Monday, December 6, 2010

The Rules are About to Change in Arizona’s RV Resort/Park Model Communities. Should a few inches really make that much of difference?

Historical Perspective

Modifications to the Long Term Space Rental Act (RV Act) (Title 19 Ch. 33 2101-2141) in Arizona’s last controversial legislative session, may mean more peace of mind and higher values for park model owners in Arizona’s RV Resort Communities. For those not intricately involved in the RV/Park Model world, it may come as a surprise that even though park models look like miniature manufactured homes, because of their size (less than 400 sq’), these snowbird winter play homes have been legally classified as recreational vehicles (RV’s) for over a decade. At first glance this may not seem like that big of a deal, but a few inches really can make a big difference.

Even though park models are produced with the same materials, on the same assembly lines and by the same manufacturers as “manufactured homes” (over 400sq’) their governing community oversight and consumer protection agencies offered by the State of are the same as those pertaining to communities for travel trailers, motor homes or fifth wheels…None. Looking a bit closer, it is easy to see how the lack of accountability in an industry can be the breeding ground for a misuse of power. Tyranny can begin with just one legal definition.

Unlike most recreational vehicles which are removed from communities during the summer months, park models are set up and maintained on the same location on an annual basis. Besides the fellowship, amenities and facilities offered by these multi-million dollar communities, there are many benefits of park model ownership. One of these is that park model owners (who often transition from a regular RV) get the benefits of a fun and active lifestyle with some of their dearest friends while at the same time, get to escape the risks often associated with pulling tons of metal behind them down winter winding roads covered in ice from their home towns to get to our sunny destination.

Park model owners typically buy and/or keep their little dollhouses fully furnished and can fly or drive down to use them and them “button them up” (as one Canadian friend put it) when they leave until the following winter season. These typically 11’ X 35’ one bedroom vacation homes offer full kitchens and baths and can be modified to incorporate larger amounts of living space with room additions often referred to as Arizona Rooms, sun patios, workshops and the like. Since many park model owners have previously lived in even smaller spaces for months at a time in their RV days, 400sq’ plus is plenty since they these folks are mostly busy outside of their homes; dancing, shopping or spending their money. They enjoy being outside getting sun or participating with others at their clubhouse community center volunteering, singing, dancing or making crafts and most importantly spending their money with our local businesses. They do this in our sunbelt state for about six months (up until around April) until they go home to be back with their families in Minnesota, Iowa, Canada or wherever else they might call home base.

According to Arizona’s Secretary of State, Ken Bennett, during the budget negotiations within Arizona State Legislature, visitors to Arizona constitute more than 3 Billion dollars in annual sales tax revenue to Arizona to support our schools, roads, educations system, and businesses. That doesn’t even include the millions of dollars collected in property taxes which are paid by winter visitors who own park models and manufactured homes even though they may not be residents of our state. That’s quite a big piece of the Arizona financial pie considering our total annual revenue doesn’t exceed 13 Billion from all sources*. Even though the majority of park models are owned by winter visitors, over the past few years of unsettled financial hardship for many, these little homes have proven to serve as an affordable housing option for many year round residents (seniors on fixed incomes) who can buy a home for as little as a few thousand dollars and pay as small of an annual fee at $2000 per year for annual space rent cost. Because these types of RV Park residents are often on fixed incomes, they cannot afford anything else or to move. They often offer services to other residents as a way to supplement their incomes by caretaking or cleaning homes for their more affluent “snowbird” friends. This is where the property rights of a resident who own a park model versus those of manufactured home owners get a little more complicated. If someone wants to exit an RV Resort and/or sell their RV such as a travel trailer, they just unhook the unit from utilities and off they go. It’s an entirely different story with Park Models.

Park Models are basically stuck wherever they have originally been placed. Park model are not built to be readily road worthy and are not easily transportable like other RV’s. They are not self contained and not meant to be pulled from location to location such as a motor home or travel trailer which may often be seen driven down the Hwy or pulled behind a truck. Once a park model is delivered to a site from the factory or sales lot, they are permanently set up, tied down and attached to permanent structures in their destination community. They can be moved but it can be a very messy and expensive process. Due to the tremendous expense associated with moving a park model to another location (which often requires the dismantle and destruction of the Arizona Rooms which have been built on to them), sellers of park models face the same challenges as manufactured home owners when it comes to selling.

Just like manufactured home owners, park model owners are bound to the rules and regulations of the communities in which they are located. RV Parks helped to create and take advantage of the loop holes in the original legislation which have given more authority to RV parks than those found in laws associated with manufactured home communities. One of these relates to the rights of an owner of a park model when selling. Because a park model is most often found on leased land (not real estate), they do not have access to a multiple listing service such as those offered on residential real estate by regional real estate listing services. Park model owners become entirely dependent on drive in traffic and word of mouth to market their properties. Corporations and partnerships which have purchased these communities have imposed community rules which prevent the home owner from posting a “for sale” sign and/or require that the resident use the internal sales office (often owned by the community) to sell their home. It is not surprising that the homes which are marketed the most are the ones owned by the community and not the ones listed that have “already paying space rent residents” in place.

Because of this, these individual sellers have been limited in the amount of outside exposure they need to reach buyers. In most cases there is a conflict of interest because their landlords are their competition. This fact intimidates many who feel obligated to list their home to stay on the good side of the community and/or feel afraid to confront the lack of showings of their homes because of their fear of being evicted or ostracized. Many communities have passed rules which state that residents are not allowed to post their own for sale sign in the window of the home they are trying to sell thus not attracting buyers who might be driving through the community looking for a prospective purchase.

In addition, if a park model resident becomes incapacitated or deceased, out of state family members are often left to face the dilemma of liquidating the property. They face the option of “giving the home away”, turning over their titles to the community ownership, or maintaining the annual liability ($3000-$10,000). The other option is to pay thousands of dollars to remove the home from the community. If a home is removed from a community the resident or representative of the resident are most often required to return the lot from which the home is removed to its “original condition” (tearing up concrete, tearing down Arizona Rooms, removing plants and trees, etc.). It is much more difficult to leave an RV Resort if you don’t own the type of RV that can be unhooked from utilities and simply driven or pulled out of the community.

Senate Bill 1146 (SB1146) amends ARS 33-2102 and 33-2132 C,6 to say that “A landlord shall not: prohibit a tenant from advertising the sale or exchange of their property including the display of a “For Sale” or “Open House” sign on the recreational vehicle… Further ARS 33-2132 states amends C to ad #7 which now says that” A landlord shall not: 7. Require a tenant or prospective tenant to use any specific agency, manufacturer, retailer or broker.

CLICK HERE FOR PRINTABLE VERSION OF SB1146(Chaptered)
Another problem in many communities is that because of the language in the original legislation (passed by community owners and community owner advocates in 1999), park model owners have been able to evict an RV park resident “without cause”. The RV act drafters copied much of the language found the Manufactured Home Landlord Tenant Act (passed in the mid-80’s)which states that a manufactured home community must have “cause” (i.e. Non-payment of rent, breaking the law, change if use of land, repeated violations of the rental agreement, etc) to evict a tenant. Instead, the makers of the RV Act created a half hearted version which contained the words “without cause” and the parks have run with the implication of this power to evict for no reason for over ten years.

