Mgmt case study #1 – update2

Management Case Study #1 update2 — BOD good faith conduct

George K. Staropoli, December 31, 2021



SCG members, as a PUD, do not have title to any of the assets of the association. SCG, as represented by its board, owns title. Members have  beneficial interest, but not title to some $22 million in revenues, $21 million in reserve funds (cash equivalents), and $64 million in assets as reported on its IRS 990 filing for 2019.

The tone of  Thursday’s board CHAT meeting was clearly secretive for the Directors only and to say as little as possible for member consumption — on a “need to know basis” and the members didn’t need to know.  The president came across as the man-in-charge and making statements that ignored the statutes and governing documents; misstating that the CHAT was not a legal board meeting, just a chat amongst the directors, with a few acceptable attendees allowed to speak. 

Much to the arrogance and  naiveté of the president and the directors, I have had over 10 years dealing with Arizona legislature, proposing bills, and testifying for HOA reforms.  I played an important role in the establishment of OAH hearing HOA member complaints, vehemently opposed by CAI. The SCG “clique” has some 13 CAI members, former and current.

Read this important update that serves a warning to all those large active-adult or master planned HOAs that this could be happening to you.

3 thoughts on “Mgmt case study #1 – update2”

  1. 1st, your abbreviation for SCG is what? Have no clue its not spelled out as to who you are talking about, respectfully. Please provide who or what is “SCG”.

    1. Good morning Donna. What are you doing up so early?

      I’m sure many others would like to know more about SCG but identifying this HOA would only cause many to focus on it alone, viewing it as a local case – not my HOA. This will fall into the hands of CAI who has repeatedly lobbied the media and legislatures just that. It has worked because homeowner advocates have repeatedly refused to unite – not my HOA, not my state.

      As it developed, SCG has become an excellent subject for my case studies demonstrating conduct and attitudes found in the most itty-bitty HOAs across the country. However, SCG has about $22 million in annual revenues, some $64 million in assets, ruling over some 9,000 homes. Its demographics, from a 2018 study by an ASU professor, shows some 84.3% with incomes over $45,000, 86% with some college or more, and 88.9% are retired, yet 64.6 live in SCG year round.

      There are 2 FB groups of approximately 1,000 members each, one allows free speech and the other prefers to bury their heads in the sand not allowing political speech. I guess it upsets their illusion of paradise on earth. I’m reminded of Col. Jessup shouting at Lt. Kaffee, “You can’t handle the truth!”

      If these upper-class owners can be fooled and accept and submit to authoritarian regimes, what does that say about the poor, little people living in small to medium HOAs?? I guess they don’t count!

      What I hope my followers will take away from my studies is the need to obtain, document, collect, and expose these events and attitudes of their BODs. At times, it is necessary to ask leading questions just to obtain and document the board’s replies — getting hard evidence from the horse’s mouth that they would have difficulty in refuting.
      Developments are occurring. A BOD election will occur this month — after unknowingly or not caring adopting a voter suppression amendment, as a result of a 15 month voting period in order to get the approval vote. If not enough candidates, no member vote is necessary.

  2. Victim of fraud three lawyers withdrew adre judge decision was criminal fraud she ignored deed and book page and city ordinance judge Starr voided it lawyers in arizona did not use that voided judge to file criminal case

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