Get the HOA Insurer Involved

You suspect your board may be a little naughty with community money. A board member just may be buying diapers for their grandchildren with your money, and you've decided to check it out. You kindly ask for documents and don't get them. You start to push for documents and don't get them. Then you get a threat from the HOA attorney that should you continue to press for documents the attorney will file an injunction against you. It's a common tactic, don't be offended. You voted for the Board and it feels privileged and can spend your money however it wants.

When the Board remains stubborn you can write to it's attorney or it's statutory agent to request documents. (Statutory agents can be found on the Arizona Corporation Commission website). They'll continue to play games and send responses like: your request is too broad or it's on the website (make sure you double check, but it generally isn't there). It's the delay and stall tactic trying to wear you down. You are entitled to see every single community document ... every email, every contract, every invoice, every CC&R violation etc. You are not required to be specific on why you need particular documents. Bad boards fight transparency. The next step you can take is to inform the HOA Insurer that your board will not comply with State Statutes and is refusing to provide documents. Insurers generally do not like rogue boards bc it costs the insurer a lot of money if/when a suit is filed. The Insurer should look into it, and if it finds the Board is withholding docs it very well may cancel the HOA's policy. And it should.

It's not easy to get an HOA Board to be transparent; you will need to fight. Know that the board is always going to use the "we're just volunteers" card. Don't be fooled by this, volunteer does not equate to honest. You must remain focused. Embezzlement is a serious problem in HOAs with board members or unlicensed and unregulated Management Companies (there is no oversight for MCs, it does what it wants). Nipping this in the bud is the best disinfectant. Many HOA embezzlers are never prosecuted and simply move to the next target and repeat the process. Any board that will not provide docs has something to hide. They will also smear you by labeling you a troublemaker. They may send anonymous threatening letters and have your home egged. In other words the Board, its attorney and the management company will do everything they can to stop you from seeing docs. Fight for them, they are yours. The more Boards are exposed for lack of transparency the greater the likelihood that good people surface to serve. Honest Board Members have nothing to fear. Bad Board members need to get out of the way.

Never buy in an HOA. When you live independently you always know how your money is spent.

If you have suffered HOA abuse, contact HOATruth.com. Dennis Legere is the principal advocate. Or you can reach me at EarsUp@iCloud.com. Full disclosure, neither are attorneys. We do this bc we don't like bullies. FREE.