Up until this most recent legislation was passed, a manager/owner of an RV Resort could evict someone without cause which gave them a carte blanche “big stick” to keep residents “in line”. If someone opposed a new rule or questioned a particular park’s unfair business practices, they were often told to shut up and sit down or get out. This original “without cause” language (in the previous legislation) was also known as “subparagraph F”.

Fortunately for RV Park/Park Model residents this new legislation now has changed the rules for the park managers/owners. House Bill 2255 (HB2255) amends ARS 33-2143 to exclude park trailer (park model) residents from the “without cause” clause. This means that a manager of a community cannot “non-renew” a lease without a good cause. (See ARS 33-2143 G. 1, 2, 3, 4)

CLICK HERE FOR A PRINTABLE VERSION OF HB2255 (CHAPTERED) (UTILTIES/EVICTION)
There is still much work to do to level the playing field for residents of RV Resort communities and stop some of this abusive misuse of power, but at least the stage has been set. Even one of the legislators who helped to pass the legislation indicated that when she first moved to Arizona she thought of buying a park model. They are so cute!

Please visit our website to see entire bills: ParkModelOwners.comOr call our office: 480-699-4424
E-mail: KaraKHolt@gmail.com

We hold these truths:
According the an excerpt of the 5000 Year Leap p.172 Justice George Sutherland of the US Supreme Court once told the New York State Bar Association: It is not the right of property which is protected, but the right to property.
Property, per se, has no rights; but the individual-the man- has three great rights, equally sacred from the arbitrary interference; the right to his LIFE, the right to his LIBERTY, the right to his PROPERTY...The three rights are so bound together as to be essentially one right.
To give a man his life but deny him his liberty, is to take from him all that makes his life worth living. To give him his liberty but take from him the property which is the fruit and badge of his liberty is to still leave him a slave.
(Principal or Expedient? Annual Address to the New York State Bar Association, 21 January 1921, p.18)

Tuesday, July 6, 2010

Victory for Park Model Owners!

New Arizona Park Model Laws Effective July 31, 2010

BACKGROUND
Active Resort Properties is the premier sponsor of the Moms and Pops of America (MAPOA). MAPOA is a volunteer based grass roots advocacy organization founded to represent a voice in Arizona State legislature for seniors and small businesses. Membership is FREE and encouraged by all winter visitors who wish to stay informed about legislation which could affect their lives and investments in Arizona. For more information about MAPOA, please visit http://www.momsandpopsofamerica.com/ or email our lobbyist at: karakholt@gmail.com.

During the 49th Second Regular Legislative Session, we were able to successfully pass two very important bills which substantially amend the Long Term Space Rental Act pertaining to the property rights of park model/park trailer owners in Arizona. The enforcement of these bills through the Arizona Judicial system should ultimately help owners of park models maintain higher values for their properties and certainly grant some additional peace of mind for those currently living in or anticipating residency in one of these types of communities.

These two bills (SB1146 and HB2255) were signed into law by Governor Brewer in April and May of 2010 and have an effective date of July 31, 2010. Once these laws become effective, it will be against the law for a community to prevent a park model owner from hiring an outside broker to assist them in selling their home, prohibit for sale signs and open house signs including those which display their or their agents name and contact information and will not be able to essentially evict residents when they feel like it. For the past decade, park model owners have been denied the same rights under the law as manufactured housing owners in regard to their Constitutional Rights to dispose of their property.

Over the past ten years various groups have attempted to get this modified in legislature and it wasn’t until this last legislative session that this actually happened. Now, park model owners will no longer have to bow down to unfair and unethical practices of many community ownership that have leveraged the legal loopholes to their financial advantage making it nearly impossible for a park model owner to compete with their landlord for buyers.

As anyone knows that has ever lived in a park model/RV resort, the lifestyle, friendship and fellowship of these types of communities is unparalleled. Now fun in the sun has a little bit more level playing field. The softball players should like that!




HERE ARE THE TWO BILLS:

SB1146
SB1146 amends; Title 33 Ch.19 Article 1 ARS 33-2102. Definitions 17(c) defining a park trailer as a PARK MODEL interchangeably which refers to an RV that was originally mounted on wheels and which the wheels have been removed and whose gross trailer area is not less than 320 sq’ and not more than 400 sq’ when it is set up.

In the same Title 33, SB1146 also amends; Ch.19 Article 3 ARS 33-2132. Rules C(4) WITHIN 10 DAYS OF A WRITTEN REQUEST BY THE SELLER OR PROSPECTIVE PURCHASER, A LANDLORD SHALL NOTIFY THE SELLER AND THE PROSPECTIVE PURCHASER IN WRITING OF ANY REASONS FOR WITHHOLDING APPROVAL OF A PURCHASE PURSUANT TO THIS PARAGRAPH. THE NOTICE TO THE SELLER SHALL IDENTIFY THE REASONS IN SUMMARY FASHION CONSISTENT WITH APPLICABLE FEDERAL AND STATE CONSUMER PROTECTION LAWS AND SHALL INFORM THE SELLER THAT THE SELLER SHOULD CONSULT WITH THE PROSPECTIVE PURCHASER FOR MORE SPECIFIC DETAILS and C(6) {a landlord shall not}; Prohibit a tenant from advertising the sale or exchange of the tenant’s recreational vehicle, INCLUDING THE DISPLAY OFA “FOR SALE” OR “OPEN HOUSE” SIGN ON THE RECREATIONAL VEHICLE STATING THE NAME AND CONTACT INFORMATION OF THE OWNER OR AGENT OF THE RECREATIONAL VEHICLE. IN ADDITION, a tenant may display a sign on a central posting board in the park that is reasonably accessible to the public seven days a week during daylight hours. And C(7) {a landlord shall not} REQUIRE A TENANT OR PROSPECTIVE TENANT TO USE ANY SPECIFIC SALES AGENCY, MANUFACTURER, RETAILER OR BROKER.

HB2255

Hb2255 amends; Title 33 Ch.19 Article 4 ARS 33-2143. Termination or nonrenewal of rental agreement by landlord; noncompliance with rental agreement by tenant: failure to pay rent: notice: damages: definition. “SUBCLAUSE F” EXCEPT FOR THOSE RECREATIONAL VEHICLES THAT ARE PARK TRAILERS AS PRESCRIBED IN SECTION 33-2102, a landlord may refuse to renew a rental agreement without cause by serving written notice to the tenant to renew a rental agreement without good cause by serving written notice to the tenant at least ninety days before the end of the rental agreement. Besides this language, there were limitations placed on the percentage of fees landlords may charge for utilities. Please visit the http://www.azleg.gov/ website for a full view of these two bills including a complete history of the progression of the bills as they were passed and ultimately signed by Governor Brewer.

