Tag: enforcement

why shouldn’t HOA directors be held for criminal activities if the shoe fits?

The latest AZ-CAI chapter’s Call to Action, Apr. 5, 2012, objects to the AZ bill, HB 2160, that would make violations of the HOA elections procedure a Class 1 Misdemeanor. No reason s offered as to why not. The bill clearly states that only if the violation is an intentional violation, which is only fair considering the importance of fair and just elections in a democratic society. And aren’t we told by CAI that HOAs are the model of democracy?

Again, CAI resorts to scare tactics by focusing on the penalties under a class 1 misdemeanor. And that the fines, that can be as high as $20,000 for the HOA corporation, would be passed on to the homeowners. What an excellent approach to get member involvement, don’t you think, CAI? BTW, the Call does point out that the bill is to stop “electioneering,” you know, to stop the political machine interference so the people can “throw the bums out.”

The “we are poor volunteers” doing community good argument appears, but the presumption is that they are indeed doing good by opposing elections reforms. It ignores the fact that the bill addresses intentional acts by the political machine running the HOA for its own personal agenda. And the “death of the HOA” argument if we hold directors accountable for their acts is there, too. Well, should we support corrupt and incompetent entities used by a few for their personal agendas, entities that can ruin a member through fines and cruel foreclosure?

Finally, in an admission that not all actions by directors are covered by insurance — surprise, surprise – the fear of no insurance coverage is used. You know, it is not the acts of the directors themselves that is the precipitating cause of such refusals by insurers. No, not the directors, us poor volunteers.

I can hear those directors saying, “Damn! And we had it so good not being held accountable. Gee, I don’t think HOA life is such a good idea now that the “free ride” is over.”

I am well aware of the frequently used techniques that amount to legalized extortion by the HOA or its agent, the management firm. The 2 common instances are forcing the member to talk to the HOA attorney, and to sue on unsubstantiated and frivolous allegations. In the first instance, the member who is given notice of unpaid assessments but does not receive a detailed accounting of the alleged debt. So he rightfully asks the HOA for a statement of his account, not provided by the attorney, but is told to talk to the attorney. Why?

If the manager of president is not sure, he should contact the attorney on his dime and not the member’s dime – attorneys costs are charged back to the member. This is a legitimate request for corporate records and not attorney-privilege concern. And the HOA attorney knows this.

The second instance is the notice of a violation by the  attorney on HOA statements that would fail “reasonable cause” tests.  These allegations are acted upon without any attempt to “check out” the HOA charges, as it must necessarily be concluded, violating R. Civ. P. 11(a), “that to the best of the [attorney’s] knowledge, information, and belief formed after reasonable inquiry it is well grounded in fact and is warranted by existing law.”

The attorneys know that in the vast majority of these cases the homeowner will not go to court and either pay, if he can, or take the default judgment by the court. One JP Court judge told a homeowner in such a case that, “Normally, these type of HOA cases are default decisions . . . “ I would say that that amounts to legalized extortion with the attorney cooperating and looking the other way. See Code of Professional Conduct below).

(Sadly, Arizona bills with meaningful penalties against the HOA failed: SB 1240 would have awarded triple damages against HOA for selective enforcement actions; HB 2455, would have held the directors directly personably liable for member attorney fees; and HB 2731, would have held directors personally liable for lawsuits not made in good faith. They will be back next year, and the year after until put into law.)

HB 2160, elections reforms with meaningful penalties, gives the member a solid footing to take away control of the HOA by political machines and rogue boards. It awaits final votes.

Rules of the Arizona Supreme Court, Part V, Regulation of the Practice of Law, D, Lawyer Obligations, Rule 42.

1.2 (d) A lawyer shall not counsel a client to engage, or assist a client, in conduct that the lawyer knows is criminal or fraudulent

1.13 (b) If a lawyer for an organization knows that an officer, employee or other person associated with the organization is engaged in action, intends to act or refuses to act . . . that is a violation of a legal obligation to the organization, or a violation of law . . . .

NEW HOA DOCUMENTARY FILM, THE HOAX

On behalf of Rodney,

Hi there, I’m Rodney Gray. I am a former U.S. Marine, an actor and a filmmaker, who is currently directing and producing a feature documentary on the homeowners’ association (HOA) industry for submission to film festivals and future distribution, but also as my MFA production thesis at the University of North Texas.

