Dennis,

At this week’s open Board meeting, Tonto Forest Estates HOA has the following agenda item:

“BLANKET RESOLUTION for Attorney Authorization to Defend Against ALL ADRE Complaints.”

Our Board president PREVIOUSLY told members that using the HOA attorney in ADRE cases could cost approximately $6,000 per day, “whether the ruling goes in our favor or not.” He also said it was more fiscally sound for Board members to defend ordinary ADRE cases themselves and reserve attorney involvement for something “much more meaningful.”

NOW the Board appears to be proposing THE OPPOSITE: blanket authorization to use paid legal counsel for ALL ADRE complaints, big or small, even where the Association stands to gain nothing financially and attorney fees are non-recoverable. That looks less like a policy drafted in the HOA’s best interest and more like one drafted to create a steady stream of billable hours for Maxwell & Morgan.

This also seems like an end-run around ARS 33-1804: the Board takes one vote now, then avoids deciding future ADRE litigation and attorney-spending decisions in front of the members, case by case, with member input before each vote.

Is a blanket authorization like this just reckless spending and fiduciary irresponsibility? Since the HOA typically stands to gain nothing “win or lose,” does it really make sense for the HOA to spend tens of thousands of dollars on attorneys for simple OAH proceedings against pro-se homeowners?