Acknowledgements:

The passing and signing of these bills were a huge victory for park model owners thanks to those who had the courage and willingness to stand up and share their stories before the Arizona State Legislature. A special thanks goes to all the small “mom and pop” businesses that served as distribution points for our literature to make these issues known to voters in Arizona who were willing to stand by their winter visitor friends. Much gratitude is owed to Senator John Huppenthal and Senator Barbara Leff for their sponsorship and assistance to get the bill passed and to Governor Jan Brewer for signing the bill into law.

Thanks also to Representative Cecil Ash, the previous owner of Viewpoint RV Resort, for helping to get the votes in the House and all of the other legislators who were willing to vote in favor of these bills. These are very big first steps which now set policy to give our winter visitor friends’ equal protection under the law in some of their property rights. A special thanks to Gerry Adcock, Dan Washburn, Marge Webb and Jean Creagan for their guidance, support and testimony. An of course Earl Lundin, my initial one and only live testimony that made all the difference in the hearts of our legislative gate keepers.

Thank you for this opportunity to serve you!

Please feel free to contact our office for more information: 1-800-478-3864

According the an excerpt of the 5000 Year Leap p.172 Justice George Sutherland of the US Supreme Court once told the New York State Bar Association: It is not the right of property which is protected, but the right to property. Property, per se, has no rights; but the individual-the man- has three great rights, equally sacred from the arbitrary interference; the right to his LIFE, the right to his LIBERTY, the right to his PROPERTY...The three rights are so bound together as to be essentially one right. To give a man his life but deny him his liberty, is to take from him all that makes his life worth living. To give him his liberty but take from him the property which is the fruit and badge of his liberty, is to still leave him a slave. (Principal or Expedient? Annual Address to the New York State Bar Association, 21 January 1921, p.18)





Saturday, April 24, 2010

New Law Passes Protecting Property Rights for Park Model Owners

All mankind... being all equal and independent, no one ought to harm another in his life, health, liberty or possessions.
- John Locke


Park Model Owners Rights When Selling! SB1146 is now law. Leff Makes Right.

On April 20, 2010, SB1146 was signed into law by Arizona’s Governor Jan Brewer. This bill amends ARS 31-2102 of the Long Term Space Rental Act AKA RV Act (LTSRA). The RV Act pertains to leases of land to park models owners (RV Resort residents who rent annual spaces containing permanent homes) which exceed 180 days. This new law change addresses the discrimination that many RV/park model owner residents have faced over the last decade in regard to their private property rights. When the RV Act was passed by state legislature in 1999 certain provisions were left out that could have protected thousands of residents from losing their homes over the last 10 years.

A few land owners who own RV/Park Model communities (mostly out of state corporations) have taken advantage of these loop holes in the law and implemented rules and regulations in their communities slanted to the financial benefit of the land owner. This has contributed to the diminishment of value of a certain type of housing which is called a park model. Park models are considered personal property and like manufactured homes which are placed on leased land lots, this type of chattel are titled like cars and ownership transfers are currently facilitated through the Department of Transportation Motor Vehicle Division (MVD). A resident of an RV/Park Model community and who holds title to this type of home also maintains a home owner’s insurance policy, pays property taxes and an annual space rent to the land/community owner.

SB1146 helps to “level the playing field” between the interest of the land owner and the park model (chattel) owner. This law prevents a community from prohibiting individual for sale signs and the common practice of forcing a resident who owns a park model to list their home with the internal community owned sales agency as their only alternative for professional representation. Park model owners will now have more options when attempting to sell their homes than having to compete with their own community for buyers, paying costly tear down, transport and relocation fees and turning over their titles to the land owner or paying on-going annual space rent while they wait for their home to sell.

During this 49th Legislature Second Regular Session hearing and floor voting process, it was clear that many of our state legislators had never heard of a park model or understood the difference between the laws that govern them versus manufactured homes and why this bill was necessary. Since their inception in the mid 80’s park models have been categorized and legally defined as a “Recreational Vehicle” (RV). In order to maintain this definition these types of dwellings must leave their factories with a total interior square footage of 400 or less. Park models can mostly be found in RV Resorts which are not covered by the Arizona Manufactured Home Landlord Tenant Act which came into existence in the late 80’s. They do not enjoy the same protection under law as a similar factory built housing product (over 400sq’) which is legally defined as a “manufactured home”.

Perhaps park of all the confusion in understanding the difference between the two types of manufactured housing products is that to the naked eye park models look just like manufactured homes so why would they be treated differently to begin with? That’s a good questions and one that upon research can be answered by two words; lobby power. In the minutes of the committee meetings during the original legislation which created the Long Term Space Rental Act, language in the bills originally provided for the same types of protection though certain special interest associations and government lobbyist opposed their categorization as a manufactured home. A bill was introduced in the late 90’s that would have included park models under the manufactured housing laws but was defeated because their was no advocacy for the park model owners with a big enough stick to fight off their being grouped in under other laws pertaining to travel trailers and motor homes.

These typically 1BR/1BA homes are set up in communities on an annual basis with attached carports, workshops and room additions. Similar to manufactured homes, they are most often anchored to the ground, have cement driveways, and are connected to utilities, set up permanently on a lot with a necessity for on-site utilities including sewer /septic lines, water and electric. Unlike other types of recreational vehicles, park models do not contain components typical to RV’s such as holding tanks, electric jacks, hydraulic brakes, roof air conditioning, generators, etc. and are not designed to be towed behind a truck to multiple locations. Other types of RV’s such as fifth wheel trailers, motor homes and travel trailers are built to be road worthy and are self contained with no need for on-site utilities to function.

Most Park Models are manufactured in the same manufactured housing plants as manufactured homes, with similar construction specifications such as 2’ X 4” centers, drywall interior walls, cathedral ceilings, shingle roofs and built-in appliances which must be connected to on-site utilities for their operation. Since their inception, however, park models have legally been defined as a “Recreational Vehicle” (RV) and therefore are not mandated by law to be constructed according to “HUD code” as defined by the US Department of Housing and Urban Development. Rather the standards for construction must only meet ANSII standards which pertain to recreational vehicles and other non-habitable structures.

Manufactured homes are required to have HUD insignia’s and their production, installation, broker/dealer licensing and Manufactured Housing Landlord Tenant Act is administered through the Department of Administration and is maintained and enforced through the Department of Building Fire and Life Safety through the Office of Manufactured Housing. These agencies fall under the Executive branch of the Arizona government responsible for the administrative and enforcement functions required by the Department of Housing and Urban Development (HUD) through the Executive Branch of the Federal government.

During its journey though our state legislature SB1146 became an interesting hearing to witness as it brought forth questions from committee members and others which helped to clarify this type of hybrid home indigenous to certain regions of the US and owned in great part by our winter visitor population known as snowbirds. Park models became an answer to those demanding the RV park lifestyle but were unwilling to deal with the work it takes to own an actual RV. Snowbirds could still escape the cold winter months, come and play with their friends, keep a low maintenance relatively inexpensive winter home without the ongoing stress of hauling tons of steel behind their vehicles or having to face the hazards associated with winter road travel. Many have purchased second vehicles they would keep covered under their carports rather than drive on icy roads at all.

