Wednesday, July 10, 2013

Arizona Association of REALTORS® In Hot Water With Homeowners (AZ Senate Bill 1454)


Homeowners who live in HOA’S across Arizona are fit-to-be-tied over a new Arizona HOA Law that will eliminate crime prevention programs. The Arizona Association of Realtors and the National Association of Residential Property Managers are applauding the passing of SB 1454 and were the key stakeholders of the bill.

Sponsored by Arizona State Rep. Michelle Ugenti, Authored by Rep. Warren Petersen both who are Realtors themselves have no comment on the bills passing.  Homeowners and their associations claim this bill is coursed by realtors and property managers who simply want to allow anyone into their communities, without any requirements even if they are criminals or sex-offenders.

The new law prohibits associations from having a separate set of rules on rental units than they would have on an owner occupied unit. Associations claim that by including this language in the bill, it will open the door for sex-offenders, drug dealers and criminals to move into rental units.

At first glance it was hard to figure out what many homeowners and associations were talking about until they explained it. Homeowner Associations cannot disallow criminals or sex-offenders from purchasing units, which is usually very rare. Under the new law associations can no longer disallow sex offenders or criminals in rental units as they would be imposing a separate rule than an owner occupied unit.

Many associations have rules and rental restrictions preventing investors, realtors and property managers from renting units to felons and sex offenders. Some association officials stated these rules are to keep their residents safe, especially children and the elderly.

Some Snowbirds stated that they will be "flocking out of Arizona" due to the bills passing. "We moved into this HOA because they had rules to prevent criminals and sex offenders, now your telling me the Arizona Legislator is allowing them because the Realtors decided its okay?" stated Snowbird Fran Tremblay. "We are selling our condo and looking for another state to spend our winter months and money in. Further, we as placing our Unit FOR SALE BY OWNER as not to allow the idiot realtors to make a dime from this." said the angry Snowbird.

Homeowner associations are terribly concerned that the Rep. Michelle Ugenti a Realtor herself, illegally jammed the bill thru after 4 separate attempts failed this year. The new HOA law was added as a floor amendment to SB 1454 which is a campaign finance bill and has nothing to do with HOA reform. Opponents claim the amendment is not germane to campaign finance and the passing of the bill violates the Arizona Constitution and was passed illegally.

 “It appears the Arizona Association of REALTORS® have finally found a way to circumvent rental restrictions and crime prevention programs” stated one community manager we had spoken with.

Also included in the bill was language that disallows associations from requiring a crime free lease addendum from being signed by renters. Community managers claim the addendum’s are the backbone of all crime prevention programs and are used to abate tenants that engage in criminal activity.

HOA  officials continue to investigate the bills passing, its sponsors and clearly stated the bill is contrived and falls nothing short of a conspiracy. So far we have received no comment back from Rep. Michelle Ugenti, the National Association of Residential Property Managers, Arizona Association of Realtors, Community Association Institute or the Governors office.