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Good morning. As a tenant, you need to comply with the HOA rules. If this is forbidden by the HOA in your rental building and they find out, you would receive a notice to cease and stop renting and/or a fine could be imposed and you would have to pay it. Moreover, this could be a violation of your lease agreement with the landlord and they could proceed and evict. The issue with the license is per local regulation, so if this is something someone is doing, they need to obtain the license. If they do not and are renting, they could be fined. This is outside the issue if your rental with the landlord and the rules of the HOA, so if either found out, they could use it against you and fine or possible evict.
I do not think it would get to that point. If they sued you, it would need to be for damages. If you have a lease and you breached it and they evicted, they may try and also sue and go after you for the rent which is owed, while the rental sits idle. They are not likely going to go after you and say that you owe them a share of what you received, since your obligation and agreement with them, is to pay your rent each month. Now, if they can show damages as a direct result of this, they can try and recover but normally they just want the tenant out, so the conduct ceases.
The city could go after the landlord and/or you, for renting without the business license. It would likely result in a fine, which you would be liable for. The eviction is what the landlord would use to remove you, if you are in violation of the lease and/or HOA rules and regulations, assuming they do not simply allow this to cease and allow you to remain. You are welcome. Please let me know if there is anything else, as I would be happy to respond. If not, please remember to rate my help at this time at the top of this page, prior to leaving, so I can receive the proper credit, for our time together. A 5 STAR rating is greatly appreciated. Thank you.