Beginning in the early 80’s park trailers became the first popular alternative to travel trailers and could be kept in the same location on an annual basis. The demand arose from many snowbirds staying for longer periods of time and wanted more space than just an 8’ portable road vehicle. The industry demand created this first type of park model that contained extra living space in the living room and bedroom areas. Once these got approved by legislature, the home owner would have an extra 80’ of living space. Many snowbirds began trading in their travel trailers, fifth wheels and motor homes for these more attractive park trailers, which were a precursor to our new modern day park models.

Once again, trailer park owners lobbied legislature to allow the larger park models in their communities while still allowing the RV parks their status and self rule under existing hotel/motel laws. This encouraged guaranteed annual income for the community owners since these types of RV’s would not be removed from the community like other RV’s winter visitors would unhook from sewer and take home with them when they would leave in the spring. Soon the demand for Park Models abound as land owners relished in their massive guaranteed annual incomes while park model manufacturers revved up production and park model “street dealer” retailers began lining their pockets.

Since the early 90’s over 150,000 park models have been sold in Arizona. Park models can range in price from $10,000 to $200,000 depending on the bells and whistles, room addition and community location. Park model communities are concentrated in the Mesa, Apache Junction, Sun City, Yuma, Show Low and Casa Grande, Arizona. They are also popular in other winter destinations such as Texas, Palm Springs, CA, Florida and certain parts of Colorado. Annual space rentals for park models range from $3000 to $10,000 per year. These homes have been manufactured by such big names as Cavco, Palm Harbor, Fleetwood, Skyline, Hallmark and others. They are produced in the same factories as “manufactured homes” by the same assembly line workers with the same materials.

Expert testimony was submitted during the Senate and House Commerce and Economic Development Hearings from professionals representing various segments of Arizona’s industries which are affected by park models including banking, transport, lending and appraisal organizations. They all substantiated that a park model is considered a manufactured home by most segments of these industries. Park model owners also testified of the many instances they or their friends where their efforts to dispose of their property were impeded by the park owned sales office. In an original testimony by Earl Lundin from South Dakota, one of his friends lost not only his home but over $30,000 from his farming operation when he had to fly back to Arizona to tear down his park model and Arizona Room to move it out of the community where he lives because he was evicted for letting one of his friends use his home without going through the park owned rental and sales office. These communities can currently evict without a cause.

One of the original provisions of the RV Act was that a landlord could non-renew a long term annual lease “without cause”. What this essentially meant was that for any reason they wanted, a landlord could request that a resident who paid annual rent on a park model could evict that resident without cause. As a result of this power, many landowners have implemented rules and regulations at their discretion and without input from the resident that if the resident doesn’t like or weren’t in place when the park model was moved into the community, the resident could be forced to leave. Tearing down and moving a park model, similar to the moving and set up fees associated with manufactured home relocation, can be a very costly and arduous process.

Once unique to winter visitors these types of homes have also become an affordable housing option for many seniors who now live in these on a year round basis and who survive solely on their social security checks and Medicare. Recreational vehicle/park model communities now report that up to 30-40% of their annual park model spaces are resided in by annual residents. Many of these annual residents offer summer care and other services for those who are gone “back home” during the hotter months and derive extra income from offering their services to those with more disposable income.

Since most park model owners are senior citizens on fixed incomes, they would rather turn over their titles to the land owner than face the stress of standing up for themselves or face the prospect of constructing their homes on another location in a different community where they could face the same dilemma. Others suffer silently not wanting to give up their friends and are forced to endure emotional, mental, physical and psychological abuse by tyrannical management than move away from their support system.

During one of the committee hearings on a related bill (HB2255), one of the Senators asked why someone would even want to live in a community where this kind of thing was happening; “Why wouldn’t a they just go get an apartment instead rather than deal with these horrible management practices”? For those unfamiliar with the type of fellowship and the active lifestyle the people in these communities experience because of their unique supportive relationships and active lifestyle, apartment living might seem like a reasonable solution. But for those who have experienced the joy of an active 55+ community, there is no doubt; this lifestyle is worth fighting for.

I once interviewed a widow who was being required to give her manager over $3000 to bring her home “up to code” for a supposed City setback violation. She and her husband had originally purchased the home from the park sales office run by the community manager. The fire code violation had not been disclosed to her when they had originally purchased the home. In fact she had a letter from the management when she and her husband bought the home that stated specifically that the home met all of the City of Mesa set back requirements and had been approved for resale in the community, signed by the manager.

This elderly woman was told that either she would pay the fee to the manager for the “upgrade” or she would not be allowed to sell her home. Her plan was to sell her smaller park trailer and upgrade to a larger full size park model with a room addition she had her eye on in the same community so she would have room for her kids to come visit. I offered to help her challenge the discrepancy in the parks disclosure of the violation and she hesitated. She said that since her husband died she didn’t know what she would do if she couldn’t escape the horrid Minnesota winter and come here to be with her friends. She would just give in to the unethical demands of the manager and “just be done with it”. She didn’t want to stand up for herself in fear of the possible retaliation.

In a recent survey of Maricopa County tax records of 6 communities, over 75% of the homes featured for sale on the communities’ website were actually owned by the community or others related to the management/ownership interest. These park owned homes are often advertised with “rent specials” and other special incentives on selected new and pre-owned “units”. The specials of course are not extended to the listings of existing residents who struggle to compete with their own community for buyers. The land owner’s main goal in most cases is to fill the community so it may generate as much income as possible. If a space is filled by an existing resident and park model, the sense of urgency is less since that resident has to pay their space rent regardless of whether they sell the home or not. Of course all home sales must be approved by management prior to the consummation of any transaction, even if the home owner is selling his own home.

Some communities have restricted free trade within their properties by requiring residents to utilize services such as carpet installation, roofing companies and other services that are “approved by management” often owned by management themselves. This has hurt dozens of local mom and pop businesses who once having a strong business presence in certain communities have been denied entrance to communities and threatened with trespassing violations they should continue to service their clients once the park has determined they are no longer authorized. Communities have taken the position of judge and jury claiming the right to void business contracts to which they have no interest.

Kara Holt, the President of Active Resort Properties Management Group, LLC a firm which specializes in manufactured home and park model sales to retirees in Arizona, formed a grassroots lobby organization called the Moms and Pops of America to address legislative issues affecting seniors and small business. She and others were the proponents of this legislation which became sponsored by Senator John Huppenthal and amended in the CED Committee by Senator Barbara Leff. Senator Leff also amended HB2255 which would limit the administrative fees imposed by communities for utility charges and remove the ability of these types of communities to evict “without cause”.

If HB225 passes it would empower park model residents to not live in fear of being evicted or losing their homes. If this legislation is passed some of the misused power could be taken away from unscrupulous management teams currently fueled by existing statute which allows the “without cause clause” to be used as an imminent threat to the elderly. This threat is often used (like a switching stick shown once in a while to a disobedient child yet kept in the closet) just to remind residents of what could happen to them if they are not compliant to whatever demands the manager deems appropriate; disclosed, written or not. Even though there are many well run, ethical communities which do not allow these practices in their communities, these problems remain with the ones that do. I guess what I heard once is true; “Laws aren’t made for the good apples”.

