Saturday, December 18, 2010

Arizona lawmaker proposes barring HOA "auto liens," foreclosures to secure fines

A local homeowners association’s management company is pushing state lawmakers to defeat a legislative bill that would make it impossible to foreclose on a home for non-payment of assessment fines.

The Arizona Association of Community Management (AACM), the HOA political arm of Associated Asset Management (AAM), is lobbying the state Legislature to defeat House Bill 2307, sponsored by Rep. Eddie Farnsworth, R-Gilbert, which is designed to restrict HOAs from foreclosing on a property owner’s home for non-payment of assessment fines using a legal tool called an “auto-lien.”

The auto-lien is a provision in the Covenants, Conditions and Restrictions (CC&Rs under Arizona real estate law. The CC&R is a document that is signed during the closing of sale of a home and states that a homeowner who buys a home in a deed-restricted property must join an HOA. AAM and AACM are also dues-paying members of the Community Association Institute, a national HOA membership organization that oversees the operations of HOAs.
This is an ongoing battle in the Grand Canyon State dating back to at least the mid 1990s involving a familiar legislator (Eddie Farnsworth, who argues the bar on HOAs placing automatic liens for fines protects property rights) longtime HOA member rights advocate Pat Haruff and of course the usual wall of opposition from the private local government lobby. Read the story here.


Anonymous said...

OLD NEWS from 2003 ........

Mika Brainy said...

The date of the post and the article is Dec 12, 2010. I didn't know that Janet Napolitano is still the governor of AZ., as well as some other facts that are history. What's going on? Somebody from another planet and another time dimension apparently just arrived in AZ.

Anonymous said...

Many retirees now living in HOAs find themselves nearly broke due to how our financial market has turned. They no longer hold financial income permitting their payment of required HOA dues let alone fines. With the kind of power some HOAs unleash they are now in the position to lose their greatest investment, thier home.