When will HOAs be regulated to protect homeowners?

Deborah Goonan[1] speaks out:

“As explained in a previous post Recipe for HOA abuse: too much power, no accountability, across the nation, housing consumers are fed up with HOA bully boards, often driven by predatory management agents and community association attorneys, all under the guise of “protecting property values.”

Notes:

  1. See Deborah Goonan, Independent American Communities, Time to Deregulate HOAS.

Fragmented HOA owners continue into the new year

HOA owners, advocates and activates still don’t understand that they are and remain a fragmented group of individuals with similar HOA issues and problems, up against a united opposition headed by CAI. They stand, as a group, in the same shoes as employees did at the turn of the 20th century until the Feds stepped in and legalized opposition groups of employees into unions.

Some still believe unions were and are bad, but that is beside the point. HOA owners need federally protected rights to oppose the HOA corporations. Let’s use the term, ”HOA Homeowners Community Association.” But, that won’t happen until owners can unite at least for the purpose of federal protection. Otherwise, the good efforts of the many who publicize are just spinning wheels – the decision makers are well aware of the many, many, common problems.

See my 2013 post, Organize, organize, organize, but organize your local HOA, on organizing at the local level – the HOA. Just expand that into a federally protected right to organize. See also, my 2014 post, Proposed US Constitution amendments will help HOA reforms on Supreme Court Justice Stevens’ proposed constitutional amendments.

Another year coming up for HOAs

With the new year looming, and the Imperial Trump controlling the Republican party, and the Republicans controlling the US Senate, nothing new will  occur.  No charges against Trump, or new HOA laws of substance will occur without the Senate’s approval.

Just the facts.

Trump-henry8

 

Can the HOA sue in a voluntary HOA?

Deborah Goonan, in her blog post, Independent American Communities by Deborah Goonan, quoting the article, Do Voluntary Civic Associations Have Authority to Enforce Their Covenants and Restrictions Over Real Property? raises a very important subtle issue of distinction —  powers of voluntary HOAs over nonmembers.

While homeowners with a voluntary HOA well understand that they are not required to pay assessments, they presume that they are not subject to the enforcement of CC&Rs by the HOA. Deborah quotes from the article, my emphasis, Usually when an association is labeled “voluntary” it means the payment of dues and assessments by its members is voluntary, not the obligation of owners to abide by the covenants and restrictions.

The article makes the argument that the voluntary HOA, where given power by the state, can enforce the CC&Rs, not its rule and regulations or fines, or anything else pertaining to its members.  In order to enforce its “rules” on nonmembers, the HOA must first amend the CC&Rs, which requires a vote of all the homeowners. Nonvoluntary HOAs use the term “members” since all lot owners are members, while the amendment procedure for voluntary HOAs usually refers to all “lot owners.”  Big distinction!

SO, if the HOA comes knocking, check these requirements out. If the HOA does not meet these requirements, any legal suit can be denied as having no standing, or legal right, to sue.

Judicial system forces HOA member to defend statute constitutionality

In the good ol’ medieval days the Emperor or King could do no wrong, because he was the law unto himself.  Until, say, 1215 in England where the Magna Carter, written by the nobles against King John of the Robin Hood tale,  placed restrictions on his power.

By the time of the American Revolution, the state representatives distrusted federal power and adopted the separation of powers doctrine whereby each branch could serve as a check on the other branches.  While the legislatures (Congress) would write the laws the judiciary could declare them in violation of the Constitution. The best reasoning I came across for  this was that the legislators were not lawyers and that they could get confused time to time and not fully understand the laws.  Never mind that each state legislature has a Rules Committee with lawyers whose duties are to examine the constitutionality of a bill.

Now come the supreme courts to set them straight and rule on constitutionality.    But, and a big BUT, the judiciary adopted a new doctrine, one that says all approved bills have the presumption of constitutionality.  Goodbye Rules Committees that continue to mislead the public that they serve as a valid check on constitutionality.  A challenge could still made by any public person affected by the new law.

In regard to our area of interest, HOA-LAND, that means the average homeowner or HOA can institute, or defend, a constitutionality challenge with the burden that unconstitutionality must be overwhelmingly made in court.  This what Annette Cohen is currently facing in her defense of legally valid OAH decisions that are enforceable.  (See AZ HOA due process by OAH being challenged once again.)  So the game is rigged against the homeowner who, to preserve her OAH decision, must fight the constitutionality challenge, alone.  But, what about agency and legislature support?

In 2009-10 I was heavily criticizing the failure of the agency and Legislature to file a brief in defense of the HOA – OAH bill.   In the next session the Legislature passed  HB2774, Ch. 105 (2010) making it clear that state officials and entities could not be compelled to intervene and defend statute constitutionality.  I proudly named it “The Take That George” bill.

Note that if she loses, it’s a huge loss for all HOA members in Arizona.

One would think that the legislature would defend its passing a bill into law. Apparently not, when it comes to HOA laws.  By law, an agency is the entity to handle HOA complaints that then seeks “professional” legal help by turning the complaint over to OAH (Office of Administrative Hearings) for adjudication.  One would think it,  now ADRE (real estate department), would defend its process of handling HOA complaints.

As of this writing, there is no court filing of a notice of appearance by the ADRE attorney, the AG, or by the Legislature, which would be required before the AG can file its brief.