Wednesday, August 07, 2013

Homeowner Legal Options Against HOA | The Bainbridge Law Firm, L.L.C. | Scottsdale Arizona


Arizona law places certain restrictions on HOAs, regardless of the powers given to the HOA in the community documents. Below is a list of some common restrictions on HOA power. If the following principles are not followed, an HOA decision could be invalidated.

  • Board members must act as fiduciaries to the association, meaning all board members must put the interests of the community ahead of their own personal interests when acting on behalf of the HOA.
  • If any HOA action could financially benefit a board member or that board member's immediate family, the board member must state this conflict at an open meeting before voting on the issue.
  • HOAs must act reasonably and treat members fairly. An HOA may not carry out its duties in a manner that is arbitrary, capricious, or unreasonable. In other words, community rules must be reasonably enforced.
  • HOAs may not selectively enforce community rules against particular homeowners. HOA rules must be enforced as equally as possible.

---SPSmith

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