This one is fairly straight forward. You sent her the letter so I would hope that you have some guidelines in place that allow for fines. You simply fine her until she decides to comply. If that doesn't work, turn her into her state licensing agency and advise them she is opperating a daycare from an illegal location. I'll bet that the state would take action on her license to operate the day care. If she's still in business, file a lien. If that doesn't work, serve her with a foreclosure lawsuit. 
 
I've learned that if you hammer at the hardheaded folks consistently, you'll eventually gain compliance or get rid of them. 
 
Darron Hay 
 
HOA Receivables Management

Good advice, Darron. What state are you located?

I'm physically located in Washington but we do business in a number of states. We're in 25 states with licensure pending in three others. The goal is by the end of 2010 we'll be in about 35 states with the highest concentration of HOA's and condos.

I live in a condo and it is against the rules to operate a commercial business doing a craft out of wood from my home. I create and store my product off site. I do have a business license listing my home address as the business address. I store some of the items that I use when selling the product in my garage such as a rack to transport a canopy, chairs,tables and booth decorations. Am I violating the rules?