
Col. Jessup shouting to Lt. Kaffee (A Few Good Men).
YOU CAN BE LOYALTY THE HOA “CONSTITUTION” — THE CC&Rs — OR THE US CONSTITUTION, BUT YOU CAN’T BE LOYAL TO BOTH.

Col. Jessup shouting to Lt. Kaffee (A Few Good Men).
YOU CAN BE LOYALTY THE HOA “CONSTITUTION” — THE CC&Rs — OR THE US CONSTITUTION, BUT YOU CAN’T BE LOYAL TO BOTH.
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.


Events at the HOA featured in this study continue to unfold. The board has been silent since the Dec. 16 email from the president. A question was addressed to the Executive Administrator of CAM asking whether or not she was in charge. The general manager (GM) had quit and there was no announcement whatsoever as to the status of CAM. She was listed on the staff of CAM, without any statement regarding the status of the GM.
In 2 days of this writing, Dec. 30, the SCG will hold a planned Q & A session where members can ask the BOD questions, sort of a townhall meeting. Would you advise the BOD to hold the meeting? If so, how should it deal with hard questions concerning its past performance?
January 2022 will see the campaign and election of board directors, and the right of members to write-in names of members not approved or subject to the SCG election and voting process. The BOD controls and approves the selection of “candidates” and regulates their campaign procedures — can they speak at clubs, what can be said, failure to attend a meeting disqualifies a potential candidate, etc.
A majority of the directors will be elected at this time, as a result of resignations, permitting an organized membership to gain control of the board. As in the case of our national politics, should the old BOD deny the results — as it seems to be the posture it is taking — or accept the reality of the vote?

George K. Staropoli
December 22, 2021
“Pay no attention to the man behind the curtain”
(Wizard of OZ)
As applied to HOA-Land, the “man” is the BOD manipulating and controlling the images, propaganda, and marketing designed to placate the wants and desires of the members.
The task
For this case study, you have been engaged to advise the BOD as to its conduct in deciding these difficult and controversial issues, and are free to comment on any or all aspects of the problem situation. What will you advise? The value of your recommendations lies in the quality of your supporting arguments.
Put your management/BD skills to work and join the study. It is very important for the learning process to share your recommendations with others here, and to accept their constructive criticism. You can reject, modify, or remove your recommendations. This approach sharpens your thinking and helps you make a more solid case for HOA reforms.

What are we talking about when we hear “I live in an HOA” or “what are my HOA fees?” Allow me to clarify some important concepts and definitions that I have employed to help in understanding what we are really talking about.
When I speak of restructuring the HOA, I am referring to the authoritarian, undemocratic body functioning outside of constitutional protections, and making it a democratic government subject to homeowner constitutional protections.