When an HOA totters financially

Arizona Homeowners Forum

Posted: 05 Jul 2017 07:44 AM PDT, Reposted 7/6/2017 What happens to a Homeowners Association as it totters financially is fascinating. In the case of the Crossings at Willow Creek, recent hearings in Yavapai County Superior Court confirmed that there is no bankruptcy alternative. That’s because a Homeowners Association is a corporation in name only. The members are on the hook for everything as it’s really a partnership. We as property owners have scheduled a Member’s meeting on July 17 at 5:00 at the Community Room at 1235 E. Gurley St., Prescott to appoint a Board, without which Judge Mackey is almost certainly likely to appoint a receiver soon. This would be analogous to a mentally ill person with millions in the bank having their bank accounts run down by attorneys and other parasites. Carpenter Hazelwood, who resigned as attorneys for the HOA last year, triggered this by arguing for a receiver to be appointed when faced with records requests pursuant to a simple AZDRE Order. It’s already acknowledged properties in the Crossings are worthless because they can’t be sold. What then could homeowners be responsible for above that? Can their property values go negative? Remember there is no insurance for the HOA now. Under a worst-case scenario, the liabilities to the HOA, and then the members, could easily amount to $20mm or more, especially if an accident takes place in the wash. That’s $250,000 each lot. So yes, property values could go negative. It takes a lot of dot connecting to figure out what is involved here and we have been doing that for almost 10 yrs. So ahead of the meeting, I will be taking the dots one by one daily to make things clearer. This will be done via the blog at www.thecrossingsatwillowcreek.blogspot.com We’ll also have the documents pertinent to the case available soon via links posted there A couple of points The Meeting is technically members only but some contractors with construction deposits are welcome Any member wishing to appoint an agent, especially an attorney, must have that approved ahead of time by us. Out of town Press will be welcome but need to be accredited first. Please do that by email to jasellers123@gmail.com There is a current investigation underway by Detective Brazell, Badge #350, at the Prescott Police. If you have relevant information to give to him you would not wish to share with us, his number is (928) 777-1925 Conversations with him leave me totally confident the meeting will be safe and not masked by threats as has previously occurred. Feel free to post questions or comments on the blog as it will not be censored except for totally outlandish comments SIMPLY ENTER YOUR EMAIL ADDRESS ON THE BLOG TO RECEIVE DAILY POSTINGS ONLY GOOGLE WILL KNOW YOU ARE WATCHING A mere selection of issues to be addressed daily will include: Why could the City of Prescott file bankruptcy over this? Why are the US Supreme Court 9thCircuit Rulings in the Kayanne Riley case so relevant? Why there will be no Big Chino without fixing the Crossings – properly? Why was the subdivision ever built in a floodplain anyway at the intersection of all the City’s water mains, including those for the Big Chino, Major Sewers, a main road, and a wash carrying more water than the Colorado River in flood -10,000cft/sec+ Is Carpenter Hazlewood looking to collect fees or did something happen with a recent foreclosure they would like to cover up? Why is Chubb Insurance engaged with high powered attorneys? – http://www.manningllp.com What is the role of Metro Phoenix Bank here? Where is Justin Scott? Where is Kathleen Yamauchi? Why did the Board, Attorneys and Management Company all resign on the same day? Who jumped ship first and why? And a lot more dots! John Sellers