AZ legislature fears HOA failures if homestead protection permitted?

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.

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"The Voice for HOA Constitutionality". I have been a long-term homeowner rights authority, advocate and author of "The HOA-Land Nation Within America" (2019) and" Establishing the New America of independent HOA principalities" (2008). See HOA Constitutional Government at My efforts with HOAs took me to a broader concern that was deeply affecting the constituionality of HOAs. Those broad societal and plotical concerns caused me to start this new blog for my commentaries on the State of the New America.

One thought on “AZ legislature fears HOA failures if homestead protection permitted?”

  1. As of today, the AZ Senate FIN committee will still not be meeting on Feb. 27. SB 1470, homestead exemption for HOAs, is still in limbo.

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