Homeowner Association Study Committee
Statutory Structure Subcommittee Draft Recommendations
Tom Smith, Chair

The Legislature of the State of Arizona had created a Subcommittee for Statutory Structure for Homeowners Associations. 
Sen. Tom Freestone,       Sen.  Richardson,     Sen.  Smith 
Rep. Jarrett,    Rep. Marsh,    Rep. Foster 
and President of the Senate Brenda Burns 

As an explanation: Arizona has a similar problem with HOAs as Florida.
This Committee, after several Public Hearings and lots of input from Homeowners Rights Groups came up with the below  printed recommendations. Hopefully our Legislators here in Florida will see that there is a big problem with the Florida Statutes regarding Homeowners associations and will use these recommendations as an example in order to amend our Statutes here in Florida.
Arizona has set a great example for the fact that Homeowners Rights must be protected in our Country.

  • Apply statutory requirements to HOA's that are under declarant (developer) control.
  • Remove ability of HOA bylaws to provide other meeting notice requirements than those in statute.
  • Mandate that all members of an HOA can speak at a HOA meeting. Allows restrictions during meetings of the HOA Board. Allows time limits on speaking to be instituted.
  • Require notification of association members of their right to seek election to the HOA board.
  • Require each ballot or proxy for HOA board elections to be signed and that the votes be counted in public.
  • Stipulate that presence at a meeting supercedes written ballots or proxies.
  • Require public meetings and a public vote to remove HQA board members. Require 2/3rd vote of at least a quorum of 25% of the HOA membership or 100 members whichever is less. Allow amendment to CCR's at any time with 2/3 majority without having to seek permission of the declarant or any financial institution. Allow amendment vote to occur with mail in ballot or proxy-both must be signed
  • Require election results and ballots to be held for a minimum of 30 days following the election~
  • Grant attorney and court fees to the winner in any HOA dispute that is resolved by a court.
  • Prohibit an HOA from placing a lien on property without a judicial determination that the lien and fine are valid     and proper.
  • Allow treble damages when an HOA does not remove a lien that has been resolved within a reasonable time.
  • Require due process for fines including a hearing by an independent beard (not HOA Board) to provide an unbiased appeal process. Exempt independent hearing board from open meeting laws.
  • Require HOA board members and members to follow internal appeals process prior to going to court on any issue.
  • Allow owners to receive a HOA annual budget statement monthly financial reports, meeting minutes or related      materials for no fee.
  • Require prospective purchasers to be provided with an HOA's current financial statement, operating budget and CCR's prior to purchase of property within all HOA for a fee based on the cost of reproducing the documents. Allows prospective purchaser to request minutes or to attend future HOA board meetings. Require prospective purchaser to be notified that they are entering a HOA.
  • Apply financial disclosure requirements to new home sales.
  • Require amendments to bylaws and CCR's in declarant (developer) controlled HOA's to follow an amendment process and to notify all HOA members.
  • Require developers to relinquish control of a HOA either five years after sale of the first unit or when 75% of the development has been sold.
  • Require developers to convey common areas upon relinquishing control.
  • Require developers to fully fund HOA reserves upon relinquishing control.
  • Require a 20% cap on increases of assessments in planned community statutes Apply cap to condominium statutes.
  • Prohibit an HOA from stopping services such as water and utilities.

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