AZ Gov. finds bill too confusing for HOA boards and managers

AZ Gov. Brewer found HB 2513 too confusing for HOA board and directors, so she vetoed the bill.

The effect of this bill is unclear as to what is permitted or prohibited in terms of renting and the information to be provided to an association regarding an owner’s renter. This would result in confusion for association boards and property management companies who are legally responsible for managing communities.

HB 2513 would have added a new section to the condo and HOA statutes, ARS 33-1260.01 and 33-1806.01. Subsections A an B seem rather straight forward — deal with the designated agent. What’s the problem? Subsection C requires certain information on the renter to be given to the HOA, such as names, number in family, car license plates, and ages if in an age restricted community. No problem here either; rather straight forward again.

Subsection D allows for a measly $25 transfer fee, as compared to fees of $500 – $1,200 on a sale. It also prohibited any “new” types of fines for renters. H’mmmm. Restrictions on the HOA?

Now we come to the last subsection, E. It prohibits the HOA from any of the following:

1. copies of the rental agreement, credit report or other personal information.

2. having the renter sign a waiver of or limitation on his rights due process rights.

The bill is silent on any guarantee that the renter has the same rights and access to the amenities as an owner, except voting rights. This is only fair as it would balance the playing field if the renter is subject to fines. But, the bill is silent on this renter protection.

I AM confused about what’s so confusing, or was it really another issue, one of again protecting the HOA by prohibiting an invasion of renter privacy — some would say it would have prevented HOA snooping. To understand what appears to be happening here, let’s look at ARS 33-1805, HOA record access by members, and see the degree to which the HOA is protecting itself using statutes that allow for a lack of transparency.

Subsection (B) contains restrictions on member access to HOA records that includes,

“4. Personal, health or financial records of an individual member of the association, an individual employee of the association or an individual employee of a contractor for the association, including records of the association directly related to the personal, health or financial information about an individual member of the association, an individual employee of the association or an individual employee of a contractor for the association.

“5. Records relating to the job performance of, compensation of, health records of or specific complaints against an individual employee of the association or an individual employee of a contractor of the association who works under the direction of the association.”

This is clearly protective of the HOA, and its employees and officials acting on behalf of the HOA, and is apparently not too confusing or too complicated for the HOA directors or managers. I mean, don’t they frequently use their attorneys to defend their views of the laws?

So, what’s the real story Governor Brewer? Why are you denying a just and fair procedure to protect the individual rights and freedoms of residents and owners, while at the same time having no issue with protecting the HOA from sunshine laws and transparency? Something is wrong here! It’s plain and simple that your veto is just another act consistent with the Arizona public policy of protecting HOAs from its members who “pay the freight.”

Published in: on April 15, 2012 at 6:04 pm  Comments (1)  
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  1. Actually there might be some confusion. Section 33-1812 prohibited proxies. It could be argued that 33-1806.01.B would have permited a proxy for rental property.

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