AZ bill automatically removes BOD if law not followed

Some good news for restoration of homeowner control of the boards failure to act in violation of state law.  Arizona bill HB 2607, Sess. L. Ch. 111 added this subsection regarding the removal of the board of directors.

Section 33-1243 for condos and 33-1813 for PUDs:

“(d) If all of the requirements of this subsection for calling a special meeting are met and the board of directors fails to call, notice and hold a special meeting within thirty days after receipt of the petition, the members of the board of directors are deemed removed from office effective at midnight of the thirty-first day.”

Of course, the homeowners must have a set of directors ready to take over and establish the election/appointment of the new board as party of the BOD’s records.

Thanks to Dennis Legere for his many efforts before the Arizona Legislature.

The Art of War and HOA Reforms War #1

While HOA reforms require new legislation in every state to restore lost rights and freedoms resulting from the adhesion, authoritarian CC&Rs “contract,” advocates need to understand that reform activity has moved from a social and political movement to a war against an entrenched enemy.  I have used terms like doing battle,  the enemy, attack, etc. not lightheartedly.

The common quote from The Art of War (the James Clavell version is easy reading), “If you know yourself and your enemy, you need not fear the result of a hundred battles,” is just one of many that are easily applied to any organized civil, contentious movement.  Just like we are facing in our attempts to reform the HOA concept and being faced with opposing forces led by CAI. 

We must all toughen up for success!

I have selected several statements from Chapter VI that can easily be seen as applicable to our efforts.  As a longtime student of history, especially military history, I offer my interpretations.  Alternate interpretations are possible. The numbering reflects the sentence number as used by Lao Tzu.

Chapter VI–

1. Whoever is first in the field and awaits the coming of the enemy, will be fresh for the fight; whoever is second in the field and has to hasten to battle will arrive exhausted.

2.Therefore, the clever combatant imposes his will on the enemy, but does not allow the enemy’s will to be imposed on him.

5.   Appear at points which the enemy must hasten to defend; march swiftly to places where you are not expected.

[Too often advocates have reacted to the CAI supported bills or positions rather putting their positions and bills on the “table” out first. They then need to catchup and defend against the allegations and not arguing their positions.]

[The following quotes advise the General (leader) to know the enemy — your opponent. Power negotiations is a two-party “game” and knowing the opposing teams’ strengths is important for success.]

10.  You may advance and be absolutely irresistible, if you make for the enemy’s weak points; you may retire and be safe from pursuit if your movements are more rapid than those of the enemy.

        [Taking some action regarding bills or any statements that need to be challenged.]

13.  By discovering the enemy’s dispositions and remaining invisible ourselves, we can keep our forces concentrated, while the enemy’s must be divided.

14.  We can form a single united body, while the enemy must split up into fractions. 

        [A failure of advocates to unite has hurt the reform movement. Each failure to unite allows CAI to boast, “See, they are nothing to be worried about.”  Legislators, like everybody else including lawyers, want to back winners, not losers.]

19.  Knowing the place and the time of the coming battle, we may concentrate from the greatest distances in order to fight.

22. Though the enemy be stronger in numbers, we may prevent him from fighting. Scheme so as to discover his plans and the likelihood of their success.

23.  Force him to reveal himself, so as to find out his vulnerable spots.

     [In summarizing these last 5 statements, advocates need spies, just like our military uses spies and sends out recon units in order to find out what’s happening. Lao Tzu stresses this aspect in his last chapter. With CAI closing ranks and restricting access to its websites, member spies must be recruited.  I did well using spies in my early activist days.]

Decl. of Indep. from HOA government — 2000

At this time when advocates are urging homeowners to present reform bills to their legislature, this earlier post of mine revealed the problem dealing with the legislature from the very beginning.  This 2014 repost refers to my appearance before the Arizona HOA Hearing committee in 2000, which also appeared in Robert Nelson’s book (p. 102) published by the Urban Institute Press.   

****

“In 2000, as a naïve and newbie to the politics at state legislatures, Arizona in particular, I addressed the HOA Study Committee on September 7^th (3^rd such meeting of unfulfilled 7) and submitted a statement titled, “HOMEOWNER’S DECLARATION OF INDEPENDENCE  from homeowner association governments.”  In it I quoted parts of the Decl. of Indep. And informed the committee that I had hoped that these hearings would bring forth a list of grievances for which homeowners were seeking redress. 

[In 2000 I testified – – -]

“And as in those times of 1776, a small, principled and dedicated group of citizens are seeking a redress of their grievances. They first looked to the existing government, the HOA Board, and failing to obtain satisfaction therein, must seek other means of redress – a radical change in the concept and legal structure of the homeowner association controlling document, the CC&Rs.

“Mr. Chairman, ladies and gentlemen of the Committee, at this time I had hoped that the citizens of Arizona would be able to present and enumerate their long list of abuses, and solutions to these abuses, similar to as is found enumerated in the Declaration of Independence, without the interference and obstruction by elements of these ‘oppressive governments.’  I see that this will not be the case.

“The people of Arizona only wish to be able to present their case before this Committee in a fair and just manner. However, sadly I feel that, because of the composition of the committee, the homeowners are actually being placed on trial; that they are being asked to justify their grievances before their oppressors” [CAI].

****

Today, I think it would be helpful to adopt my statement and add those grievances that you feel need to be solved, and submit the entire package to your legislature and the media.  It would be your declaration from HOA governments, your petition for redress. Of course, the more signatures you have the better. 

A united, national front to HOA reform legislation

A private Facebook group has undertaken a gallant and tedious effort to inform advocates across the country proposing reform legislation. Its Admin, Patrick, provides a list of numerous bills that are applicable to all states with modifications. Thus, I proposed a broad sweeping “intent section” by the homeowner rights advocates to be included in all proposed legislation under the Homeowner Reform Leaders National Group (HRLING). It should be added as the last section to all bills, e.g., “Section2. Intention of . . . HRLNG.”

As for specific legislation I proposed, I make reference to the “Homeowner Association Consent to be Governed Agreement An Act (to be known as the ‘Truth in HOAs’ Act,” paragraphs 1 and 4, March 2011).

1. “No provision of any contract or any declaration of covenants, conditions, and restrictions affecting lawful property uses of residences in a subdivision or condominium is enforceable in this state unless the party seeking to enforce the provision proves by clear and convincing evidence that 1) the provision being enforced was knowingly and voluntarily agreed to by all parties against whom it is being enforced; or 2) all parties against whom the provision is being enforced knowingly and voluntarily agreed to be bound by the provision without reading or understanding it.
2. “Therefore, the CC&Rs or Declaration for any planned community, condominium association or homeowners association shall state that, ‘The association hereby waivers and surrenders any rights or claims it may have, and herewith unconditionally and irrevocably agrees to be bound by the US and State Constitutions and laws of the State as if it were a local public government entity.’”

HB 919, the FL Bill of Rights for homeowners

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:

1. Restrictions on use of reserve funds;
2. The appointment and duties of the association recordkeeper;
3. The types of records to be maintained;
4. Director conflict of interests;
5. Provisions against SLAPP suits and forwarding by the FL Division of Condos of suspected criminal activity the law enforcement agencies;
6. Director obligations to act in good faith and act as a prudent person would in the best interests of the association;
7. Officer –  Director qualifications.

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.