PRESS RELEASE *** PRESS RELEASE

For immediate release

January 25, 2004

CONTACT:
George K. Staropoli,
Citizens Against Private Government HOAs, Inc
Scottsdale, AZ
602-228-2891
info@pvtgov.org

The unconstitutional mandates of HOAs must stop!

The Town of Gilbert, AZ is seeking comments on its planning board policy as setforth in its Public Review Draft of Article 3.1 of its Unified Land Development Code. The issue of mandating HOA governance for all new subdivisions must be addressed. Several Arizona bills -- HB2453, HB2368, HB2380, HB2402, HB248 -- as well as important court decisions affect this issue.


The question of towns/cities mandating the use of HOAs to govern planned communities is a gross unconstitutional delegation of governmental authority. These planning boards give away the state's homestead protection just because they want to be free of governing the community, thereby removing homeowners living in these HOAs from the equal protection of the laws: the homestead laws of the state (1) and other laws.

These planning boards are taking away a citizens rights in violation of state laws without the requisite supervision and oversight required by law (2). To argue that by signing a purchase contract the buyer has knowingly agreed to surrender these rights, without reading, signing or initialing the CC&Rs or bylaws, is disgraceful (3). A used car firm would be held accountable for making such an argument and hiding material facts from the home buyer.

These planning boards do not make any specification for the equal protection of the laws and due process to unsuspecting home buyers. These acts are a definitive instance of state actions and violate the constitution (4).

Homeowners living in planned communities subject to HOAs must have their rights restored. The passage of the current bills mentioned above an are important step in restoring these rights taken away in favor of private organizations.


References:
1. ARS 33-1101 to 1105
2. Mcloughin v Pima County 2 CA-CV 2001-0198, Arizona Appeals Court
"It is a well established theory that a legislature may not delegate its authority to private persons over whom the legislature has no supervision or control"

"The legislature cannot abdicate its functions or subject citizens and their interests to any but lawful public agencies, and a delegation of any sovereign power of the government to private citizens cannot be sustained nor their assumption of it justified".

3. ARS 33-1807, 33-1256; Pardee Construction v Rodriquez California Superior Ct GIC769966, D039273

From Pardee:
"And the agreements in their entirety [relating to compelled construction defect arbitration] were contrary to the public policy ... Subsequent cases have referred to both the 'reasonable expectations' and the 'oppressive' limitations as being aspects of unconscionability".

4. Brentwood Academy v Tennessee School Athletic District, 99-901 USSC; Lugar v Edmundson Oil Co, 457 US 922 (1982)

From Brentwood:
"We have, for example, held that a challenged activity may be state action when it results from the State's exercise of 'coercive power', when the State provides 'significant encouragement, either overt or covert', or when a private sector operates as a willful participant in joint activity with the State or its agents".

"We have treated a nominally private entity as a state actor when ... the organization performed a public function; was created, coerced or encouraged by the government".


Additional information:

The Case Against State Protection of Homeowner Associations, George K. Staropoli, Infinity Press, ISBN# 0-7414-1620-4, 2003

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The HOA Citizen
The Case Against State Protection of Homeowner Associations

Citizens Against Private Government HOAs

George K. Staropoli
PvtGov.Org