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JoanneD1 (Arizona)
Posts: 447
Posted:
Does the President of an HOA have the power to overturn an existing HOA policy for only ONE owner?

Does this not create a special class of ownership? Is anyone familiar with any AZ State Statute that speaks to this?

Thanks again! I also am attaching something that I found on the internet that deals with Board Code of Conduct that might really prove beneficial to those serving on boards. Seems boards think the "gadflys" are just the folks on the other side of the table.HOMEOWNERS ASSOCIATION CODE OF CONDUCT FOR DIRECTORS

The Homeowner Association Board of Directors has approved the following code of conduct for its members in order to ensure that they maintain a high standard of ethical conduct in the performance of the Association business, and to ensure that the residents maintain confidence in and respect for the entire Board.

The following principles and guidelines constitute the code of conduct:

No individual shall use his/her position as a Board member for private gain, for example:

No Board member shall solicit or accept, directly or indirectly, any gifts, gratuity, favor, entertainment, loan, or any other thing of monetary value from a person who is seeking to obtain contractual or other business or financial relations with Association.

No Board member shall accept a gift or favor made with intent of influencing decision or action on any official matter.

No Board member shall receive any compensation from the association for acting as such.

No Board member shall engage in any writing, publishing, or speech making that defames any other member of the Association Board or resident of the Association community.

No Board member will willingly misrepresent facts to the residents of the community for the sole purpose of advancing a personal cause or influencing the community to place pressure on the Board to advance a Board member's personal cause.

No Board member nor his/her agent or employee or family member shall enter into a personal service contract with the Association without previous disclosure of such interest to the Board.

No Board member will seek to have a contract implemented that has not been duly approved by the Board.

No Board member will interfere with a contractor implementing a contract in progress. All communications with contractors will go through management or be in accordance with policy.

No Board member will interfere with the system of management established by the Board and the management company.

No Board member will harass, threaten, or attempt through any means to control or install fear in an Association contractor.

Any Board member who violates this code of conduct agrees that the Board of Directors may seek injunctive relief against him/her and agrees to pay the attorney's fees incurred by the Board in that enforcement effort.

President Date

Vice President Date

Secretary/Treasurer

Date
MelissaP1 (Alabama)
Posts: 13,836
Posted:
What did this person do? I know you think it's against the rules and all...but kind of need information of what exactly this special privilege was that was given. There are always exceptions to the rules for special circumstances. Being that the rules of a HOA are created by the members for the members, they can be changed to adapt to new situations.

A good example of this is the satellite rules of past. Satellites used to be HUGE round discs that took up ALOT of space and were eye sores. Us from the 80's remember these very much...However, satellite technology and government regulations have changed satellite conditions. The original drafted rules of the HOA were written probably in the early 80's or when sattlite TV attenna's were still in the development stage where they indeed were troublesome eyesores. However, now a days there are regulations in many states where Satellite dishes can no longer be banned by a HOA. The issue is that the HOA's documents have never been updated to reflect this change. So a HOA often quotes these rules against a violator even though the rule could very well be invalid. (This is just a rough example as this is a HUGE topic with many variables.)

I am pointing this siituation out as I am sure it doesn't apply to your situation, as a way to express how a HOA can't always apply their rules. You may say this person is getting special privilege but if that privelege doesn't make sense or can no longer apply in the real world circumstance, then it just may be "special until the rules change".

So knowing the special privelege this person got can help in determining if this was special or special circumstances...

Former HOA President
JoanneD1 (Arizona)
Posts: 447
Posted:
Hi Melissa.....this is about a process server trying to serve a board member who wrote his own rule about being notified by the gate when in fact there is a standing policy that owners are NOT TO be notified (according to a legal opinion obtained). The president of the board allowed this and when I asked the gate if I were going to be notified should some attempt service to me I was told NO. Therefore, regardless of the circumstances, it seems to me that someone has knowingly created two classes of ownership and I would think that illegal. What do you think?
JanetB2 (Colorado)
Posts: 4,219
Posted:
Hi Joanne:

Sometimes there might be a potential upcoming legal situation which is currently confidential (which is why the Board can also have executive sessions during meetings for legal items, if needed) to protect confidential info according to other Laws outside of HOA statutes.

The point is there are sometimes situations when the board has certain obligations which you may not be aware of at this time. As an example maybe this board member wants to make sure there is another board member present as β€œwitness” to him being served and which maybe was suggested by the HOA attorney.