Support can be shown for this bill to our Arizona State Legislators by visiting the www.momsandpopsofamerica.com website and clicking on SUPPORT HB2255.
To support the volunteer lobbyist, please visit www.azActiveResorts.com to buy or sell your pre-owned park model or manufactured home.

Acknowledgements:

Thanks to my son for being so patient, helpful and for filming the initial hearing of this bill. Thanks to Earl Lundin for being the one testimony in the beginning that made all of the difference. Thanks to Senator John Huppenthal, the bill sponsor and Senator Barbara Leff for allowing her committee to hear this bill. Thank you to all of the Senators who voted unanimously for this bill and those Representatives who voted to pass this bill. Thanks to Governor Brewer for signing this into law. Thanks to my office staff that put up with the endless deadlines and extra workloads; Peter Avery, Linda Luna and others. Thanks to the Phillip Austin Law Firm, Gerry Adcock, Jean Creagan, all the local businesses which let me put up posters and announcements including the Wild Berry Café, Weiss Guys Car Wash and the Bavarian Point Restaurant. Thanks to the experts who provided their testimony and the dozens of others who were willing to trust me enough to share their stories despite their fears. Thank you to Margaret Webb, the owner of the Raindance and Sundance Mobile Home parks for your testimony, speaking your mind and standing up for what is right and for being an ethical park owner. Thank you to Margaret Michelin for your encouragement and support. Most of all I thank God for his grace and promise to make a way for his people.

Senator Huppenthal is running for Superintendent for Public Instruction and Senator Leff is running for State Treasurer; please visit their websites: www.johnhuppenthal.com and www.barbaraleff.com and vote for them.

Monday, March 15, 2010

A Call to All of the Chickens from The First Hen of The Speckled Bird Society

Attention all you foxes (Red or not) who are in our hen houses;

This puts you on notice that we are tired of your invasions regardless of your twisted reasoning.

You have taken our property rights, insulted and demeaned, as well as threatened us.

Didn’t your sly FOXY MOMMA ever tell you not to mess with speckled birds!?

You have been responsible for deaths of some of our flock. NO MORE, NO MORE…

Get out of our hen houses, our coups.

Get off our property and find someone else upon whom to perpetrate your “fowl” deeds. We are going to peck you to death.

This is no threat. THIS IS A SPECKLED BIRD PROMISE.

Come on you speckled birds! It is time to let the world know what these sly and not so sly foxes have been doing while no one has been watching. Join in, tell us your stories.

Lets unite and peck them out of our houses and coups.

-Marge
First Hen of the Speckled Bird Society

http://thehenhousereport.ning.com/forum

Saturday, March 13, 2010

The Hen House Report

The Hen House Report is a new online forum for individuals whose liberties are being violated to post their experiences and resources for others to read. Instead of holding 'anger rallies", it is time for true change. The story of some chickens who got together to kill a fox which had invaded their hen house was a message of divine providence in our time. WE CHICKENS MUST GET TOGETHER AND FIGHT FOR OUR LIVES AND FREEDOM AS WE KNOW IT.

This does not mean picketing or "pecking" at those in authority. What it means is that we had better start becoming educated and involved in some capacity to understand the power structure of our state legislature to create accountability in our elected and unelected officials who have the power to pass laws and "rules" which can be enforced by police power.

Below is a letter I wrote to a woman named Marge who wrote a story that I will be posting on our new online forum: www.TheHenHouseReport.ning.com. She suffered the same type of violation of private property rights as many seniors in "retirement communities". She is 80 years old and an a wheel chair and unwilling to take it. She is the first hen of the Speckled Hen Society and a reason to hope that change can happen if we are just willing to stand and peck together.

Marge Webb is the owner of the Raindance and Sundance Mobile Home Parks in Apache Junction. She is supporting our efforts. I met her at a Tea Party meeting where I spoke to gain support for SB1146. R-Cecil Ash (previous owner of Viewpoint and now a law maker in the Arizona House of Representative) was also there and agreed he would pass his recommendation for support of our bill on to the other members of the house legislature.

Marge asked to speak to me at the end of the meeting. What she shared with me about an experience she and her husband have gone through the last few years is almost unbeleivable. It will soon be posted on: www.TheHenHouseReport.ning.com. Please click to join the moms and pops of america to receive valuable information, share experiences and join a collective force of chickens watching the hen house. We will get those foxes!

If you want to join in on posting something onto a discussion, just click here and after you sign up you can create an alias name (that others will see on the site) so that your identity will be protected: http://thehenhousereport.ning.com/main/authorization/signUp? Feel free to forward this on to whomever you think might want to be involved. God is in all of this!!!


Marge,

Sorry its been a few days since I have checked in with you. The most amazing thing has happened. If you remember when we spoke last Thursday, we were discussing what would be a good catch phrase to get the attention of our moms and pops of america and to get the point across that we must create small focus groups to keep an eye on the boards and commissions, legislature and judiciary to hold them accountable for their postions and decisions which theoretically are supposed to secure our constitutional freedom.

I have made the topic of our Property Rights Forum this Sunday reflective of the phrase you kept reiterrating: "Who's watch the fox that's in the hen house"? This will be held after church (12-4 on Sunday March 14, 2010 at the Phillip Austin law firm where our office is located: 215 N. Robson Mesa, AZ 85201. We are located on the NE corner of Robson and 2nd St across the street from the Mesa Police Department.

After you and I had spoken last Thursday, I spent the next couple of days, designing a coupon to encourage "regular folk" to get involved with my organization; Moms and Pops of America, so that we can start to get "hen house" committees together and to promote support for SB1146, the park models rights when selling bill which recently passed the Senate by unanimous vote and which is so critical to help lift some of the oppression park model owners face: http://www.azleg.gov/legtext/49leg/2r/proposed/s.1146bl.pdf

I have printed hundreds of these coupons and have begun passing them out. I also visited with Earl Lundin, the gentleman I told you about who faught an imminent domain battle in South Dakota and won. He is also supporting SB1146 and was the one who shared key testimony in the initial hearing by the Senate Commerce Committee on February 16, 2010 (click here to see this) Note: click "Watch Video and then click SB1146" to see a video of our testimony and the legislators reactions.

Anyway, while I was visiting with he and his wife Friday evening, his wife "Molly" shared with me that she had just seen a news story the day before about a bunch of chickens who killed a fox that tried to raid the hen house. Here is the link to see one of the video clips about this story. Here are one of the comments which I find very appropriate to our cause:

Just a case of a fox doing what foxes do and birds doing what birds do. It's a bit surprising that this came out as it did, but since the birds were in the coop and could hardly get away, they had one choice.............fight or die. Amazing what adrenaline will do whether it's human, fox, or bird!!

- Beverly, Oregon, USA, 05/3/2010 05:21 (Read More)
Well I thought you would appreciate the timing on this. It is God ordained that we "chickens" come together to show what we can't do alone, together we can. The chickens in the above story prove it!

