessments/dues are paid by a Court, tenant, or his kid's piggybank - so long as they are paid in US currency.

As we have read here, time and time again, there are different methods for handling assessments/collections. Some are specific powers which are statutory, and others rely exclusively on the HOA's governing documents - and there are those "hybrids" which may be some combination of all of the above.

I agree that the common relationship is HOA to Owner, and then Owner to Tenant. However there was a poster who stated that their state/jurisdiction allowed for additional remedies for the HOA to collect assessments/dues. It was not clear if this was part of his HOA's governing documents, or exclusively a state/law function - or even a Court "ordered" function/option. I think that it would be a good discussion here for all - to have a broader view of what other options work for other jurisdictions and HOA's - as we all are looking for ways to properly collect dues/assessments (not in the sense of "punitive" measures that become weapons, but rather additional information and options).

Subjectively speaking, I agree with you, if an owner doesn't pay dues/assessments, and other bills (not withstanding any personal issues - sickness, death, life's issues, etc), and just IGNORES (this is the KEY), the responsibility, that is not someone that I would want as a neighbor. If the person has suffered a life setback (as we all have at one point in our lives), and is in COMMUNICATION with the HOA on these matters - I believe that most governing documents allow some form of "discretionary" rule/enforcement, which resides in the board. If the person is just ignoring this option, and not communicating, that is a different story.

However as the saying goes, you might be able to pick your friends, but you are stuck with family... you can pick where you live, but you are going to be stuck with your neighbors....

I have no idea what state (or commonwealth) you are in, but it is very likely that, no matter where you are, the tenant has no legal obligation to the HOA. Your executive board will find themselves on extremely shaky ground if they attempt to collect from the tanant monies owed to the HOA by the homeowner. Additionally, the board may put the HOA in legal jeopardy by pursuing this method of collection. The tenant may take legal action against the HOA, perhaps citing harassment by the executive board.

TAKE THE HIGH ROAD... Your board should seek to communicate directly with the property owner to pursue collection. If that method fails, then follow the steps prescribed by your association's documents.

Agreed Gloria - I know that we've beat this one to death in previous postings. We had one renter that volunteered to pay the HOA fees when parking privileges were suspended and he just sent a letter to the landlord explaining that this was being deducted from his rent check. We can't force the renter to pay, but we are trying to use a lease addendum that just keeps everyone on the same page.

Your are correct - We were only trying to point out a 'workaround' as an alternative to what they were trying to do, which is not going to fly at all.

The "agreement" you are suggesting is supposed to take the form of a notification to the owner that this is what will happen. Apparently the renter can't be forced to pay the past due dues, and if they don't then foreclosure is the next step.
I have been notified that the Utah legislature passed this law two years ago.

For boards in Florida, check out FL Statue 720.3085 (8)...

(8) If the parcel is occupied by a tenant and the parcel owner is delinquent in paying any monetary obligation due to the association, the association may demand that the tenant pay to the association the future monetary obligations related to the parcel. The demand is continuing in nature, and upon demand, the tenant must continue to pay the monetary obligations until the association releases the tenant or the tenant discontinues tenancy in the parcel. A tenant who acts in good faith in response to a written demand from an association is immune from any claim from the parcel owner.
(a) If the tenant prepaid rent to the parcel owner before receiving the demand from the association and provides written evidence of paying the rent to the association within 14 days after receiving the demand, the tenant shall receive credit for the prepaid rent for the applicable period and must make any subsequent rental payments to the association to be credited against the monetary obligations of the parcel owner to the association. The association shall, upon request, provide the tenant with written receipts for payments made. The association shall mail written notice to the parcel owner of the association’s demand that the tenant pay monetary obligations to the association.
(b) The tenant is not liable for increases in the amount of the monetary obligations due unless the tenant was notified in writing of the increase at least 10 days before the date on which the rent is due. The tenant shall be given a credit against rents due to the parcel owner in the amount of assessments paid to the association.
(c) The association may issue notices under s. 83.56 and may sue for eviction under ss. 83.59-83.625 as if the association were a landlord under part II of chapter 83 if the tenant fails to pay a monetary obligation. However, the association is not otherwise considered a landlord under chapter 83 and specifically has no duties under s. 83.51.
(d) The tenant does not, by virtue of payment of monetary obligations, have any of the rights of a parcel owner to vote in any election or to examine the books and records of the association.
(e) A court may supersede the effect of this subsection by appointing a receiver.
History.—s. 1, ch. 2007-183; s. 1, ch. 2008-175; s. 26, ch. 2010-174.

Thanks Tim. I was doing research on this topic and the 2007 posts were the only ones I could find regarding tenants and past due HOA assessments. Maybe this will generate more conversation.

Dolores,

The only State (that I know of) that allows Associations to collect the rent from the renters to help defray unpaid assessments is Florida.

Renters still have a contractual obligation to pay the rent to the landlord unless a State law says otherwise.

Tim

I know of one HOA that passed a rule as part of their rental rules that makes landlords have in the lease that the HOA can collect past due assessments from the renter and the landlord has to consider it as if the rent was paid in full. I would NOT try this without having an attorney knowledgeable in your states landlord/tenant law draft it.