New HOA rule may increase your rent!

In May, the HOA board approved a Crime Free Lease Addendum (CFLA) that requires any homeowner who rents a lot (or renews/revises an existing rental agreement) to pay a $200 administrative fee to the HOA which will likely be passed from owner to tenant as an increase in rent or deposit. The board defends the fee since communities are "facing issues with rentals to include drop houses (where illegal aliens are held and crimes such as kidnapping, rape, aggravated assault, extortion, prostitution and even murder are common), drug stash houses (where rental homes were used as covert drug staging areas for distribution), meth labs, or where some renters have been engaged in serious criminal activity".

Since incorporation in 1997, the association has held the responsibility under Article 8.13 of maintaining notices of the existence of leases by each homeowner, yet no fees have ever been assessed for this activity. Beyond maintaining the records for leases within the community, the fee will be used to create CD ROM versions of the original 1997 CC&Rs, and ByLaws which will then be delivered to the tenant. The board believes that "many landlords have demonstrated that they are more concerned with revenue than they are with ensuring that their home is in good shape and that it conforms to the community rules and guidelines." and that "as a result of being properly educated of the rules of the association, there is more of a chance of voluntary compliance."

Let's be real:

Crime will be reduced because renters will now have HOA documents on a CD ROM? Really?

The new Addendum is a dubious way to raise the necessary funds to cover an increase in management fees on the backs of a subset of owners and their tenants. Approval to give our management company a $300.00 increase in management fees for a grand total of $6300/month was approved in the same meeting.

The $200 fee provides no value to the community towards reduction of crime nor does it give the HOA any additional authority or ability not already granted/required in the existing documents and by existing Arizona statute.

The Addendum is discriminatory on three counts: 1) by generalizing renters/owners and their tenants as being less concerned about maintaining their properties, and therefore are more prone to criminal activity. 2) by assuming the burden of Crime Free administrative fees lies solely with renter/owners and their tenants regardless if the renter/owner or tenant has any record of HOA violations. 3) by assuming the Crime Free fee need not apply to resident/owners or foreclosure/owners regardless of HOA violation history.

The Addendum is is an overreach of power by the HOA per Article 6 section 6.5 which states that the association may "establish a system of fines and charges for violation of the Project Documents; however, the Association Rules may not discriminate among Owners".