Tuesday, September 10, 2013

Arizona Senate Bill 1454 "Making a Comeback in 2014?"

                    ARIZONA SENATE BILL 1454 MAKING A COMEBACK IN 2014?

The ink isn't even dry on the stipulation, thus voiding the HOA provisions in SB 1454 and there are already plans to bring back this legislation in 2014.

In an email obtained by ARIZONA HOA PRESS - From: Platinum Partner Law Firms

 Importance: High!

 "Platinum Partner Law Firms:  Just wanted you to have the information that we sent to our membership this morning.  This is expected to be finalized by late this afternoon or tomorrow.  We have already been in touch with Rep Ugenti and the Realtors to move forward with the same Bill during the 2014 Session."

SB 1454 was deemed as the most "controversial bill" in the 51st Legislative Session. Dave Russell, Community Manager, for Circle Tree Condominiums in Mesa, blew the lid off of SB 1454 in a KPHO news interview with Reporter Heather Moore. Russell stated, "SB 1454 allows sex offenders, convicted felons and drug-dealers into HOA rental units in crime free properties."  

When reporter Heather Moore interviewed Rep. Warren Petersen - R-Gilbert, Petersen seemed to be at a loss for words about the potential fallout of the legislation he authored.  

When asked if he knew those restrictions were keeping out a specific type of tenant, i.e. sex offenders, drug dealers and convicted felons, the freshman lawmaker struggled to answer. He said he was unaware convicted felons were the ones being turned away under the new law.

When confronted with that information, Petersen said, "I think you're using an extreme hypothetical here."

  "The legislation doesn't say anything about sex offenders," Petersen laughed.


 While Petersen called it hypothetical, CBS News found it is happening.The law doesn't take effect until September, but homeowners have already started breaking the crime-free agreements and renting to those previously not allowed, like Daniel Thresher, a registered sex offender who just moved into a designated crime-free HOA property in Mesa. Petersen was silent when it was pointed out the legislation opens up a whole new rental market for convicted felons, those previously shut out of certain communities.

George Staropoli, an HOA Homeowners Advocate, stated other issues with the new law;

"The motivation behind the acts to pass SB 1454 and the failure by the Legislature and Governor to reject the bill for the flagrant violation of the Arizona Constitution speaks for itself. And that can only be viewed as favoring HOAs and the HOA management firms.  SB 1454 raises other questions of constitutional violations not addressed in this complaint:  special laws for special groups, and a violation of the separation of powers doctrine as the supreme court has the authority to set rules and regulations affecting the judiciary, not the legislature."

George Staropoli also raised questions "Particularly disturbing was the amendments that granted special powers to HOA managers to represent HOAs in small claims court and in OAH hearings, powers that state Certified Legal Document Preparers do not possess. The litigation rights of homeowners were put at a disadvantage because they could not also have an untrained and unlicensed third-party represent them."
 
"Many may believe that SB 1454 had HOA amendments that would benefit homeowner rights and this lawsuit removed these benefits.  The loss of these perceived benefits lies not in this victory, but in the acts of Rep. Ugenti who is responsible for attaching, at the last legislative session, her defeated HB 2371 to SB 1454.  SB 1454 now became a bill with two subjects in violation of the constitution." Staropoli concluded.

HOA HOMEOWNER ADVOCATES SUE THE STATE OF ARIZONA (SB 1454)

All but one provision of SB 1454 that affect HOAs will be nullified under the settlement agreed to Friday by the Arizona Attorney General and plaintiff (Staropoli) who sued. Plaintiffs  Tim Hogan says the law violated a constitutional provision requiring bills to address only one subject. The surviving provision deals with elections signs.

Rep. Michelle Ugenti of Scottsdale added provisions to an unrelated election law that included forbidding local governments from requiring developers to establish a homeowner association and banning associations from performing background checks on tenants.

Homeowner Associations claim SB 1454 would have jeopardized the safety and security of many HOA's in Arizona. "It would appear that our Realtor Lawmakers, are changing the laws to accommodate their clients/investors, who purchased thousands of homes during the housing market crash, and now could care less about the impact to our communities, by allowing felons, sex offenders and drug  into rental units." stated an HOA (Gilbert) board president

Rep. Michelle Ugenti's integrity is now being called into question again. "She sponsored a bill that would have made it a felony if you failed to report your child missing. She wants to secure the boarder and now, she seems to care less, if the sex-offender moves in next door to our children," stated an angry Dave Russell.    

After a brief victory yesterday homeowners, associations, HOA members and HOA activists were geared up when they learned that this proposed legislation is coming back in 2014. These groups are already rallying supporters, lawmakers and hiring attorneys to defeat the proposed legislation next year.   

Last year, House Bill 2513 contained similar HOA restrictions and was authored by then-Rep. Steve Urie, a real-estate agent.It was vetoed by Gov. Jan Brewer. However, the language in that bill kept popping up. The Arizona Association of Realtors asked Petersen to revive the legislation this year in HB 2337. When that didn't work, they tried again with HB 2371, and when that didn't pass, it showed up in HB 2518, where it also failed. The HOA language ultimately slipped through on the last day of session in a hodgepodge of amendments to SB 1454 which sparked the lawsuit. Every one of the sponsoring lawmakers just happens to be a real-estate agent.

-Sue Jones
AZHOAPRESS
 

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