Tag: covenants

Georgia court: A Milestone for Fair and Free Elections

Jade Whitter posted  comments in Home Owners Association (HOA) Information (Oct. 27, 2023, FB)[1], on a Georgia appellate case [2] concerning the fundamental right to fair HOA elections. At issue here is the imposition of a quorum on board elections although the documents were silent on a quorum requirement.

Whitter wrote,

“A Milestone for Fair and Free Elections. The Court’s ruling specifically eliminates the draconian measures that obstructed free and fair elections, namely the use of a quorum as a prerequisite for a valid election. This is significant because ‘lack of quorum’ has been used to invalidate annual elections and keep many of the same individuals serving on the Board.”

The homeowners’ attorney praised the homeowner group,

“It should not be taken lightly the dedicated grass roots efforts that it took to bring this coalition of homeowners together under a unified call for fair and representative elections. I am in awe of the W.E Concerned Homeowners’[3] leadership team that was able to coordinate this effort.”

While in the public domain there are no quorum requirements, there is a downside to no HOA elections quorum. A small, highly active and united clique can take control of the HOA where there is general apathy among the homeowners, or their conduct can be described as a cult following – the HOA can do no wrong. BEWARE!

I cannot stress how vital free HOA elections are to a democratically run HOA where constitutional and fundamental homeowner rights need protection. I commented on fair and democratic HOA elections 0n 2 occasions.[4]

“I cannot overstate the profound damaging effect of the boilerplate CC&Rs covenants – the HOA-Land fair elections doctrine — that define the highly inadequate process and procedures alleged to be fair elections and approved by the member. In a democracy, the fair elections doctrine is the means for the expression of the will of the people and the consent to be governed by the HOA’s members. It is the fundamental basis for a valid consent to be governed. Unjust BOD biased election procedures deny the legitimacy of the HOA-Land doctrine.”

“HOA members have been repeatedly told that they can change things in their HOA by voting for board members and even by changing the governing documents; that HOAs are democratic because members can vote to make these changes happen.  Without fair elections procedures that contain enforcement against HOA board wrongful acts, including retaliatory acts and intimidation by the board, voting in an HOA is a mockery of democracy. You are being conned!”

[1] See Home Owners Association (HOA) Information.

[2] Willis Et Al. V. Water’s Edge, A23A0868 (Ga. Ct. App.), Decided: October 24, 2023.

[3] Concerned Homeowners is a public FB group.

[4] See in general, Reorienting the HOA board – fair elections and HOA Common Sense, No. 5: Democratic elections.

 

HOAS as good corporate citizens & covid-19

David Kahne, a Texas attorney fighting for homeowners who had authored the AARP member Bill of Rights policy statement,[1] is seeking just treatment for homeowners in HOAs with respect to covid-19. Kahne seeks a reduction in assessments like the state and local government are doing, “Kahne believes HOAs should refund homeowners part of their dues.”[2]

covid-19With state mandated closures and loss of income to members just like many other non-HOA persons, what is your HOA doing to be a good corporate citizen? The plea from HOA boards is that they need the money and how can the HOA survive as if it warranted special dispensation. Of course, most members fail to realize that in between all that legalese in their CC&RS or declaration, they have pledged their homes as security for payments to the HOA.

Now what about all those lofty covenants about “in the general interests of the members” and “to provide for the health, safety, and welfare of the members”?   Seems empty to me if they do not act accordingly and reduce assessments like a good government should in a crisis like covid-19.

Notes

[1] A Bill of Rights for Homeowners in Associations, AARP HOA Bill of Rights, David Kahne 2006.

[2] Homeowners want HOA dues refunds for amenities they can’t use”, Beanie, HOA Reform Coalition (May 2, 2020).

Will Arizona allow HOA covenants to dominate state laws?

Jan. 3, 2015 Dear Arizona Senate President Andy Biggs,

You have always been a firm supporter of OAH adjudication of HOA disputes, and I find myself asking, once again, for your support to maintain the integrity of the Office of Administrative Hearings.  The opposition of CAI (“The Community Associations Institute (CAI) is OPPOSED to [the 2014] Senate Bill 1334 (HOAs; hearings; attorney fees).)” to this bill is appalling and unconscionable since the bill attempted to prevent HOAs from taking a giant step toward the status of an independent principality not subject to state laws. (See Establishing the New America of Independent HOA Principalities, 2008)

In its effort to silence Bill Brown, an outspoken critic of his Teravitta HOA government’s policies and actions, CAI attorney firm Ekmark & Ekmark redrafted the CC&Rs in disregard to state law and judicial holdings, as I believe he so informed you.  As occurred with the 2006 OAH enabling act, which was repeatedly attacked by the CAI member firm of Carpenter, Hazelwood, CAI has taken the position that a private contract can override state laws. I am not talking about a surrender or waiver of rights and privileges, but state law!  This is a slippery slope to a more firm status of HOAs independent principalities indeed, without any government oversight.

Such an audacious slap at Arizona’s constitutional system of government cannot be allowed to stand! It is an act violating the constitution as the supreme law of the land. Today, the courts have allowed HOAs to modify municipal ordinances without any state oversight and approval. It is long held doctrine that HOA covenants that are unconstitutional or violate public policy, or that are unreasonable or arbitrary and capricious are invalid and notwithstanding (See Sec. 3.1, Restatement of Property: Servitudes). Now, this doctrine has been intentionally and deliberately challenged and ignored by attorneys of the business trade entity, CAI. This brazen act, placing Arizona on a dangerous slippery slope, is in defiance of the Arizona Constitution and state laws and cannot be allowed to stand.

 The bill can be resubmitted as is with a small change to the last paragraph.

 “41-2198.01.

“J. NOTWITHSTANDING ANY PROVISION IN THE CONDOMINIUM DOCUMENTS AS  DEFINED IN SECTION 33-1202 OR THE PLANNED COMMUNITY DOCUMENTS AS DEFINED IN SECTION 33-1802, THE ADMINISTRATIVE HEARING OFFICER AND THE DEPARTMENT MAY NOT MAKE AN AWARD OF ATTORNEY FEES TO THE ASSOCIATION  ANY PARTY IN ANY MATTER FILED7 PURSUANT TO SUBSECTION B OF THIS SECTION.”

(Link to SB 1334 (2014): http://www.azleg.gov/legtext/51leg/2r/bills/sb1334s.pdf.)

FYI, I provide the following links to materials and supporting documents of CAI’s hypocrisy, saying one thing to the policy makers and another to the public.  Please read them, for they reveal CAI’s policy that HOAs should be treated as independent principalities while seeking legislative support for this secession from the State of Arizona.

  1. CAI: the HOA form of government is independent of the US Constitution
  2. Will the real CAI standup: its contradictory beliefs, pronouncements and goals
  3. Misrepresentation: CAI comes with unclean hands

Please sponsor this modified SB 1334 in the name of justice and the Constitution of the State of Arizona. I thank you for your earlier support of HOA reform bills. Respectfully, George K. Staropoli