AZHOC - Arizona Homeowners Coalition
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ARS 33 1805

Under ARS 33 1805 Association financial and other records. Do the HOA or POA Property Owners Association Board have to provide an Association Member/Owner contact roster upon request to a Member/Owner?

Collections

Hi Dennis, We have one member in collections for nonpayment of assessments for nearly 3 years. In reviewing the Collection firm documents, this is not a good idea. I see why Management companies do this,...
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Flood Insurance

Hi Dennis Is it mandatory in AZ for the HOA of a planned community to secure flood insurance, particularly when there are natural washes running through the land with homes bordering their banks?

Reserve Study

Hi Dennis, I asked our terminated management for a copy of the Reserve Study and was told one hadn’t been done. In reading our CC&Rs it states: “the Board shall obtain a reserve study at...
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  • From Dennis Legere on ARS 33 1805

    Joseph,

    If you asked for a list of members of the association by name as the owner of record for that lot or unit, they would have to provide you access to that list as a record of the association. You can ask for a copy of that listing but could be required to pay up to $0.15/page for that listing as long as the record actually exist. The association is not required to create a record that does not exist as requested, Surely, they have this information is some form but if it not maintained as a single record, they are not required to produce it in that form. They can however prevent you from seeing the contact information such as phone number mailing or e-mail address of each homeowner as personal private information without the permission of each homeowner.
    I know that this is confusing, but the law is simply filled with escape clauses that work against the homeowners.

    Dennis
    Dennis

    Go to comment
    2022/10/05 at 3:57 pm
  • From Brenda Simon on Collections

    And thank you for your generous offer. I will let the board know!

    Go to comment
    2022/10/04 at 10:14 pm
  • From Brenda Simon on Reserve Study

    The only cement walls we have are shared walls with a Lot and any given Common Area. In reviewing our docs this is what I found: “Article III Section (vi) In the case of party fences between Common Areas and Lots the Association shall be responsible for all maintenance thereof, subject to the provisions of the Article X, sections 2 and 3, except that each Owner of a Lot shall be responsible for painting the portion of the party fence facing his Lor or the portion thereof which is not a portion of the Common area.”

    In preparing a Reserve Study does this mean the association is fully responsible for a Lot Owner’s shared wall with the Common Area? Since half if the wall is “private” use I ‘m not clear. (Nothing applied in Article X.)
    Thanks, again.

    Go to comment
    2022/10/04 at 8:45 pm
    • From Dennis Legere on Reserve Study

      Brenda,
      The answer is yes. Provisions like this are included when the developer built the boundary wall in the first place, for consistency and included an easement on the lot to do this. You would need to check out what Article X sections say but otherwise except for painting and surface maintenance on the lot side of the wall the association is responsible for everything else. Walls seldom fall down (unless they were built improperly in the first place) but age gets to everything, but proper maintenance will extend the life of every wall.
      Dennis

      Go to comment
      2022/10/05 at 6:27 am
    • From Dennis Legere on Reserve Study

      Brenda,

      Go to comment
      2022/10/05 at 6:18 am
  • From Brenda Simon on Collections

    Thank you Dennis!
    I do pass the word about self-governing at every chance. I appreciate your guidance – I need to find the answers. The management was heavy handed and not forth coming. Their late fee schedule doesn’t even follow what they provided. The board has forgiven one member’s fees after investigating. This one collections file still needs more review.

    Go to comment
    2022/10/04 at 8:39 pm
  • From Dennis Legere on Opting out of a HOA

    Brian,
    The answer to that question is easy and no it is not possible to remove any single home from an HOA, without terminating the entire HOA and all covenants governing them. To do that would require the approval of a super majority of homeowners specified in the CC&R’s.

    Dennis

    Go to comment
    2022/10/04 at 10:00 am
  • From Brenda Simon on Collections

    Hi Dennis, I don’t have the file with the collections docs. I appreciate your offer to look them over, should I get them. This IS in collections and the management company has been levying fines all this time. I think the Board is considering terminating the collections, my part is fact finding, once again my appreciation to you!
    Thank you!

    Go to comment
    2022/10/04 at 2:23 am
    • From Dennis Legere on Collections

      Brenda,
      That is fine I do not need to see the files. The important thing to remember is that the reasonableness of any late fees or collection cost is at the discretion of the Board. The management cannot under Arizona assign fines for late assessments. You can apply a late fee of $15 or 10% of the delinquent assessment payment as a one-time fee. Collection cost is then based on reasonableness and actual expenses of the association or fees directly applied by the association if you do not use a collection agency. If the management company incurred cost you will have to pay for that cost and pass it on to the homeowner, however if the management company applied fees you can drop those fees at your discretion without paying the management company. Like i said earlier if the management company engaged a collection agency without board approval, then those cost are on them and not your association. But you would have to verify that to make sure that some board members did not give verbal approval without a formal action of the board. While no board member has this authority, it still happens often and may still result in the association being liable for the cost.
      Let me just say that I really like what you and your association are doing. It is a lot of work, but you are taking it on for the good of your community. I really wish more communities thought like this. I will gladly travel to your community and work directly with your board free of any charge, to help them in any way that I can.
      Dennis
      Dennis

