Numerous books and lectures have covered the topic of how to successfully negotiate. In a community association setting, the process of negotiating can take several forms –negotiating the terms of a contract with a vendor, negotiating a settlement with a homeowner, negotiating community strategy amongst the board, etc. If you listen to the experts, you’ll notice several common themes, which [...]
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Unfortunately, the majority of media coverage involving community associations is negative. With that in mind, it is important for your community to be prepared in the event that the media contacts the board and/or is covering a story involving the community. The two most common scenarios where a community association will receive media coverage are (1) a conflict with a [...]
The Arizona Legislature opened the Fifty-fourth Second Regular Session on Monday, January 13, 2020. Our firm anticipates that there will be numerous community association bills introduced this legislative session. Every week during the legislative session, Mulcahy Law Firm P.C., will provide this summary of proposed bills impacting community associations. If you would like to be involved in the legislative process, [...]
2019 Arizona Legislative Update Regarding Community Associations The Arizona Legislature adjourned on May 28, 2019. The effective (or start) date for all bills signed by Governor Ducey is August 27, 2019, unless otherwise specified. SUMMARY OF SENATE BILL 1531 - HOAs; Assessments; Costs The law amends ARS 33-1256 an ARS 33-1807 and therefore applies to both condominiums and planned communities. It [...]
There are thousands of community associations in Arizona today. Characteristics of a Community Association All owners become members of a community association when they accept a deed to a lot/unit located in a community association. The governing documents (i.e. CC&Rs, articles of incorporation, bylaws and rules and regulations) create obligations on the part of the homeowners and the community association. [...]
Trustee’s Sale If an owner becomes delinquent on his/her mortgage or deed of trust, the deed of trust company may initiate foreclosure proceedings on the owner’s property by noticing a Trustee’s Sale. Secure the association’s interests: A lien places the Trustee on notice of the association’s interests, so the association will receive notice of the Trustee’s Sale and notice of [...]
Transition From Developer Control Transition from developer control occurs when control of the association shifts from the developer to the owners. The transfer of control can occur in several ways. However, the most common method is a weighted voting approach whereby the membership voting ratio is arranged so that the developer will transfer control to the association after a specific [...]
1. The Arizona Open Meeting Law A.R.S. 33-1804 / Condo A.R.S. 33-1248 Pursuant to Arizona law, all meetings of an association, board of directors and regularly scheduled committee meetings are required to be open to all association members or their representatives (who have been designated as such in writing) and held in the State of Arizona. Members or their designated representatives are [...]
Theft of Association Funds Theft of association funds is unfortunately becoming common in community associations. Arizona newspapers have reported in the past few years misappropriation of funds by a management company, the unexpected closure of a small management company after individuals absconded with funds from several associations and a manager taking a million dollars from an association. If you have [...]
Code of Conduct Overview An association board of director’s code of conduct explains the expectations of board members with regard to ethical rules and procedures, standards of behavior and professional conduct while they serve as a director for their association. The code may be necessary because of director’s diverse work experiences, personalities and reasons for serving. A code of conduct [...]