Peter F. Drucker was an internationally renowned management consultant in the 50s and author of the management “bible,” The Practice of Management. “A classic since its publication in 1954, The Practice of Management was the first book to look at management as a whole and being a manager as a separate responsibility.” Bob Woodward you should know.
View publications here: Amazon.com: George K Staropoli: Books, Biography, Blog, Audiobooks, Kindle.
CORRECTION. This post was mistitled referring to new Hampshire but it is a North Carolina bill, HB 311.
NC State Representative Iler introduced HB 311 granting the AG with powers and authority to investigate HOA violations and to commence legal actions against the HOA if warranted. It seeks direct state involvement in protecting a class of citizens being denied the equal protection of the laws by amending §§ 47C-3-123 and 47F-3-123.
It may come to a surprise to many who find no ills living in an HOA, but it’s well known that state Attorney General’s offices have shied away from investigating and bringing legal actions against HOA board violations of state laws and their contractual obligations. The general response from a number of AGs has been “no authority to act,” although they have general powers to investigate white collar crimes; “the law needs to be changed, go to the Legislature to change the law.”
Representative Iler can be your champion! He needs your active support against a legislature – as are all state legislatures — that is hostile to HOA owner private property interests. NC citizen involvement is necessary for success!
On Friday, Miami-Dade State Attorney Katherine Fernandez Rundle joined Miami-Dade County Mayor Daniella Levine Cava and State Representative Juan Carlos Porras to announce a measure that would protect condo owners of abusive HOA board members. (See Proposed new bill would protect HOA homeowners – CBS Miami (cbsnews.com)
The bill, HB919, will be The Community Associations Bill of Rights for Florida. It is a necessary 60 page omnibus bill since over the years so much has been denied homeowners far too long. The numerous protections being added include:
And much more.
Floridians have no choice if they truly seek reforms but to actively support this bill, HB 919, and its sponsors: State Attorney Rundle, Mayor Cava, and Representative Porras.
Why is the exclusion of homestead protection for private HOAs a matter for the AZ Senate FIN committee? Is the committee afraid that HOAs will begin to fail in droves due to dead beat members retaining up to $400,000 in homestead exemptions if foreclosed on? (The HOA equivalent to public taxes). That’s odd, because for years CAI has presented surveys that all is well in HOA-Land with a 70% – 80% member approval. Or is there fear mongering going on again?
H’mmm. Suppose now that the fear is real and down go the HOAs, mainly on the directors failure to manage the HOA’s funds. Why then should HOAs get preferred treatment in violation of the Arizona Constitution, Article 2, Declaration of Rights? Let them fail as any other poorly run organization!
§32. Constitutional provisions mandatory. The provisions of this Constitution are mandatory, unless by express words they are declared to be otherwise.
§13. Equal privileges and immunities.. No law shall be enacted granting to any citizen, class of citizens, or corporation other than municipal, privileges or immunities which, upon the same terms, shall not equally belong to all citizens or corporations.
If the committee, and Legislature, proceed to withhold homestead protection then their act would be a clear violation of the AZ Constitution and subject to an easy challenge. It has happened in the past and the homeowners won! AZ Attorney General admits SB 1454 HOA to be invalid and without effect.
The unreasonable HOA take all foreclosure right is a cruel and unusual punishment. (Courts finally realizing the gross injustice of HOA foreclosures). It is linked to the denial of the homestead exemption which in effect, crushes without exception the dastardly homeowner for not paying up!
The Arizona Legislature is considering SB 1470 that attempts to restore homestead protection and correct this shameful treatment of good people. The opposition offers no justification, and the “general interest” argument is without merit as it denies fundamental rights. It’s a simple one-liner to be deleted. The case for the exemption was well stated in 2007 by California’s L. A. Times columnist Donie Vanitzian, JD,
“It is the titleholder’s personal asset that functions as a kind of perverse collateral, requiring the owner to pay assessments to the association-entity or lose his asset. . . . On purchase of that home and without anything more, the titleholder’s asset became a personal risk and personal liability for the owner. Instantly, the titleholder’s asset also became collateral for the association-entity.”
(California Common Interest Developments — Homeowner’s Guide, Donie Vanitzian, p. xviii, xix, Thomson – West 2006).
The Arizona 9 page, plus addendums, residential purchase agreement of some 400 lines does not inform the buyer that his home is security for the survival of the HOA. It is a statutory lien created by the state and not a voluntary agreement. On the other hand he is informed that his home is security for the mortgage.
Please protect the sanctity of the home and restore the homestead exemption to HOA homes. Pass SB 1470!
`Please pass SB 1470, homestead protection for the people.
History of Homestead Exemption HOA Exclusion (SB1470)
In 2004 ARS 33-1806(3)(h) was added to the mandatory disclosure requirements, requiring a buyer to sign an acknowledgment that he agrees to the loss of his homestead exemption (now $400,000). Just one year later, in 2005, the statute was again amended to remove any reference to the loss of the homestead exemption. In 2007 Governor Napolitano vetoed the homestead exemption bill on a flimsy argument – to many subjects.
Today, ADRE (real estate dept) still does not inform consumers of the loss of their homestead exemption.
In 2007 I wrote, in part,
“They [CAI] raise the issue of a consensual agreement, the unsigned CC&R ‘agreement,’ which, under Arizona statutes, is an exception to the application of the homestead protection. The author of the S/E amendment to the bill, Representative Farnsworth, made quite clear that ARS33-1807(A), which opens with, ‘The association has a lien . . . .’ (emphasis added), is a statutory lien and not a consensual lien – the homeowner has no choice in the matter whatsoever.
“Any reference to a consensual lien must come from a voluntarily entered agreement, and, not from a statute. Our concern here is the alleged CC&Rs consensual agreement that may contain a provision for an agreement to a lien for unpaid assessments and the right to foreclose. No CC&R that I have been made aware of mentions a surrender or a consent to the loss of the homestead exemption. No real estate purchase agreement that I am aware of mentions an agreement to surrender the homestead exemption. The CC&Rs have been held as binding, not as a consensual agreement per se, but by the application of the doctrine of constructive notice, or the simple posting to the county clerk’s office.”
This is the Legislature’s second chance to restore the equal protection of the laws to homeowners in HOAs. There is no justification for denying homestead protection when.
Resources
ARS Title 33, -Ch. 8
33 – 1101. A. Any person the age of eighteen or over, married, or single, who resides within the state may hold as a homestead exempt from attachment, execution and forced sale, not exceeding $400,000 in value, any one of the following:
1. The person’s interest in real property in one compact body upon which exists a dwelling house in which the person resides.
2. The person’s interest in one condominium or cooperative in which the person resides.
33-1103. Homestead exemption; extent of exemption; exceptions
A. Real property that is subject to the homestead exemption provided for in section 33-1101, subsection A is exempt from involuntary sale under a judgment or lien, except in connection with:
1. A consensual lien, including a mortgage or deed of trust, or contract of conveyance.
33- 1256; 33 – 1807. A. The association has a lien on a unit for any assessment levied 14 against that unit from the time the assessment becomes due.
SB1470 (Feb. 13, 2023)
C. Subsection B of this section does not affect the priority of
10 mechanics’ or materialmen’s liens or the priority of liens for other
11 assessments made by the association The lien under this section is not
12 subject to chapter 8 of this title.
HOA Constitutional Government 