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IslamM (Florida)
Posts: 67
Posted:

Wondering if any of you knowledgeable members is familiar with it? I will paste what I found very interesting and was wondering if Florida has anything similar?

Also in the legislative hopper, having passed the House, the Arizona Senate is ready to vote on another ex post facto restoration bill, HB 2382[3], that would prevent CC&Rs amendments from being enforceable if the affected homeowner does not consent to the amendment. This bill is a much broader bill pertaining to any amendment that affects less than all members. The effect of an HOA ex post facto amendment could be an eminent domain “taking” violation as the owner is not compensated by the “takings” amendment, which would bring the HOA in line with constitutional government.

Your response will be appreciated for research.
Thank you!
LarryB13 (Arizona)
Posts: 4,099
Posted:
I was not personally familiar with this legislation. It appears that the intent is to make amendments to the CC&R's binding only on those property owners who specifically approve the amendment. All owners would be required to approve any amendment as they do now and then only those who agree to the amendment would be effected by it.

Among my reservations about this bill:
1. There is no uniform method of amending CC&R's. If your CC&R's now require the approval of your second grade teacher they will require that approval in the future; and
2. It will create developments with patchworks of CC&R's that could eventually leave each property with its own unique set of covenants.

TimB4 (Tennessee)
Posts: 21,059
Posted:
I agree with Larry that this could be an issue of, to use his term, patchwork CC&Rs.

the bill (select show versions in the link) can have an amendment, say on rentals, apply to your neighbor but not to you simply because you chose to vote against it.

I think it would be better to specify that any amendments require 100% agreement. Unfortunately, the house version appears to allow the Board to amend the covenants on their own and then solicit membership affirmation to agree to be bound by said amendment (which sort of amplifies the patchwork issue).

It also draws into question all previous amendments and which lots those amendments may be applicable or not applicable to. If made into law, recent purchases would be bound by all prior amendments (as they agreed to them when purchasing). Previous purchases would be hit and miss based on the date of sale and the date of amendment.

I have not read the senate version.

I certainly hope it doesn't become law based on this current writing (as it may work it's way into other States).
LarryB13 (Arizona)
Posts: 4,099
Posted:
Tim,

I think this was an attempt to overcome an Arizona appellate court decision a few years ago. The court held that CC&R's could not be amended to create new or greater burdens on property owners.

The sponsor of this bill is a member of a family of well-known real estate sellers and the association involved in the court decision is located in his general area. I do not know if he has any personal connections to that development but my first guess would be, "Yes" and he is guilty until proven innocent.

BTW, I read nothing in that bill (the versions that I read) that would lead me to conclude that the sale of a home would automatically trigger consent to an amendment.

TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By LarryB13 on 03/25/2016 1:16 PM

BTW, I read nothing in that bill (the versions that I read) that would lead me to conclude that the sale of a home would automatically trigger consent to an amendment.


I agree, nothing in the bill.

Just normal protocol.

You agree to the contract upon purchase. One could argue that since the amendment was in the governing documents you agreed to them when you purchased (even if they didn't apply to the previous owner, simply because he voted against it).
LarryB13 (Arizona)
Posts: 4,099
Posted:
Tim,

I know of nothing that would cause that to happen. When you purchase the property you would be bound by what the seller had agreed to. If the seller had decided not to be subject to the amendment then that is the way the property would transfer. I see nothing that would prohibit the buyer from agreeing to accept the amendment nor do I see anything that would compel him to do so. I think you are reading in language that is not there.

You say just normal protocol but I know of no basis for it. The bill does not give the association any authority to impose the amendments on unwilling owners and makes no mentions of transfers at all, if I remember correctly.

GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By IslamM on 03/24/2016 7:06 PM

Wondering if any of you knowledgeable members is familiar with it? I will paste what I found very interesting and was wondering if Florida has anything similar?

There is nothing similar in Florida. The recently concluded legislative session had about 6 HOA "reform" bills that were proposed. None passed. They can't even get longstanding problems addressed here, I doubt anything like HB 2382 (AZ?) will ever be considered here; no law in FL can retroactively alter anyone's rights under an existing contract.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By GenoS on 03/26/2016 2:59 PM
Posted By IslamM on 03/24/2016 7:06 PM
Wondering if any of you knowledgeable members is familiar with it? I will paste what I found very interesting and was wondering if Florida has anything similar?

There is nothing similar in Florida. The recently concluded legislative session had about 6 HOA "reform" bills that were proposed. None passed. They can't even get longstanding problems addressed here, I doubt anything like HB 2382 (AZ?) will ever be considered here; no law in FL can retroactively alter anyone's rights under an existing contract.


