Tag: justice

HOA Common Sense, No. 7: boards can do no wrong

HOA Boards can do no wrong, No. 7

In shocking contrast to our common sense and all that has been said about the need to protect the people from government, state legislators see no need for effective and meaningful enforcement that average people are transformed into angels when they become board members.  James Madison must be in a rage, wherever he may be, at this slap at his advice that, “If men were angels there would be no need for government.”

State legislators have said that the complaining HOA member signed a contract and is now trying to get out of it because he now thinks it’s a bad contract, and that he will not support any such legislation. Furthermore, anyone who didn’t read the contract or get a lawyer is not too smart and that he, the legislator, would have never done that.  What do you think of that attitude in light of the above papers 3 – 6?  And don’t forget that you are being held to have agreed to be treated in such a demeaning way by your elected officials.

Where are the fair and just laws argued for in paper No. 4?  They are not there!  Instead, we have special laws for special entities, the HOA, without a necessary and compelling government interest to deprive citizens of the rights and freedoms.[i]  What a travesty of our American way of life! 

You may ask, What for?  The answer is obvious: for the survival and acceptance of a defective legal scheme that seeks to impose authoritarian governments on unsuspecting people. If boards and offers are to be held accountable, who would volunteer?  Well, why not pay them a salary so accountability can be demanded?  WHAT!!!  If they are going to be held be paid and held accountable, then members have a right to demand qualified board members and not any ole body who would like to be on the board.

Wait!  Wait! I can see readers recoiling in horror.  The horror . . . the horror . . . (from the movie Apocalypse Now!).  Consequently we are told that we must accept the lunacy that all volunteers can do no wrong and if they do, well, that’s your fault for electing them!  And let’s not forget that the board has hired hands to protect them – the attorney and manager.  At your expense.  The homeowners pay for the board’s wrongful acts.  

So, why aren’t the members more involved in watching over the acts of the board?  Well, maybe it would help if the laws backed the members up with effective and practical means to enforce HOA wrongful acts; otherwise it’s just an exercise in futility.  The game is rigged in favor of these independent principalities!

But those living in HOAs must share the blame for this state of affairs. They have repeatedly failed to unite in an organized common cause to produce intelligent legislation that addresses these fundamental HOA defects.[ii]  CAI in Arizona made that clear when it told the legislature that only the stakeholders produce meaningful bills; the homeowners just raise a multitude of personal issue bills.[iii]

And so, in all practicality considering this state of affairs, the board can do no wrong.  Get used to it!

“If there is no penalty [for] disobedience, the resolutions or commands which pretend to be laws will, in fact, amount to nothing more than advice or recommendation.” (Alexander Hamilton, Federalist #15)

HOA Common Sense, No. 6: Fair and just hearings

Fair and just hearings, No. 6

What is meant by “fair and just hearings”?  The HOA attorneys tell you it’s “after notice and an opportunity to be heard” as found in almost all CC&Rs and in the vast majority of state HOA laws. This simple statement is a contractual provision and law as applied to HOAs, but it is not what the US Supreme Court holds as procedures meeting the Constitution’s and the 14th Amendment’s due process requirements.  HOA members have been shortchanged!

As a private entity, HOAs are not subject to the Constitution and are not required to establish justice, which is a goal not found in any CC&Rs ‘constitution,’ but found in the Preamble to the US Constitution. Was this important fact explained to you when you bought into an HOA with its dream home?  Why not?

US Appeals Court Judge Henry Friendly in his well-regarded article, “Some Kind of Hearing,” generated a list that remains highly influential, as to both content and relative priority:[i]

1. unbiased tribunal [independent ‘judges’]

2. notice of proposed action and grounds asserted for it [document showing all the rules]

3. opportunity to present reasons why should not occur [defense of allegations]

4. right to call witnesses

5. right to know opposing evidence

6. right to have decision based exclusively on evidence presented

7. right to counsel [especially if HOA attorney is present]

8. making of record

9. availability of statement of reasons [public awareness of defense]

10. public attendance [transparency]

11. judicial review [appeal to civil court]

 

I’ve inserted annotations as applicable to the HOA version of justice.  As you can see, members are being shortchanged by HOA attorney/lobbyists who influence and dominate state legislatures, and who write and rewrite the CC&Rs and bylaws.  HOA kangaroo courts make homeowners second class citizens, and their foolish appeals to their HOA attorney go nowhere, because no one told you that he represents the board, not the members.  You know, like management vs. employees.

And since there is no legal obligation of the HOA to establish justice, providing for some form of public defender equivalent falls on deaf ears.  The HOA wins in this lopsided “playing field” since it has the money to hire attorneys to legally maneuver the system to make it costly for the homeowner to complain.  And don’t forget the public ostracizing of members who complain: they are costing you money; they are not good neighbors. Don’t forget that there’s no opportunity for the homeowner to answer in the same media as used by the HOA – the newsletter, board meetings and website.

