Author’s note: This commentary is a follow up to my Dec. 2021 – Feb. 2022 “mgmt case study” posts relating to an Arizona HOA. Its board has continued its path with a few suggestions on open meetings and videotaping the board meetings. The series starts by entering “case study” in the Search box in the left panel. This is a reorientation and educational process, but the board is not yet amenable to hear the whole truth about HOAs.
Resource: Towe Lifestyle article: SCG community is a business
“[The board of directors] bring an extraordinary level of imagination and management expertise to bear on the very complex problems of running a sophisticated and demanding business. No sugar coating either. The men and women serving you on the BOD represent you and your interests with a sincere desire to make Grand the very best place it can be.[1]
I beg to differ with this statement on several issues that I see as PR and more BOD propaganda.[2]
First, SCG is not a business! Did you sign a commercial UCC contract or residential real estate contract? Enough said! From whence does this mistaken belief arise. In my many years of research I found it to be from long term indoctrination and acceptance of the teachings of the CAI School of HOA Governance[3], my categorization, of CAI’s special interest agenda. There is strong evidence supporting the view that CAI dominates SCG policy.[4]
In 2015 the board claimed in its IRS tax-exempt application that SCG was a nonprofit social welfare organization and was not applying for exemption as an HOA. There are no grounds, no authority in the governing documents, then and now, to make such an assertion. In the application, the president informed the IRS that SCG provides services “benefitting both the Sun City Grand community and the surrounding community.” You will not find that “and surrounding community” claim anywhere else but on the IRS application.
Second, the article contains a number of vague and confusing assertions not supported by the facts, and contradict such attitudes found in other BOD publications by other SCG officials. One gets a sense of Who’s in charge? Additionally, it raises the question of board competence, which can be found in recent actions and decisions by the BOD[5]. Puffing can be found in the article:
- “an extraordinary level of imagination and management expertise”
- “to make Grand the very best” contradicts the Vision statement that proclaims SCG is already the best, “Grand is the premiere age-restricted adult association.”
- “sophisticated and demanding,” which is undoubtedly demanding but a sophisticated” business? Are the demands on the board of directors beyond its pay grade? Does the public view town managers, SCG equivalent to CAM, viewed as a business? Does the public view town councils, the equivalent of the SCG board, viewed as a business?
Finally, “[Directors] on the BOD represent you and your interests” is misleading and contradicts the law and SCG policy that the board owes its obligations to the HOA “person.” The 2021 Candidates Package paragraph “9a”, makes my point. “Directors work first and foremost for the best interests of the Association.” This authoritarian tone is contrary to our democratic values. This attitude reflects its policy to run SCG as a business, and at times a for-profit business.
I’m left with who and what is SCG? The governing documents, like the US Constitution make that clear; yet the board hasn’t seemed to accept this foundation for its authority to act on behalf of the members, and that’s not to be a business. It has failed to address two top level management concerns of boards of directors: What is our business and what should it be?
As I detail in “CAI dominates SCG” (see link below), the board has a duty of care and a fiduciary responsibility to the members. Unless the BOD does an about face in regard to its CAI legal advisors, members can expect more of the same in dealing with several serious legal matters that are on the horizon.
Notes
[1] Robert Towe, Board Director, “Our Great Community”, Lifestyles, Oct. 2022.
[2] “Propaganda” is false statements, half-truths, omission of facts, and misrepresentations designed to produce a favorable attitude and mindset in the targets.” The BOD provides illusions of happiness and approval, and are supported by the majority of their members; its messages use propaganda statements — disinformation consisting of false, misleading, half-truths, omitting facts, and fear.
[3] CAI School of HOA Governance: The foundation and principles of the School can be traced back to CAI’s Public Policies, The CAI Manifesto (its 2016 “white paper”), its numerous seminars and conferences, its Factbooks and surveys, its amicus briefs to the courts, and its advisories, letters, emails, newsletters, blogs etc. I have designated these foundations and principles collectively as the CAI School of HOA Governance.
[4] Read the domination argument paper at: CAI Dominates SCG.
[5] See Wizard of SCG.
HOA Constitutional Government 