HOA's and those that control them (Boards, unlicensed HOA management companies and HOA attorneys) have too much power. Too many owners are subjected to bullying, threats and harassment. Too many communities are underfunded and are in poor condition, physically and financially. Please legislators, license and substantially regulate them thru the Dept of Real Estate and don't allow their lobby group to interfere with the creation of substantial regulations to protect the public. They've made you look like fools for too long, nationwide. This 'bad HOA industry' is from you only listening to one side, the side that profits off HOAs. Step up and make AZ the first state to create a pro-homeowner HOA industry (or possibly several states can be the first!).
Please watch this new video highlighting issues in the HOA industry:
HOA Legislative Changes/Suggestions...
1. LICENSE & REGULATE HOA MANAGEMENT COMPANIES THRU THE DEPT OF REAL ESTATE
A department that handles licensing and regulations, handles complaints regarding HOA management companies and Boards, audits HOAs and management companies.
A department that ensures every manager has a license, and a designated broker. Power to fine, suspend and revoke a manager's license. Public disclosure of complaints.
Regulations to ensure the manager must follow laws regardless of the HOA board's instructions. That will eliminate many issues such as breaking open meeting laws, refusal to show owners records...
Do not allow any 'per violation letter' charge to the management company! They should not profit for issuing violation letters. And the department should be able to audit for abuse of the violation letters.
The department should be able to remove Board members for failures to follow the law.
Multiple bids must be done on all repairs over $1000 (and copies kept on file). Boards must obtain at least one bid independent of the management company.
Should embezzlement occur, the department will investigate the management companies other HOA accounts to see if others were damaged.
The department needs to be able to make more regulations, holding the management companies accountable, that will protect owners in HOAs.
A resolution process needs formed to allow owners to resolve issues at no cost, when HOA/management company are not abiding by the law.
Complaints should also cover issues with HOA/management NOT maintaining the community, and also require a reserve study every 3 years (for condo/townhomes over 50 units). Copies of reserve studies and progress should be sent to owners yearly. They should all be required to do a reserve budget!
Resale fees should not exceed $100 (including but not limited to transfer and disclosure fees). Homewise docs charges a minimal fee to send copies to the buyers!
2. VIOLATIONS AND RULES
Write basic rules that apply to all HOAs - void current rules/CCRS in regards to violations and rules. There is too much power and abuse by the HOA/management company. Owners should not have to see a judge or jury to get the definition of 'reasonable'. A garbage can out 3 hours longer doesn't affect values...a few weeds is not affecting values...a slightly different sage green color is not affecting values...
3. EDUCATION/DISCLOSURES
A Buyer's Advisory for HOAs should be given disclosing what I covered in my HOA Report. In addition, I think a HOAS Property Disclosure Statement should be started (from this day forward, filled in as accurately as possible at inception of this new disclosure) and filled out by the Board, and filed publicly. This will assist buyers, owners, real estate agents, and new board members on the condition of the HOA and community. Reserve studies should be filed publicly as well.
4. CITIES SHOULD BE REQUIRED TO BUILD NON-HOA COMMUNITIES....possibly 50% of the new building permits should NOT be HOA. Some cities are over 90% HOAs - consumers should have a choice to not live in an HOA. The city can set up a PKID (Parkway improvement district) to tax the owners for common area drainage issues/see the PKID report on hoasavers.com.
5. HOA ATTORNEYS
Require HOA attorneys to not have any communication with the HOA management company, only the Board, and hold management companies accountable for past and present bad behavior. In the event the attorney and management company have a relationship outside the HOA, the HOA attorney must resign. (You wouldn't hire your wife's best friend to represent you in a divorce!). They should NO LONGER be allowed to lobby with the management companies!! They should immediately cease and desist lobbying together via all HOA lobby groups. HOA attorneys should also correct errors of the industry and immediately (at no charge to the HOAs), revise the management agreements to protect the HOA!! Remove the indemnification clauses etc. HOA attorneys need to start doing their job and truly represent the HOA. In addition, there should be a law that does NOT allow a board to use an attorney at the HOA's expense to handle recall and election issues!
The bad HOA industry was formed by the attorney/management company lobby groups...please do not allow them to just 'credential'...and please do not allow them to continue creating laws that only allow them to remain unaccountable and profit off HOAs. Owners need more rights and accountability from the HOA industry.
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