Yet, government interference to protect your rights as citizens is violently frowned upon by HOA members.  Why?  It doesn’t make sense, doing nothing about your loss of protections.  For what?

[i] Henry J. Friendly, “Some Kind of Hearing,” 123 U. PA. L. REV. 1267 (1975).

HOA Common Sense, No. 5: Democratic elections

Democratic elections, No. 5

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.  Well, does that make real sense when we know that countries like China and Cuba allow their people to vote? Yes, the people are allowed to vote, but no one would think to call these countries democratic.  Use your common sense!  You are being conned!

HOA members should read my discussion of the California case holding the HOA to have violated the law on fair elections procedures in Wittenberg v. Beachwalk HOA.[i] Such activities as only containing the board’s view of candidates, continuing holding elections until the board wins, and not allowing equal access for ‘town hall’ meetings by members.

Why is it that this country would participate in seeing that fair elections take place in other countries, but do nothing for the 23% of the American population living in HOAs?  While a few states like California have detailed statutes dealing with HOA elections, most do not have an oversight entity watching the elections as undertaken with these foreign country’s elections.  Worst of all, generally it is the HOA attorney or HOA manager who tally and report on the voting, but both cannot be seen as independent observers or neutral parties.  They are both agents of the HOA and not the membership.  That is like having a business’ attorney overseeing union elections.

Furthermore, the defenses of voting the bums out and changing the governing documents are without merit. These defenses reflect the erroneous implicit attitude  that HOAs are the same as public entities.  They are not!  The HOA’s “constitution and laws” are contained in an agreement between a single member and the HOA.  To say that “you”, a single member, can change governing documents or vote the bums out misstates the law and the single member’s ability or right to accomplish this goal.  The member needs the assistance, the cooperation and votes of other members in order to accomplish these changes. 

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.  Is this HOA government better than public government?  Common sense tells us no!

HOA Common Sense, No. 4: Consent to be governed

Consent to be governed, No. 4

When pro-HOA supporters are pushed to justify the conditions of living in an HOA they usually end up with: “you agreed to the contract,” “if you don’t like it move out,” or “remaining in the HOA means acceptance to be governed.”   Here I will show that these defenses lack merit.

First, the application of contract law to the CC&Rs agreement reveals the many invalid aspects of the CC&Rs as a bona fide contract.  It is obvious from a simple review of contract law.  Yet, courts have held that the CC&Rs are a contract or are to be interpreted as a contract, and have even analyzed the meanings of CC&Rs in the same manner as a contract. But, the courts do not question the validity of the CC&RS contract with respect to contract law.  The courts resort to equitable servitudes law, which simply requires the acceptance of a deed in order to bind the home buyer to the CC&Rs sight unseen.

This apples and oranges approach doesn’t make sense, does it?  Unless, of course, the motivation is to coerce acceptance of the HOA legal scheme by violating the Constitution’s requirement for “the equal protection of the laws” for all citizens. A common sense approach for a just and fair contract says that this is all wrong; that applying servitudes law to coerce private government acceptance makes a mockery of the Constitution.

Second, for illustrative purposes, let us look at current events in regard to Obamacare, where the people are discovering what was said in support of Obamacare is turning out to be not so true.  That certain claims were misrepresentations and half-truths, which were obviously made to induce acceptance of Obamacare.  However noble the ends of Obamacare the means to achieve it are deplorable. However noble the ends served by the bill that Arizona Representative Michelle Ugenti may have believed the deliberate violation of the Arizona Constitution was not an acceptable means.

This is the same scenario that was played out in the mass merchandising of HOAs by the stakeholders, including state legislatures. This scenario holds that the beneficial ends served by HOAs justify the false and misleading means to obtain acceptance.  A society that accepts such conduct is dysfunctional and does not build a better community, but destroys it.  Think about it!

If indeed HOAs are the next best thing to Mom’s apple pie, wouldn’t it be sensible for the proponents of HOAs to put the matter to a test. Where is the full disclosure, as contained in the “Truth in HOAs Disclosure,”[i] of material facts for example, regarding HOA regimes?  If there is true consent by home buyers, why is CAI afraid to conduct this poll or state legislatures to draft legislation that requires such a disclosure?  Common sense tells us that this is the just and ethical thing to do, unless there is something to hide.

