The Arizona Central CAI Chapter was dealt a sound thrashing today by the Arizona Senate. HB 2441, written line-by-line by CAI, and submitted to a way too friendly legislator, was overwhelmingly defeated in a 3 – 27 vote.
In a desperate attempt to remain influential in the legislature and before HOA boards, CAI proposed a bill that contradicted its years and years of opposition to HOA reform legislation. Among its hollowed arguments that were solidly and repeatedly reversed were: local democratic control of the HOA and unwanted government interference with HOA contracts. With respect to amending the CC&Rs — those documents handed down by developer attorneys and amended by CAI HOA attorneys for over 40 years — CAI proposed a 2/3 vote of the votes cast under a 50% quorum to amend the CC&Rs. (Read carefully: That’s 1/3 of all the members!)
And, to insure that local control remained in the hands of a minority — also known as an oligarchy — that the members could not have recourse to the courts to appeal any amendment to the CC&Rs. In an arrogant display of misguided power, at the same time that CAI proposed this bill, CAI was opposing the right of homeowners to take their HOA problems to an independent tribunal, the Office of Administrative Hearings.
Scott Carpenter, the CAI attorney who submitted the bill, proudly boasted in his Jan 10, 2011 enewsletter, “2011 Legislative Preview”,
I have always and will advocate for legislation that keeps control of community associations local – with the members and their elected board of directors. I will disfavor legislation that usurps or trumps local control in favor of a one-size-fits-all approach that the legislature has used in recent years to address political signs, solar panels, real estate signs, parking and other issues.
Apparently, he meant “local control” even if by means a minority of the members. Apparently, he meant with the imposition of state law, a fiat, stripping homeowner contractual rights away from them. With HB 2441, he gave meaning to the above statement and was seeking the aid of the legislature to interfere in the CC&Rs contract. In the most despicable and un-American provisions of the bill, CAI sought to impose these minority rights on homeowners who would lose their private property rights under the CC&RS – without their consent. A contract that CIA always told them that they had agreed to, and was binding upon them.
Now, to serve CAI’s self-interests, majority rule was out, and contract interference by the legislature was OK! See the CAI lobbyist’s feeble attempt to justify the bill HB 2441. Read the criticism of the March version, susequent changes did not materially affect the essential problems with the bill. Go to