The issue is you do not know the circumstances; therefore, before possibly having a mountain out of a mole hill you need to ask your board about the situation or the supposed rule. At this time you potentially are making assumptions.
CarolR11 (Colorado)
Posts: 2,563
Posted:
I seem to recall, Joanne, your lengthy email on this topic. I can't remember: are you on the board or not?
JoanneD1 (Arizona)
Posts: 447
Posted:
Yes Carol, you are correct in your recall. I have a dear friend that is serving on the board and is totally outnumbered on this issue and I am trying to offer her support. I was on the prior board that obtained the legal opinion that an HOA could be obstructing an order of the court if it alerts an owner. It is HIGHLY likely that a bill will be passing(HB2341) that will NOT permit gate staff to alert owners of an approaching process server which by AZ law is an "officer of the court". To quickly recap, the pres has changed the policy for only this homeowner and not all.The extenuating circumstances surrounding this owner is that, by his own public admission, he has had death threats and has armed himself. Is it the responsibility of an HOA to give this owner "special protection" in any way, shape or form when that is not being offered to all other owners. I verified this to be true. Thanks for your interest.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
This is one of those areas that crosses HOA and the law lines. The HOA can NOT interfere in the operations of the court system. Which means they are limited in making such a rule NOT to allow court servers into the HOA area. That is the HOA's LIMITATION and LINE.

It is NOW a PERSONAL level when somwone allows interference with the law. It is no longer a HOA matter or policy. It is THAT person violating the law and encouraging others. They are hiding behind the HOA facade.

I would report this to the authorities to investigate. I would also talk to the guards at the gate and advise them to call the police whenever the server shows up. This way they can have the legal police support they need to by'pass this member interfering. This should protect them from liability and record the activity that could very well be illegal. Let the police sort this out and NOT the HOA. The board member is crossing this legal line and does NOT need to bring the rest of you down with it. A board member represents the WHOLE HOA membership..Does this reflect what the owners want? I think not...It may be time to recall this member or give him a jolt of the real world by letting the law know...

Former HOA President
JoanneD1 (Arizona)
Posts: 447
Posted:
Thanks Melissa.....now you have got the full picture. The BOD that is getting the special treatment is claiming that a manned gated community has an obligation to keep out ANYONE that an owner does not want to enter and the president of the HOA has bought into it. I was told that the BOD threatened to sue the HOA and that is another reason the president gave in. There is actually a list of rules posted in the gatehouse that were written by this director and the staff has been instructed to follow just for this ONE owner. This community is very badly fractured and has been for some years and unfortunately that filters down to many of their decisions and actions. They recently took a vote on an assessment without verifying that there was a quorum at the meeting and there wan't so now they are having to redo all of that and it will be a very close vote. The board constantly shoots themselves in the foot because they don't know the documents, the statutes or they think they can just wildly throw their weight around. An attempt at removal would being such additional chaos that it might get into the newspaper and depreciate the values even more. Thanks...have a board meeting today and the president has taken this item off the agenda because of the mess it is creating. They just keep going into executive sessions. Will update later.
CarolR11 (Colorado)
Posts: 2,563
Posted:
Our Board prez has no authority whatsoever to overturn (or make) policy; only a quorum of the board acting at a meeting may make or overturn policy. But maybe there are HOA's where the presidents or other individual directors have that power. If so, I'm very glad that I don't live in that type of HOA.

That the person has had threats against his life has nothing to do with process servers' entry. Presumably your gate guard can prohibit access to your community to any person a resident does not want to enter. But it sounds as though this doesn't apply to officers of the court.
JoanneD1 (Arizona)
Posts: 447
Posted:
Thanks Carol. The meeting is in an hour and I will have the full picture after that. What a mess this BOD has created not to mention the legal expense and they allowed him to send the attorney a position paper!!! A true farce!
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Joanne

I could be wrong, but I thought you had beat this subject to death in another post.
I
JoanneD1 (Arizona)
Posts: 447
Posted:
John, this is a related subject and please feel free to not read further or offer something constructive since this is an on going issue that involves ALL owner's rights and there has been no resolution. John...Can a board president unilaterally change a policy? Yes or no reply would be most welcome. Thanks.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Joanne,

As for the authority of the President to change or modify a policy, the answer would be it depends on what authority is given to the President by the Board and/or through the governing documents. Therefore, what do your governing documents identify as the duties of the President?

I'm not clear on this one - There is or isn't written policy specifically about process servers?