Third, rather than proceed as suggested above, the faithful HOA defenders have resorted to the mantras (I use this term to indicate unsupported and irrational dogmatic statements) such as “move out” and “HOAs are not for everybody.”  The argument that remaining in the HOA amounts to consent to be governed is without merit.[ii]  Aside from the ethical questions presented by this argument, it ignores the charges of fraud and misrepresentation to induce home buyers to accept the HOA agreement. It ignores the failure to pass judicial scrutiny[iii] for the waiver or surrender of constitutional rights. In other words, the HOA comes with unclean hands, which greatly weakens the legitimacy of its position to demand consent and that to remain in the HOA is full consent to all that the HOA does. 

For example, where’s the common sense to expect obedience to the rules and regulations when no notice has been provided of what constitutes a violation?  Unlike in the public arena where all violations of the law are made public (publicized in code books, online, etc.), not having knowledge of the law is no defense for a lawbreaker.

I find it hard to believe that the vast majority of HOA members fully consented to be treated as second class citizens resulting from the lack of Constitutional protections that they were told, since childhood, are guaranteed to all Americans.  I find it hard to believe that most members did not have a reasonable expectation that the state would not protect them and not provide meaningful enforcement against HOA board lawbreakers, or to believe that ex post facto amendments were valid, or to believe that the HOA would engage in a wide range of questionable activities under its grant of broad powers.

But this is what the pro-HOA special interests want you to believe!  That the good people of America seek unequal status, and prefer it (all those CAI surveys).   This is a disparaging and belittling attitude toward the good people of America, isn’t it?  It is an insult!

Obedience in conscience to a government requires fair and just laws. In fact, the legitimacy of a government is based upon promulgating fair and just laws.[iv]  It is the fundamental basis of the social contract between the people and the government.  And it is common sense to expect the same from private HOA governments.

Homeowners in HOAs must demand equal status with non-HOA homeowners and demand that the government justify why there should be unequal treatment and the loss of their rights, freedoms, and privileges and immunities under the Constitution.  Homeowners in HOAs must demand justifications that will meet and pass judicial scrutiny.

 

References

[ii] See Contracts, the Constitution and consent to be governed that addresses public government, yet applies to HOAs.

[iii] The Supreme Court has set tests for the constitutionality of legislation depending on the nature of the rights being violated. The most demanding is a necessary and compelling justification for the law, and that no other alternative is available, to a simple demonstration that the law serves a genuine government interest.

[iv] Prof. Randy Barnett wrote; “A constitution that lacks adequate procedures to ensure the justice of valid laws is illegitimate even if it was consented to by a majority … constitutional legitimacy can even be seen as a product of procedural assurances that legal commands are not unjust”. “A law may be ‘valid’ because it was produced in accordance with all the procedures required by a particular lawmaking system, but be ‘illegitimate’ because these procedures were inadequate to provide assurances that a law is just”. (Restoring the Lost Constitution, Princeton Univ. Press, 2004).

SB 1454: AZ House views legislator misconduct as “another day at the office”

In response to today’s Arizona Republic article, More bills on HOAs expected next year, by Caitlin McGlade I posted the following comment —

The real issue here is the ethical conduct of a legislator who violated the constitution to get a  special interest bill put into law, her 3rd try.  “I have a responsibility to the stakeholders” Ugenti told the Senate GOV committee (‘stakeholders’ are the spcial interests and does not include homeowners). And, the subsequent “no harm, no foul” attitude of the House of Representatives to treat Ugenti’s conduct as just another day at work.  WRONG!  See details at https://pvtgov.wordpress.com.

“Ethics” deals with right and wrong, and the House is saying this was not wrong by not pursuing disciplinary action per House Rule 1, because it happens all the time.  Is the Legislature saying it is above the law, above the Constitution? That it can do as it pleases?  Recall the anger that erupted regarding the former State Senator Bundgaard highway incident where disciplinary action was sought. He resigned instead of testifying before the Ethics  Committee.  But, not here with a direct violation of the Arizona Constitution.

To clarify the article, I was following Ugenti’s failed forerunner bill, HB 2371, that was incorporated into SB 1454 thereby making it unconstitutional.  It was done on the last day of the session in the wee hours of the morning (the session ended at 12:59 AM). By hiding the “HOAS” subject from the title it prevented  the public from reacting to the bill.  And there was time to write Gov. Brewer before she signed it.

Many believe that there was some good and some bad in the bill, but sadly its invalidation was the result of a direct violation of the law.  The end does not justify the means.

With its failure to discipline Ugenti, the Legislature cannot claim to be a legitimate government.  Political scientists and philosophers maintain that the legitimacy of a government rests in fair and just laws, and not in the illusion of justice. 

In his analysis of Machiavelli’s The Prince, Hadley Arkes wrote,

“The founders understood that the principal mission of government was to secure people in their natural rights — to protect them against the lawless private thugs as well as of ill-intentioned legislators.”