I have decided to create an online forum called "The Hen House Report". The chickens can post their stories and discoveries as they expose as we begin to expose and peck the foxes who have no business in our coops. I will be working on this over the next week with our technical people but would love to post your story if you have time to jot down your story. There is another man interested in speaking to you right now who is fighting the state trying to take his moms estate.

I also met a reporter from New Channel 3 who said she would be interested in doing a story about the Park Model issues if we can get a "poster child" for that story since this bill is currently going through legislation.

I hope to touch base with you sometime today. I hope you will be able to make it on Sunday. Earl Lundin will be and is looking forward to meeting you. Please let me know if you can make it and be sure to forward this to everyone you know that might be interested or affected.

-Kara
Lobbyist for Moms and Pops of America

Monday, February 22, 2010

Moms and Pops of America-Standing Up and Silent No More!

This is an excerpt from my blog post from www.azactiveresorts.blogspot.com a few months ago. It was a letter of thanks I wrote to a professor of law in Tucson whose research study on the effects of this mortgage crisis on seniors was given press by a Los Angeles journalist. Seniors in dead end mortgages need not continue paying their mortgage payments if it means losing their lives or life savings.

The data contained in this entry is very informative and provides great insight as to the socio-economic aspects of this very special group and their affects on Arizona's economy.

Moms and Pops of America is a not-for profit organization I founded and for which I am the registered lobbyist. We represent a voice to state legislature for the benefit of seniors and small business in Arizona. Please click this link to hear the testimony given which helped to gain unanimous support for SB1146-Park Models Right to Sell. I drafted SB1146 which is a private property rights bill related to the "park model" retirement land lease housing industry in Arizona.

This legislation, if passed will give snowbirds and other seniors in Arizona the support in statute they desperately need in order to have a right to sell (dispose) their properties when rather that being forced often by necessity to turn their titles and Constitutional rights to the land owner. Currently many seniors suffer silently because of the abuse the lack of this legislation has allowed to happen.

This bill was passed (unanimously) through the Arizona State Senate Commerce Committee on 2/16/2010.

How this is important to tea party members is that the underlying concept behind this bill relates to the 14th Principle as presented in the 5000 Year Leap, p.169; "Life and Liberty are Secure Only so Long as the Right to Property is Secure". Up to this point a lack of consumer representation in legislature has allowed for despotism in senior communities which has resulted in the loss of our rights in property and the loss of the properties themselves. In addition, first Amendments rights are violated because residents may lose their homes if they resist unconscionable rules created by the land owner.

We need support NOW from voters in Arizona who are willing to let legislatures know that they will be held accountable to support our Constitutional rights in Arizona even if those whose rights are being violated are not registered voters in Arizona.

Here it is:
Over twenty years ago, I became involved with the winter visitor industry through a part time job when I came to Arizona to go to college. In 1994 I founded a unique organization that specifically catered to the needs of the 55+ retirement and vacation housing market in Arizona. I became involved with many of the entry point organizations in Arizona such as the Chambers of Commerce, Office of Tourism, BBB and my company has served as a resource for centralized information about these types of communities. Although, I cringe at our declining home values (and do everything in my power to sell homes), I am so grateful for our senior market or I wouldn't be in this business.

I believe in Arizona and love it here and want to see our economy thrive but , as God fearing United States citizens, there are lines we must learn not to cross. Over the years I have struggled to survive as a small business owner; up against the corporate giants in our industry who abuse seniors, monopolize the marketplace and blatantly violate federal anti-trust laws with no consequence. (See my blog article; Consumer Rights by Community Type).

Even though there are several well managed communities in this industry whose owners still have a "heart toward seniors", they are becoming more obsolete due to the bottom line tactics of money changer, depreciation seeking, safe harbor investors and other out of state corporations that control the lobby power and laws in Arizona.Since the beginning of this last year, I have personally come in contact with dozens of retirees who are struggling with the very issues you presented in your article.The evolution and expansion of the senior housing market in Arizona has stemmed widely from the influx of out of state retirees over the last few decades.

A large percentage of our states residents and registered voters initially began their adventures to Arizona as seasonal guests (Snowbirds), but ended up here on a permanent basis even if though many still take their RV's to Minnesota in the summertime. These "visitors" have brought billions of dollars to our state in sales tax and property taxes for homes they own even if it's not affixed to the land. Even though the vacation and retirement housing industry is appealing to those with an ability to have a second home, it also can serve as an affordable housing option for those on fixed incomes.

One gentleman bought a park model with his wife when they first retired but when she died he came here permanently to have the fellowship he found in the 55+ community.Retirees who relocate here may start off with a "park model/RV" or manufactured home in a "leased land" community and then invest in various types of real estate for permanent residences. Since I have worked with retirees from these various segments of the retirement industry, my entire adult life over the last two decades, I would like to share a deeper perspective supporting the issues you touched upon in the article.

I stand in reverence toward our seniors and am so grateful I have had the honor and unique experience of hearing the life stories of thousands of retirees, veterans and others who frequent our state from all over the United States and Canada. In 1994 I started the first property management company which specializes in locating and managing this specific type of housing in the 55+ Active Retirement Communities. I later became a park model and manufactured housing broker specializing in resales of existing "winter homes". I am also now a licensed Arizona Realtor®, and am now able to facilitate the entire spectrum within this specific market.

In 2004 I was contracted as a research specialist and consultant for a very large Chicago based corporation with land lease community holdings throughout the United States. The research project resulted in a special meeting and presentation for their investors and corporate officers. This corporation wanted to position itself to capture the up and coming "baby boomer' market which would "phase out" the older generation in the years to come. This engagement resulted in my being flown to Florida to present an independent low budget film I produced and an article later published and featured in a national senior housing magazine in 2006 entitled: "What the bleep do boomers want'?

In my efforts to determine the buying trends of boomers compared to the prior generations for this commission, I embarked on an amazing adventure into the psyches of seniors and interviewed dozens of retirees and included the perspectives from a few of those directly involved with this specialized market including Jay Butler, Director of Realty Studies at Arizona State University (please see his most recent findings). The experience of this project gave me an even more intimate understanding of the social dynamic and motivations of retirees which could be understood a little better and I was able to cross reference predictable market behavior by understanding the various generations and demographics.

As I studied and researched the historic socio-economic-cultural mindset dynamic and market triggers it was also made clear to me many of the core issues our seniors must now face to survive and exalt themselves from the mucky water. Specifically these include overcoming shame, fear of shame, religious belief systems, attitudes of entitlement, feelings of helplessness and learning the difference between personal responsibility and co-dependent relationships with authority figures. They must now pray for the willingness to stand up for themselves and find power in numbers, instead of bowing out of the responsibility they must take for their own lives.

One of my clients lives in a small manufactured home on a "little piece of heaven" in Apache Junction, she and her husband purchased before he passed away. She couldn't live in a 55+ community because she has chosen to raise her grandson whose mother died of a drug overdose. She said she couldn't understand why two of her children were so successful while the other one became another statistic of the disease of addiction. I explained to her during our first meeting that I was working on a amateur documentary about our nations snowbirds and asked her if she would be willing to share her perspective on where our country stood.

