Many homeowners have become alienated from the political process both within the HOA — board of directors, president, community managers (CAM), and the HOA attorney; and within state government – the legislature, judiciary, and elected officials. The news media has failed to tell the truth and to ask the hard questions, as they commonly proclaim to their audiences, with respect to the HOA legal scheme, questions of constitutionality, and misrepresentation in the selling process; thereby giving a false message and spreading misinformation in support of the special interests.
They feel that their voice doesn’t matter and that the special interests control the policy decisions affecting their lives. VCL-HOA assures that homeowner influence is brought to bear on the decisions made by politicians and state legislatures and agencies, including on the HOA political community as well.The Valley Citizens League – Homeowners Association Research is a national, member-based community organization performing research on HOA problems and issues through a study process, rather than by opinion polls, surveys or focus groups.
Important information: View full document, VCL-HOA, Sample case analysis, Sample legislative memo
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HOA Constitutional Government 
You’re doing a great job.
Thanks
Keep up the good work.
Thanks
I have recently filed a complaint with the AZ State Bar against the HOA attorney who has had serious issues as to his duty and oath. Basically, he is despicable in practice. He was “hired” by one woman who was acting as the sole member of the sub-HOA board of directors. His Type of “lawyering” is to treat those you are addressing as followers, ill-informed, and naive. He threw in random court case citings for “show”, none of which were relevant. His goal was to confuse, scare, and silence, anyone who questioned the actions of this woman.
He did not expect me. When my 85-year-old neighbor was treated disrespectfully by this woman when she called months earlier and scolded that the actions taken were legal and she planned on 4 more fee increases. Neighbors were afraid of this woman. She abused her position and lied to the community. Bragging that her life careers were in HOA management, led her to feel empowered to do anything she wanted. Hiring anyone with HOA funds was not legal nor in her authority. She even had a working relationship with the sub-HOA management company. Bottom line, the lawyer sent an email two hours prior to an “open meeting” via Zoom. The meeting left all members muted, and she appointed two of her friends to correct the Board of Directors Quorum.
She raised fees, authorized and spent a large amount of reserve money, and hired current employees who worked for her at previous HOA management positions, and she was an onsite executive team member of the Arizona Management Company Association/non-profit operation to support boards and HOA management companies. The entire entanglement stunk. But, community members had no clue as to the process, laws, and procedures. They felt bullied, lied to, taken advantage of, and continued to pay the increase in fee that was not legal.
This woman refused to accept volunteers to fill the board to establish a 3 person quorum. This attorney was an active member of the state AZ HOA Management Association. He took a position to defend her despicable claim that she had all the legal power to operate as one. The master HOA was informed and was dumbfounded by her blatant acts. She raised fees from $100 to $120, on top of paying $80 to the master HOA. We are a community of 100 or so,
too small to have a second HOA.
I taught civil and criminal law for 25 years. I am not a lawyer, but I do know how to effectively apply the laws, as well as the Bylaws, Articles, and more. I was the President of the largest HOA in North Texas. I had to fight the same inner circle corruption and abuses of position.
This nation is filled with “volunteers” drunk on power, title, and position in HOAs. It is my opinion that the HOA business fails to provide adequate protections for homeowners. What little “certification” is now offered to Management companies is a joke. The larger concern is the financial power, authority, and responsibility being left to volunteers to manage/spend. Every single business knows the number one priority of fiduciary duty and accountability is to make sure those who have authority to manage financial income and debt are educated, and certified, but most importantly legally accountable if actions of the board of directors, employees, and hired third parties mean something.
Of course, no volunteer would want to be “liable”, or volunteers would not come forward to be on an HOA board of directors. However, the Board of Directors should be a “liability” for the hired HOA management company. They are liable for fiduciary mismanagement, and the consequence is to have them quit or be fired. A Board of Directors should NOT be able to function separately from an HOA Management Company. Both parties should be liable to one another. And, neither should be in the same camp. Checks and Balances despite their failure in our own Federal Government, but necessary.
How to institute? Every single person and entity will think twice if it means a “liability” consequence. Change that at the State level? HA, start first at the HOA level when the homeowners are tasked with voting each year. Change the Bylaws to include Checks and Balances. And specify actual consequences.
When any money is involved, the system has no liability. Even if the HOA spent money not authorized – they quit or are fired; If a board member spends, or hires outside proper authority or procedure, they quit or are removed. But, rarely is anyone brought to justice civilly or criminally when they intentionally cause fiduciary harm to the HOA or individual Homeowners.
We the People – Checks and Balance system (HOA management/Congress); (Board of directors/Executive branch); AND an outside third party should be the rule of law. That can not be an attorney hired by the board, but an attorney who solely works and protects homeowners separate from the HOA and Board. That attorney should be retained the same way the Board is hired – membership voting. If voted for by a majority – retain and let that attorney stand between the Board/HOA and the homeowners to resolve matters.
I plan on running for this board in this sub-HOA. I am not sending out a paragraph offering to “beautify”, work for the homeowners, or not raise fees. I am running that I will do what it takes to dissolve the sub-HOA, fire the management company, and properly vet board members who wish to run through an outside third party – the attorney representing the homeowners, or the Master HOA. Sub-HOAs were meant for “golf “clubs, “tennis clubs”, and privileged community club members who lived within the community as a whole, but wanted to establish an entity that has the authority and power to operate within the Master HOA, but separately to protect special circumstances. Homeowners choose who they wish to belong. If both, then they know upfront they pay both.
