Mgmt case study #1 – update2

Management Case Study #1 update2 — BOD good faith conduct

George K. Staropoli, December 31, 2021

MUST READ FOR CONCERNED MEMBERS

SCG BOARD UNEQUIVALLY DEMONSTRATED THAT IT’S A ROGUE BOD

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.

America cannot be completely unified with HOAs

America cannot be completely unified with HOA-Land not subject to Constitution

Our new #PresidentBiden and #VicePresidentHarris have a task before them if they truly seek to unite America.  There are some 23% of Americans live under special laws for special entities known as #HOAs – #homeownerassociations – that are authoritarian local governments not subject to the #Constitution as required by all local and state governments.

In total, these fragmented HOAs constitute The HOA-Land Nation within America, actively encouraged and supported by all state legislatures to some degree or another.  Only the federal government can act Restoring the lost Constitution to HOA-Land.  I brought this very need to the attention of the Trump presidency with no results (Rogue presidents: Trump and HOAs). A Plan Toward Restructuring the HOA Model of Governance has been proposed to this effect.

I now call upon President Biden and Vice President Harris to truly unite all Americans under the Constitution and the laws of the land.