EconProf and urbanrealtor both served HOA board before. In my friend’s case, the home owner cooperated with HOA and asked several times the tenant to correct the issue. Nothing owner did wrong. If the owner tries to fight the HOA in court how do you think of the chances are. There are also 2 other ways of resolving dispute – internal meeting with a HOA assigned board member and third part arbitration. Of course the method with lowest cost is internal meeting.
It seems this HOA has too big power on how they can charge penalty. One HOA of my home has very well documented procedure and descriptions on how much and how they charge penalty. For example first notice warning, 2nd notice warning, 3rd notice $100 fine, 4th notice $200 fine. They delivered those documents yearly to all home owners. I don’t think my friend’s condo HOA has a written penalty procedure transparent to all home owners.
Most leases, especially those popular California Realtor Association lease form, indeed have language saying tenant is responsible to pay HOA penalty.