      Go to comment
      2022/10/04 at 6:13 am
  • From Dennis Legere on AZ Statute or Law regarding breach of fiduciary duty for criminal act

    Aaron,
    While I mentioned that i will be introducing legislation to codify into Arizona statutes the real duties and standards for Association Boards , they are already part of Arizona case law from 2007 in Tierra Ranchos HOA v Kitchukov. That case invoked the standards defined in the Restatement of law third Property; Servitudes from the American Law institute in 2000. My proposed legislation will codify those same requirements into Arizona Statutory Law. While that standard does not extent that association boards have a fiduciary duty to the association homeowners, that standard would be too strict to apply to a voluntary board, it does apply the next step lower of a prudent person acting in a similar situation and similar conditions relative to their care for the common property and their use and protection of the financial assets of the community.
    Dennis

    Go to comment
    2022/10/03 at 12:25 pm
  • From Dennis Legere on Collections

    Brenda,
    The assessment lien belongs to the association. You are allowed to pass on all cost the association incurs to collect that assessment as part of the assessment lien due by the homeowner. This lien is statutory and does not need a court order or to be recorded against the property to be effective. You have the authority to foreclose for any amount greater than $1,200 or one year’s worth of assessments whichever is first. The thing is you decide what you want to do with this delinquency, not the management company. I suspect if you have not assigned this collection to an attorney that you have already paid the community manager for any service, they provided relative to collection and notice activity over the last three years. If the community manger assigned the lien to an attorney, they had no authority to do so without your approval and authorization, it was not their lien to assign to an attorney it was yours. Provide me anything you get from the management company, and I’ll look it over and give you, my recommendation. Send it to AZHOAtruth@gmail.com.

    You must act to claim the lien either by a monetary judgement or foreclosure action within 6 year of the initial assessment delinquency or you are barred from collecting on any amounts more than 6 years old.
    Dennis

    Go to comment
    2022/10/03 at 7:57 am
  • From Dennis Legere on Lawyer at HOA meeting

    Angela,
    Under Arizona law the association board can go into executive session to get legal advice from an attorney, there are only five reasons allowed for executive sessions and they must limit any discussion to those issues. They have the right to exclude all homeowners from those sessions. They must announce before going into executive session which of the five reasons they are discussing in that session. There is nothing in law that allows the board to take any action in these sessions and in fact because of this, they are prevented from taking any action without providing the homeowners an opportunity to speak before their vote on any matter.

    Dennis

    Go to comment
    2022/10/03 at 7:29 am
  • From Irene Smith on Homeowner's voting right at a special meeting of the Members in HOA

    Hi Dennis, we went through all the bumpy road, finally every have received a special member meeting notice, the meeting will be in Oct.6 5pm. However, I have 3 questions,
    1. On the meeting notice, the property manager purposely added a sentence: No vote of the membership shall take place at this special meeting. Can a member make a motion at the meeting: demanding the board to invalidate the illegal 15-month increase assessment. ? This is a special member meeting, not a board meeting. A member should have the right to do so. After the discussion, can we ask members to vote?
    2. We have one board member she opposes to the board decisions as to this assessment and roofing contractor. She and her husband are very supportive for what we are doing. Unfortunately, on Oct.6 5pm she will be on a long preplanned trip, on a airplane, unable to attend meeting. However, she would like to make a consent in writing and ask her husband to represent her as a board member for the meeting. Is this can be done?
    3. in our Bylaws, under the section Vacancies, it says: All vacancies on the Board of Directors shall be filled by a vote of a majority of remaining directors though less than a quorum or by a sole remaining directors.
    If we have 2 remaining directors, they can appoint the new directors without going through the election, is it right? We are preparing to recall 4 directors out of 6 total.

    By the way, I sent you an email last week, let me know if you have received it.

    Thanks.

    Irene

    Go to comment
    2022/10/02 at 7:15 pm
    • From Dennis Legere on Homeowner's voting right at a special meeting of the Members in HOA

      Irene,
      The community manager did this because they have nothing to vote on right now that they can put on any absentee ballot. If you have a quorum of the members present at the meeting, you can vote on anything the members want to vote on or say to the board. This is your meeting not the boards, do not let the board say what you can or cannot do. The board may not be bound by your actions, but at least you will be heard and be on record for opposing this illegal assessment. This is a special assessment and must be authorized as specified in the CC&R’s. Because they simply claim to call it not a special assessment has absolutely no relevance at all it expands beyond the fiscal year so it cannot be part of the annual or supplemental assessments.
      Voting by proxy is not allowed in Arizona for HOA’s under the law no matter what the CC&R’s say.
      The law for recalls specifically requires that if a majority of the board is removed by recall that a special election be held to fill the newly created vacancies. This supersedes any provision in the governing documents to the contrary.
      Dennis

      Go to comment
      2022/10/03 at 7:42 am
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