§514B-145 - Association fiscal matters; collection of unpaid assessments from tenants or rental agents.
§514B-145
Association fiscal matters; collection of unpaid assessments from
tenants or rental agents. (a) If the owner of a unit rents or leases the
unit and is in default for thirty days or more in the payment of the unit's
share of the common expenses, the board, for as long as the default continues,
may demand in writing and receive each month from any tenant occupying the unit
or rental agent renting the unit, an amount sufficient to pay all sums due from
the unit owner to the association, including interest, if any, but the amount
shall not exceed the tenant's rent due each month. The tenant's payment under
this section shall discharge that amount of payment from the tenant's rent
obligation, and any contractual provision to the contrary shall be void as a
matter of law.
(b) Before
taking any action under this section, the board shall give to the delinquent
unit owner written notice of its intent to collect the rent owed. The notice
shall:
(1) Be sent both
by first-class and certified mail;
(2) Set forth the
exact amount the association claims is due and owing by the unit owner; and
(3) Indicate the
intent of the board to collect such amount from the rent, along with any other
amounts that become due and remain unpaid.
(c) The
unit owner shall not take any retaliatory action against the tenant for
payments made under this section.
(d) The
payment of any portion of the unit's share of common expenses by the tenant
pursuant to a written demand by the board is a complete defense, to the extent of
the amount demanded and paid by the tenant, in an action for nonpayment of rent
brought by the unit owner against a tenant.
(e) The
board may not demand payment from the tenant pursuant to this section if:
(1) A
commissioner or receiver has been appointed to take charge of the premises
pending a mortgage foreclosure;
(2) A mortgagee
is in possession pending a mortgage foreclosure; or
(3) The tenant is
served with a court order directing payment to a third party.
(f) In the
event of any conflict between this section and any provision of chapter 521,
the conflict shall be resolved in favor of this section; provided that if the
tenant is entitled to an offset of rent under chapter 521, the tenant may
deduct the offset from the amount due to the association, up to the limits
stated in chapter 521. Nothing herein precludes the unit owner or tenant from
seeking equitable relief from a court of competent jurisdiction or seeking a
judicial determination of the amount owed.
(g) Before
the board may take the actions permitted under subsection (a), the board shall
adopt a written policy providing for the actions and have the policy approved
by a majority vote of the unit owners at an annual or special meeting of the
association or by the written consent of a majority of the unit owners. [L
2004, c 164, pt of §2; am L 2006, c 273, §32]