My new film, The HOAX, follows an investigative reporter, homeowners, and HOA reform activists as they reveal shocking evidence of financial and psychological hardships experienced by people throughout Texas and Nevada. A few of these people, including the filmmaker, have been the subject of adverse actions from the very HOAs created to help them.

Please feel free to visit our websites to find out more information, get updates and watch the teaser trailer.

  The HOAX Movie Website:  http://thehoaxfilm.com/

The HOAX Trailer Tease and Campaign Website: www.indiegogo.com/thehoaxfilm

 

Spread the word and please share these links. Help us bring injustices into the light.

 

Best to you all,

Rodney

 

 

The public policy of the states with respect to HOAs

In order to understand what this Commentary is addressing, here is a general definition of “public policy.” First, “public interest” refers to the “common well-being” or “general welfare.” “Public policy” is generally defined as,

A principle that no person or government official can legally perform an act that tends to injure the public.

Public policy manifests the common sense and common conscience of the citizens as a whole that extends throughout the state and is applied to matters of public health, safety, and welfare. It is general, well-settled public opinion relating to the duties of citizens to their fellow citizens. Public policy enters into, and influences, the enactment, execution, and interpretation of legislation.

Yet, with respect to HOAs we find that, over the years and in almost every state, the acts and actions, the absence of acts and actions, and the statements and communications by state legislators, government officials and court decisions have created a pro-HOA public policy. I summarized this policy as,

The Public Policy of the states with respect to Homeowners Associations.

1. To protect and defend the HOA;

2. That “you are on your own,” and not inform those now living in HOAs, or about to buy into an HOA, that they will not be protected by the state against HOA wrongs and that HOA violations will go unpunished;

3. To allow HOAs to violate contractual provisions and state laws, as such lawlessness does not constitute an issue of public interest warranting state involvement and protection;

4. To ensure the survival of the HOA, even if it requires the denial of rights and freedoms enjoyed by those not living in HOAs;

5. To protect and defend HOAs as if they were necessary for the security of the state, warranting the suspension of constitutional protections.

60 minutes legal analyst pooh-poohs HOA negligence in Trayvon slaying

CBS legal analyst, Andrew Cohen, wrote in the Atlantic,

 ”The homeowners association? What? At the same time that Sooner was trying to rehabilitate Zimmerman, the Martin family attorney, Ben Crump, was suggesting that Zimmerman’s homeowners association may have some civil liability here because it reportedly encouraged residents to coordinate their “neighbor watch” concerns with Zimmerman. Crump would have to prove that this was negligence. Good luck with that — and bring on the depositions!”

“Andrew Cohen – Andrew Cohen is a contributing editor at The Atlantic and legal analyst for 60 Minutes. He is also chief analyst and legal editor for CBS Radio News and has won a Murrow Award as one of the nation’s leading legal analysts and commentators.”

Trayvon Martin Case: Zimmerman Builds His Defense

Just goes to show that this legal expert dismisses questions of negligence by the HOA, but does he really know about what goes on in HOAs, or the HOA respondeat superior failure to oversee agents. I will hazard a guess that what he has learned about HOAs comes from the propaganda by “Great Educator” and national HOA lobbyist organization, Community Associations Institute, CAI.

Mr. Cohen, with all due respect, please read the other side of the issue with HOAs, the Truth in HOAs Disclosure Agreement, and  Should the Trayson family sue the HOA?

PS. Twitter notice linked to Mr. Cohen at @CBSAndrew

Trayvon — Zimmerman reported to be acting for HOA

This Philly.com AP report by Mike Schneider has the evidence. Why is national TV still avoiding the HOA’s role in this slaying?

The homeowners association’s February newsletter said that Sanford police had beefed up patrols in the neighborhood and that officers on bicycles were making random checks of front yards and backyards. It was not clear how big the neighborhood watch was, but Zimmerman was the dominant force.

“If you’ve been the victim of a crime within the community, after calling the police, please contact our captain, George Zimmerman … so we can be aware and help address the issue with other residents,” the newsletter said. It added that the neighborhood watch group was looking for more participants at its monthly meetings.

A vice president of the homeowners association didn’t return a call Wednesday.

See Phily.com for the complete article.