I am throwing all the same ideas that have been tossed out there a million times over by now. BUT, the only way to clean up the HOA abuses is to first separate Boards, HOA management companies, and Homeowners financially. Who gives authority to spend outside basic upkeep expenses, the homeowners via voting. Who gives the Board to authorize payments for anything, including upgrades, remodels, replacements, repairs, and improvements – the Homeowners via voting. Who gives the HOA management company the authority to manage the basic operation of the HOA – electric bill, general landscaping, tax bill, insurance bill, water bill, gas bill, and website management?
HOA has problems – present to board in an open meeting. The board needs to raise fees, pay for expenses not covered – present to the board in an open meeting. Absolutely no money should or can be spent on anything outside the basic day-to-day bills, including hiring third parties without the open input of homeowners.
Confidential matters for the Board of Directors – fines, fees, lawyer advice, or civil action should never be recovered at the whim of any Board member or board. The abuses in HOA come from this area more than any other. Who hires that outside party? The Board also pays for the retained attorney for the homeowners. Thus stepping back and realizing legal expenses for HOAs are ridiculous, overused, and biased. Homeowners rarely have an opportunity to speak to the Board of Directors. Non-Escalation resolution!!!!!
This Sub-HOA sends more cease and desist letters than notices. Every complaint on call, or emailed, or mailed is never addressed using a non-escalated resolution method. Silence the complainer, threatening legal action, a civil fine, and increasing risk of civil and criminal conflict is the outcome. $$$.
Each and every Board member and Homeowners MUST UNDERSTAND THAT THE BYLAWS, ARTICLES, COVENANTS, POLICIES, OR RULES ARE NOT MEANT TO BE APPLIED IN STONE AS WRITTEN FOR ONE EVENT BUT IGNORED ON ANOTHER. THEY ARE THE LEGAL GUIDELINES TO BE USED TO SUPPORT ACTIONS, NOT TO BE APPLED AS INTERPRETED FOR THE MOMENT AFTER THE ACTION AS ALREADY TAKEN PLACE. THE BOARD MUST OPERATE WITH THE PREMISE OF DISCRETION, NOT FAVOR.
Great ideas. BUT HOW? Politicians are useless. It takes one HOA community to manage in a productive, fair, and financially responsible manner first to expand.
How to get an HOA to change their operation, not their Bylaws/Articles, but how they manage. Those are policy and rule changes. If change is necessary to the bylaws or articles that is not difficult to amend, or clarify. Homeowners won’t vote, or get involved, THEN IT IS TIME TO ABOLISH THAT HOA! WILL THAT CHANGE THE MINDS OF HOMEOWNERS AS TO THE LEVEL OF INVOLVEMENT? YES, LET THEM VOTE.
Voting… a Serious barrier for every HOA. Rarely can you get all homeowners to vote. Many could care less, many rent, and others are part-time residents. Sending out ballots is the process. First, Every HOA should use an outside party to conduct voting. Voting should be onsite. If there is no place to hold voting, then establish a location with a canopy or a damned truck. If a sub-HOA, use the Master HOA as the location. Those votes should NEVER BE COUNTED BY A VOLUNTEER HOMEOWNER. That count should always be an outside party, as should vetting be done using a third party. Using the HOA management manager or Board is biased and leads to serious problems, like a failure to protect checks and balances. The process has to be non-political, fair, and free of influence.
Still won’t vote?
Then make sure you change the way that duty is established. Members need to be held accountable to vote. Meaning establishing a process that is familiar, and as convenient as paying your dues. Yes, follow the Bylaws and mail them out in a time frame, and … MAILERS THAT ARE NOT BILLS ARE TOSSED, IGNORED, OR FORGOTTEN. VOTING MUST BE A PRIORITY IN FUNCTIONING FAIRLY, AND EFFECTIVELY.
KEEP THE LAWYERS OUT AS MUCH AS POSSIBLE. ALLOW FOR A RETAINED HOMEOWNER LAWYER WHO IS AVAILABLE FOR REVIEW. IF THE HOMEOWNER WISHES TO HIRE TO INTERVENE ON THEIR BEHALF THEN CHARGE THE HOMEOWNER IF THERE IS A CASE. IF THERE IS A CONFLICT OF INTEREST BETWEEN HOMEOWNERS, THEN FIRST COME, FIRST SERVE IN ACCESSING THE HOMEOWNER’S ATTORNEY. THE ATTORNEY MAY NOT ACT ON THE BEHALF OF ONE HOMEOWNER AGAINST ANOTHER HOMEOWNER, EXCEPT FOR THE BOARD OF DIRECTORS AND THE HOA MANAGEMENT.
LIMIT AUTHORITY! HOA management is way too powerful. The volunteer Board of Directors must operate as a Quorum and on behalf of all homeowners, not the HOA management company. They work for the homeowners, not self-deserving, nor for the HOA management company. Conflict of interest. Use the homeowner’s attorney as the go-between. If the Board needs an attorney to protect the HOA, then vote and hire. The difference is, there is representation for both sides. The homeowners should never be left to beg for the Board to hear them, listen to them, or hear their side.
These are changes that need to be done to show success if possible. Then it should become a standard for success. Maybe then politicians would change laws. Maybe then the HOA management companies and their interest groups/attorneys are not abusing homeowners as they work as a biased interest group. No more Board members “take whoever you can ” volunteering. The process must begin as soon as the new board is seated. Ongoing vetting, voting, and informing.
But, what do I know.
Very well aid; to the point. I wish you luck in mustering the membership needed to overcome the BOD – 1 director will be put into the corner and leave frustrated. You need a majority of the board! And that requires education. Use your knowledge, the new laws as of this November –see session laws at AZLEG; and very importantly, HB2158, Ch 125, last year that provides for protected free speech on issues of HOA governance. Please keep me posted. admin@pvtgov.info