I am not sure where the terms "ex post facto," "restoration," and "eminent domain" came from. Those words and phrases are not found in the versions of the bill I found online and had I not read them here in the OP I do not think those concepts would be up for discussion.

TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By LarryB13 on 03/25/2016 6:48 PM
Tim,

I think you are reading in language that is not there.


Granted, that language isn't there.
Unfortunately, it's also not addressed that the refusal would be binding on future owners.

Therefore, thinking outside the box, I could see an argument being made that all amendments now apply because they were in the governing documents when the person purchased. Hence an argument that they agreed with the documents as written (vs. what was previously applicable).

It would be an interesting case.

Personally, I would hope that such legislation would fail, but I'm surprised it has gone as far as it has.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By TimB4 on 03/27/2016 7:24 AM
Personally, I would hope that such legislation would fail, but I'm surprised it has gone as far as it has.


Me too. This is an incredibly bad idea.
BobD4 (up north)
Posts: 1,002
Posted:
A part of the backstory might be seen at a website licensed to George K Staropoli “HOA Constitutional Government” https://pvtgov.wordpress.com/ )

“Democracy in action : how your legislature functions” described further as “Published in ‘uncategorized’ on March 17 2016” with links to several related articles and comments.

https://pvtgov.wordpress.com/2016/03/17/democracy-in-action-how-your-legislature-functions/#comments

Whatever the various iterations of the Arizona bills eventually provide, I presume the Bills may recognize :

1- how shaky in Arizona might be affirmative obligations/"positive covenants" where claimed to be running bindingly on property titles merely by implication ( instead of express transfer of rights & obligations between grantor & grantee ).

Larry B13 has noted previously his state's Dreamland v Raimey http://www.azcourts.gov/Portals/89/opinionfiles/CV/CV080388.pdf

2 - owner apathy - or very valid concerns about common element/common services concerns - will skate things onside enough that slam-dunking will be unnecessary or its victims won't get politically heard.

LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By BobD4 on 03/28/2016 8:32 AM
A part of the backstory might be seen at a website licensed to George K Staropoli “HOA Constitutional Government” https://pvtgov.wordpress.com/ )


I took a quick look at this site. Looks whacko to me. Mr. Starpoli appears to fit the mold of the "Constitutional Scholar," which is someone lacking any significant educational or legal credentials seeking to justify some anti-social agenda through a convoluted misinterpretation of various words and clauses found in the constitution.

Thirty years ago Arizona elected a governor who considered himself to be a "Constitutional Scholar." He surrounded himself with others making he same claim. At his impeachment trial he justified loaning his car dealership nearly $100,000 in state funds by stating that he paid more interest than the state usually earns on its money. He saw nothing wrong with his actions.

Quote:

1- how shaky in Arizona might be affirmative obligations/"positive covenants" where claimed to be running bindingly on property titles merely by implication ( instead of express transfer of rights & obligations between grantor & grantee ).


I know of nothing unique to Arizona about covenants and I have never heard of them being applied to a deed by implication.

BobD4 (up north)
Posts: 1,002
Posted:
- Mr Staropoli's site's article may express some degree of satisfaction with the proposals so far. Think it discloses he is neither lawyer nor paralegal.

- LarryB13's interesting Dreamland v Raimey 2010 is an appeal decision striking down a retroactive attempt to convert what was held to have been ( for development phases 1-17 ) a purely 'social club'- "join or ignore" - situation.

Several phases purported to infer jurisdiction to be able to vote bindingly to convert to 'pay/comply/pass along'. Some sections held (partial membership) votes to become mandatory. Then the demands started. Refusers lost in lower court.

The text shows the appeal court in 2010 was faced not only with these votes but an Arizona appellate decision noting SHAMROCK :

quote "Membership in a nonprofit corporation requires a person's express or implied consent. [Arizona Revised Statutes (A.R.S.) ] § 10-3601(B) [2004]. Our appellate courts have held that when a homeowner takes a deed containing [a] deed restriction that allows for amendment by the vote of a majority of homeowners, that homeowner implicitly consents to the subsequent majority vote to make membership in a homeowner association mandatory" unquote

But the appeal court looks at the Lakeland line of cases & at the site specifics/document contents at Dreamland to find that neither apply to the voodoo conversion votes nor thus to the compulsions claimed afterwards( para 30 ).

At least that is what it looks like to me. Perhaps with different wording in the root deeds & original CCRS etc ? ?

- My own jurisdiction is seeing a challenge to a 130 year long line of judgments that strike down affirmative obligations/'positive covenants ( such as 'pay /comply/pass along') unless those are expressly passed along between grantor and grantee. An outcome could be getting bound by "implication"

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