Her thoughtful reply was; "I feel like where our generation went wrong was trying to provide too much to our children (the boomers-italics mine) so they wouldn't have to do without like we did". As we continued in our conversation she wistfully recollected and shared what she remembered as a little girl around the time of the Great Depression. Her family became farmers to survive and provide for themselves. She explained how staples were rationed and stamps were traded for shoes. She said she feels like their generation "helped to create the current problems by giving their children what it took lifetimes for them accumulate". Further she admitted; "We made it too easy for them, and now they feel entitled to it'". I will most likely be forced to work with a cash buyer or investor for her property because land home financing is now almost non-existent.

My "Baby Boomer Research Project" of 2004 resulted in the identification of three specific "generational "groups/sets which the latter I was able to further identify by subsets. The three groups include; the Bob Hope Generation (Depression Era), SED Generation (Sinatra, Elvis, James Dean) and Baby Boomers. You might be interested in some of the findings outlined in this article. Currently, I am a personal witness to massive amounts of evidence that support many of the points you made in the article that could pose an even more serious threat to our seniors that we realize.Certain sects of retirees, depending on their upbringing, social norms, family values, memory and internalization levels of shame associated with their parents struggles during the Great Depression, are the ones who seem to be suffering the most.

They struggle with so much shame and guilt it is horrifying to watch. I find myself wearing many hats these days including that of a life coach/housing-grief counselor for so many seeking "permission" to move on as they struggle with their image of themselves as "bad stewards", taking on the responsibility of the current housing crisis.As I speak with them, it appears that even if they realize that they are not the ones who caused it, they still believe that they should "weather out the storm" and "take care of their business" all the while their retirement savings accounts dwindle away.

Many buy into the bullshit that it would be morally wrong to take care of themselves and instead believe that doing so would be contributing to the demise of their neighbors home values.Specifically, many of this group are retired farmers or other "lay people" that spent their time planting and harvesting, spending time with their families, working so hard to save up to pay for college and retirement that they had always hired "professionals" to take care of their financial affairs. It seems they haven't been able to process through the harsh reality that in many cases they are trading their financial futures for no chance of recouping their lost equity while they are still alive.Not only are they stressed out, they are also completely disoriented because they never dreamed they would be losing their retirement nest eggs, pensions, 401K's and homes!

These retired veterans, farmers, postal workers, teachers and so many others in this generation remain silent because they were taught not to burden others with their problems. By not sharing their pain, the shame and isolation they experience results in so much stress and constant worry that many now take anti-depressants or anti-anxiety medication. For example, last year, I came in contact with a retired GM worker that while GM was deciding whether or not to file bankruptcy, he could not even get out of bed for weeks as he suffered from depression that bordered suicidal tendencies.Others have taken their own lives.We have a moral and ethical responsibility to do something about this atrocity. We have an obligation to provide to them what they have given to America their whole lives. We must be good shepherd with our seniors. They need us more than ever.. What I am witnessing angers and saddens me beyond words because there is such an evil criminal element to what is happening.

These are the ones who fought our wars, modeled family and fellowship values, volunteered and continue to be used as the scape goat to shoulder the brunt of greed and corruption. These are the ones who only paid cash for what they bought, never over extended on credit or bought things they "couldn't afford". In fact, one couple paid cash for the house they purchased in Arizona but then later refinanced to extract enough money to hand over to medical providers to cover the the discrepancy in cost between what was "covered" by their health insurance for an open heart surgery and what was billed by the various providers and institutions involved. Fortunately for them, they had a wise attorney adviser who encouraged them to file bankruptcy before they lost their livelihood completely.The responsible retirees in our country may not be the reason we are in this economic mess but they are still the ones being used by government powers to manipulate the marketplace.

I feel an obligation to assist these folks by using my creative thinking skills to develop emotional support networks and opportunities to understand the larger "ugly" picture of things and not feel responsible for it.Even though seniors are a fast growing group utilizing the Internet as an information source, there are still countless people in the older generation who are not computer or Internet savvy and don't really want to be. They may lack digital exposure to free speech and freedom of the press as so much is automated these days. They may not have access to personal Blogs or other research findings that are not yet completely under control by government and wall street. They need face to face contact!Now, as we witness the speedy money printing press at work, the eventual interest rate hikes, additional job losses, transfers and nearing 5 and 7 Year Adjustable Rate Mortgage (ARM) expiration's will surely spur even more defaults in higher risk "sub-prime" neighborhoods where risky loans were sold between 2002 and 2006.

Rental property supply is on the increase and transient residency will follow. Investment companies are so eager to fill their new found short sale and REO acquisitions with warm bodies, they often market specifically to felons and those with bad credit willing to pay a higher rental rate and who probably do not share the older generations value system and pride of ownership. (At least in most manufactured housing communities, there is a criminal background check requirement).

As a Realtor and ex-loan officer wading my way through the short sale and REO swampy landscape, I find myself interviewing every agent and broker with whom I come in contact to gauge the marketplace from their point of view. One of the investment brokerage firms I spoke with yesterday told me that cash investors are beating out legitimate FHA qualified buyers with LS R's and proof of funds for short sales and foreclosures due to their "30% greater chance for closing" even if the cash buyer is offering 20K less for the same property! There is no doubt, this will further increase the supply of available rentals, lessen the supply of lower income properties available for primary residency we need to build relationship longevity in our communties to help them feel safe and build confidence in the market.

I am currently assisting in the formation of a private housing industry organization through a grass roots effort. The group of people that will make up this organization will consists of members that represent small business, retirement community residents, community owners, health and wellness professionals, educators, and professionals from within the estate planning, finance and real estate industries with solid and verifiable levels of integrity.We are combining efforts with the non-Partison Tea Party groups to begin the process of education and empowerment for our seniors as well as other Arizona residents. We do not need to wait for authorized non-profit groups or government endorsed entities/agencies to do this for us..

We need to take responsibility for our own communities NOW! My opinion is that the real estate and investment markets are being manipulated and controlled by greedy criminal bankers involved with the Bilderburg Group, Council on Foreign Relations (CFR) and Federal Reserve. Many people don't even realize that the Federal Reserve is a private entity controlling the market with their finger on the interest rate button and that they are not accountable to anyone. A couple of months ago, President Obama announced that he was putting the Federal Reserve in charge of the oversight of Wall Street. What a joke!Consumers are being controlled because they have been conditioned to believe what they read and see in media. Many seniors are dependent on Social Security and Medicare to survive so they want to believe in the ones giving them their handout. They have been taught to think the best in people and to be trustworthy. Fascism and oligarchy have taken over in the guise of "Free Market" and Capitalism. Limited education and awareness about the whole intricate dynamic of corruption that currently exists is tragic.

