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CC&R question

First off I want to thank all those that run this site and have answered my previous questions. I have several questioon all related to the same issue. I will try to make short as I do not want to take advatage here. We are a small community with 36 owners. We are trying to update our CC&R’s to bring them up to compliance. I have been using all your resources and tools you suggest and am following the 2020 Arizona revised statutes Title 33 chapter 19. They are over 35 yrs old. We are trying to do all the initial changes, updates and corrections ourselves before being reviewed to limit our expenses. So my questions are as follows and I try to address our main concerns.

1. We can impose lesser rules as long as they don’t conflct with the statute IE we have that we can up our
assessment by 15% and I read it can be 20%

2. Our bylaws state that the HOA board can remove and member with cause with a majority board vote. (
which we are looking to do) I read that a petition has to be filed with the board to do so and 25% of qualified
voters must sign it.

3. Our bylaws state in order for a non board member to talk at a board meeting they have to notify us in
advance and approved and than put on agenda to do so.

4. Lastly, our we allowed to have a raise of hands vote at our annual meeting if item was on agenda to be voted on. And if yes we need a quarum of all elgible votes or just the majority of those present.

I appriciate any answers and advise to these issues. Also any other advise you have for us to update our CC&R’s and bylaws. As a homeowner I want to make sure we follow the laws and don’t rule with an iron fist and as a board member want to make sure we are current with the laws and statutes so we have a leg to stand on.

Thank you once again for all your assistance.

Julie

1 Response

  1. dennisl

    Julie,

    Let me first apologize for missing this post earlier. I’ll answer this assuming you are a planned community.

    1. You can apply any rule that is consistent with the restrictions in the declaration, you cannot create any rule that restricts the use of the private property or the behaviors of the members that is not specifically identified in the declaration. You can apply any rule you want for the use of the common property. As for assessments your obligation is to prepare a budget based on what you believe to be necessary to cover the short term maintenance and operation of all common property and to cover the operating expenses of the association and provide for contributions to the reserve fund dictated by your long range plan. That budget will then be the basis for the assessment and must be within the limitation for assessment increases provided for in the declaration. The state law kicks in as a final threshold and says that if you increase the assessment greater than 20% above the prior year you need approval from the members to do that. Never start off with a planned assessment increase then develop a budget to spend that amount, you will be sued and the board could be individually liable for breach of fiduciary duties to the association. This is not a game do it right and for the right reason. This does not have to be hard.
    2 Under Arizona Law a duly elected board member can be removed by resignation of by a recall vote from the members. there is nothing that states that another board member can’t initiate a recall petition. A board member cannot be removed for any reason by the rest of the board.
    3. The open meeting laws for planned communities are contained in ARS 33-1804 you should try reading it. The board must allow members to speak on any issue on their agenda before they vote on that issue. If you have an open forum time period you can request that members submit issue they want to discuss or bring up to you. The more you encourage member participation in your meetings the the greater sense of community and harmony you will have in that community. If you want to deny any one speaking you can but it is against the law and you will be subjecting the association to law suits to enforce the law and you will also create a sense of oppression and that the board does not care about what the people think attitude in your community. The board gets what they sow. Tread lightly and respectfully and your community will be the better for it.
    4. If you have a quorum of the members as defined in the bylaws physical at the meeting that quorum can vote on anything that was not included on the absentee ballot sent to everyone in the community. A majority present under those conditions decides the issue. As long as it is not something requiring a majority or super majority of all members in the community to approve. Changes to community documents are typical examples. How you hold that vote is up to you. If you need even one vote from the absentee ballots to satisfy quorum than you cannot act on any issue that was not identified on the absentee ballot.

    Dennis

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