#SB1371 delinquent property taxes; common areas
The Arizona Homeowners Coalition supports this bill because it provides protection for the homeowners from deadbeat boards not paying the association’s taxes and a tax certificate holder foreclosing on the community common areas. This act would put all homes in jeopardy of being foreclosed on by the mortgage companies because the PUD rider to the mortgage requires the association to be solvent. It would also protect the homeowners from having to buy back from the lien holder the common areas at market or higher prices. While we hate to protect the association from foreclosure for not paying their taxes especially since these same boards will not hesitate to foreclose on home owners who miss a payment on their assessments, this ultimately is to protect the homeowner and in doing so we allow the association to escape responsibility to pay their taxes. We respectfully request that you support and pass this bill.

#HB2321 HOA cumulative voting prohibition
The Arizona Homeowners Coalition supports this legislation. While the concept of cumulative voting has been a long standing premise available to all non-profit corporations and common interest communities in community governing documents. The ability to apply this voting technique stems from non-profit corporation statutes that pre-date the Planned Community Act and the Condominium Act of 1994. With those acts these common interest communities were separated and distinguished from non-profit corporations and established more as pseudo governments. While this voting technique has been successfully applied to allow new blood to be voted onto the board to break up entrenched cliques from the board it has also been used to maintain those cliques and prevent new blood from being introduced onto the board. As such we believe that we would be better off to default to voting techniques more representative of every other form of government then that of non-profit corporations. It is our belief that the provisions and considerations of both the Planned Community act and the Condominium act of 1994, superseded the outdated provisions in governing documents that allowed this voting technique to continue beyond 1994. We respectfully request that you support this legislation.

(by: Dennis Legere of Arizona Homeowners Coalition)

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