As you know, the President is considered the face and voice of the Association. Therefore, if a President does something independent of what the Board desires, the people acting on that word would have been acting in good faith that the instructions came from the Board. Although you are properly holding the President responsible, I mention that point for others who might read this thread and think that the issue should be against those who implemented the instructions vs the one who gave the instructions.

I know that you asked John to ignore the underlying issue but the underlying issue, I believe, is probably behind why the President did what he did.

Per that background, the member who wants to be informed threatened to shoot unannounced visitors. Perhaps, the President was trying to defuse a situation before it escalated into violence. Have you asked the President why they did what they did or are you just forming an opinion based on hearsay?

As I posted, the authority will depend on what your Association allows. Typically the President may not override a board decision or a written policy without prior authorization from the rest of the board. However, as others have posted (and I agree with), there are sometimes extraordinary circumstances that requires modifying a decision or granting a waiver. If the board isn't happy with the Presidents action, they have the authority to reverse it and/or remove the President from office.

Tim

Tim
JoanneD1 (Arizona)
Posts: 447
Posted:
Hi Tim! Always appreciate a thoughtful answer. I don't believe our docs permit a unilateral decision and many were in attendance when the BOD made his statement about having a right to bear arms. The topic was not not discussed at the regular board meeting today because the president removed it from the agenda. The BOD that is creating the difficulties brought a tripod with a video camera and taped those of us in attendance as he is attempting to get some kind of harassment claim . No one said anything so that was rather comical. Thanks again for tolerating this discussion. Boards have great power and the opportunity to abuse which in my meager opinion is exactly what has been done here. Happy Valentine's to all!!!
LarryB13 (Arizona)
Posts: 4,099
Posted:
In Arizona, it is legal for any member to film or tape a meeting of the Board.

Yes, he can show his tape to a judge and claim harassment. Once the judge learns that the "harassment" is that the HOA is not going to violate public policy by warning him of the approach of process servers, the case will be dismissed. Ironically, your board member will have to hire a process server to serve each of the defendants.
JoanneD1 (Arizona)
Posts: 447
Posted:
Hi Larry from Arizona! Isn't this just about as comical as it gets. Apparently there was some decision reached at the executive session about the process server policy and they are going to let the owners know in writing. We are waiting with baited breath!
PaulM17 (Florida)
Posts: 11
Posted:
Are you really prepared to hire a lawyer and file lawsuit? Because you might lose. So what is the big deal. Why aren't you just happy that the president is willing to do the payless job? So you don't get everything perfectly the way you want it. So what. And if you still don't see my point then why not just become the president yourself and then see what a monster headache you have.
JoanneD1 (Arizona)
Posts: 447
Posted:
Paula, Excuse me but you know that HOA boards have to comply with state laws and governing documents? I was recently a sec/treas and served on a board that was compliant with all of the above and also heeded the advice of legal counsel....which is MUCH to the contrary of the current BOD. Boards have a fiduciary to the members of the corporation not the personal agendas of those serving on the board. A board that is responsive to another BOD or stakeholder because of intimidation and belittling is doing no service at all. Thank you for the comment.
CarolR11 (Colorado)
Posts: 2,563
Posted:
Hi Joanne, a minor point: It's can be difficult following your posts when you refer to an individual director as a "BOD." Many HOA's routinely use BOD to refer to the Board of Directors as a whole. So it might help us, or at least me, if you'll refer to the director with the process serve issue as "the director," or even by a fictitious name. Thanks.
JoanneD1 (Arizona)
Posts: 447
Posted:
Carol....thanks for the tip and have a fun Valentine's Day.
KellyM3 (North Carolina)
Posts: 2,239
Posted:
I understand the "that's not fair" nature of this but there's no need for directors to get between another board member being "served" by a court. They'll get this person and the summons will be presented.

Of all rules to go bananas over, a rule actually exists governing how and how not residents can be issued summons. Ugh.

Worry about the flowers.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I do believe in another post she was told by several people in AZ (and the law lnked to) that a summons server was an Officer of the Court and could not be stopped/denied entry at a gated community but she seems to keep at the subject.

Of course, I could be wrong.

JoanneD1 (Arizona)
Posts: 447
Posted:
Thanks for the responses and I do like flowers much more than this kind of stuff. The owner demanded to be alerted when the gate permitted the process server in and that will be addressed in the revised statute. I was not coming from the position of "no one wants a summons" but a position of it is an order of the court. Thanks again and I am certain that he will get served at some point because there is way too much money involved. This site is always helpful as most people cannot afford nor do they want to contact lawyers every time there is a question or dispute. Thanks again.

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