They believe and want to pass on the message that says; things are getting better, just hold on. Since I work in the 55+ land lease industry and offer affordable housing options to Arizona residents and out of state retirees, I am seeing a buying trend of exactly what you have indicated as presented in this article. I have made special provisions within the residency and qualification process required by most of the communities where relationships with decision makers serve to maintain a personal override mechanism to qualify seniors seeking residency "approval" in a 55+ land lease community on a case by case basis. By maintaining a more personal approach, managers can decide to make allowances for those with lower credit scores taking into consideration their historical payment history rather than declining their application because a mindless software program "kicked them" out and disqualified them due to internal red flag mechanisms built into the programming triggered by certain items being detected in various field of their credit reports.

So much of the waste and bureaucracy happens because we count on machines to do for us what we should be doing for ourselves and each other. We need to override the robotic systems now in place that are being given the control to steer destinies of thousands of hard working or retired responsible Americans.

I am a citizen of Gilbert, AZ and a member of the Gilbert Tea Party movement. We are working together to find creative means by which to educate and empower our communities in Arizona through "privatized" community based programs, lectures and workshops. Our next speaker meeting will be held on January 26, 2010. Stay tuned to my blog for updates on location as the Tea Party group has gotten too big for it's previous venue so efforts are being made for a assembly hall with greater capacity. The upcoming speakers include other Arizona residents and pioneers who care about preserving life, liberty and the pursuit of happiness. One of our feature speakers is State Senator John Huppenthal who has helped to pass the most massive legislation protecting Second Amendment Rights and Choice in Education. I will be supporting Senator John Huppenthal for Superintendent of Public Instruction in the next election. I am currently collecting "Clean Election Forms" and $5 contributions and a petition to get his name on the ballot. Our January topic will include; Choice, Safety and Responsibility in Education.

We will also be presenting another guest speaker that same night; Holly Craw who is a leader in the home school movement and is beginning a monthly homeschooling orientation workshop for those interested in exploring that option. Kim Grady, the State Coordinator for the Second Amendment Sisters will also be presenting information about an initiative to improve gun safety and education in schools. A cooperative effort has been formed between the Second Amendment Sisters, the Arizona Civil Defence League http://www.azcdl.gov/ , Rob Potter, certified instructor by NRA and founder of Shoot Right to draft and get sponsorship to amend existing legislation to improve standards, access and experiential learning at it relates to safety and education.

By combining and coordinating our efforts within various segments of industry, neighborhood by neighborhood, we can create a support network for our communities, utilizing our local schools and churches as meeting halls. Outreach committes can be formed to locate higher risk individuals and neighborhoods, which often include seniors and/or single parents who are getting lost in the shuffle. By utilizing a precinct model (Thanks GOP), subdivision captains will serve to direct and coordinate efforts within a 1-3 mile radius of where these workshops will be held.

We must act quickly to facilitate these resources to at risk neighborhoods designed to empower the general public by encouraging personal responsibility in it's truest sense. The seminars will be offered free of charge and will include a critical support group element for sharing and emotional nurturing. Initial outreach will be to the senior age groups but available to all. I know the time has come to help the "silent generation" and those in the "age of conformity" stand up and speak up. It is my personal opinion that they are the ones at greatest risk for mental and physical disorders associated with this obscure covert form of domestic violence and elder abuse. I would be so grateful to collaborate with you on any ideas you might have to facilitate this project and/or present you as a guest speaker at one of our meetings.

The TEA party meetings are currently being held every Tuesday. The group e-mailing list is now over 700 and attendance nears 150 per meeting, mostly seniors. (Go figure)! Please take a minute to read the additional issues seniors face in Arizona in the blog entry titled: Consumer Rights by Community Type. I am advocating for equal rights for seniors who own "personal property" homes in "private property" retirement communities in Arizona.I need help to help to draft and pass an amendment to a bill which flew through our legislature in 1998 (with lobby help-SB1261) now an Arizona Revised Statutes; Title 33 Ch. 19 which enables discrimination against retirees constitutional rights in many of the 55+ land lease communities in Arizona. In the meantime, we'll teach them fire arm safety and marksmanship!

Update on February 22, 2010: SB1146 did pass through committee on 2/16/2010. It will be heard by the Rules Committee on 2/22/2010. Please join us to support this bill and our Constitutional freedom in Arizona. The first meeting of Moms and Pops of America will be on 2/22/2010 at 10am at 215 N. Robson Mesa, AZ 85201.

Wednesday, February 17, 2010

United We Stand for the Prinicipals of Freedom SB1146 Park Models-Right to Sell

God is Good. Thank you for everyones ecouragement! On Tuesday February 16, 2010, the Senate Commerce Committee voted unanimously to pass through their committee, SB1146, a striker bill amendment; Park Models - Right to Sell provided by Senator John Huppental and Senator Barbara Leff. This bill will modify definitions and rules contained within the Long Term Space Rental Act (RV Act) of 1999. This amendment to the act in the form of SB1146 will be discussed in Caucus next week, then hopefully on to the Senate Floor and over to the House Commerce Committee to go through the process again.

As I walked up to the Senate building, I carried more notebooks, papers and copies of testimonies that I probably needed but I wanted to be prepared. I had brought the City Code Research, testimonies and letters I had received from residents, experts in the industry including the banking, appraisal and transort industies. Earl walked beside me while my son Matt trailed a bit behind as our official videographer.

We made our way across the parking lot, sidewalk and streets and walked into the Senate Building to the kiosk machines that register those who wish to speak in a hearing. You can select whether you are in support, apposed or nuetral and may indicate if you want to speak. After Earl and I logged in, we were directed to the Senate Hearing room as the pages, interns and secretaries prepared for the bills and roll call. We all sat down and got confortable and waited for our turn.

As I was sitting there next to all my piles of papers and notes, I prayed for ordert to my thoughts. I knew so much about what I was going to testify about, my fear was they I might share too much or too long. Earl wrote his points on his right hand. We discussed the purpose of this bill and that even though there are so many issues related to what wrong in the RV Act, the focus was going to be on the right to sell that is on the table.

As we waited all the legislators began to come into the hearing room along with others who either represented other bills or were there to appose or support that hearing. I had no idea who was going to be there to possible appose us. As we continued to wait my mind reflected back to just about an hour before to the dear couple who drove 30 miles just to get their testimony in my hand and notarized to to give me one that another friend of there's had given to support the bill.

It was so important to get everyone who is willing to share a story, to the table and speak up. One lady I was sure would testify decided to back out at the last minute out of fear for possible remifications which she felt could come from it.
I have driven hundreds of miles and delivered hundreds of copies of notices to dozens of businesses throughout Mesa and Apache Junction. The only organization which refused to help was Wal-Mart. That was kind of ironic I thought.

I had gotten anonymous calls and e-mails from those who were curious if the legislation had gone through the week before on February 9. 2010, the original day it was on the Senate Agenda. I was too sick and asked for it to be posponed for this week and it all worked out okay.

When it was my turn Madame Senator called my name; We will now hear Senate Bill number 1146, Kara Holt? I walked up to the podium and addressed the Senator, thanked her for sponsoring and hearing the bill, introduced myself and began.

Tomorrow, I will blog mine and Earls testimony and post a link to the azleg website. I'm glad we taped our own because the leg website seems to be having technical errors and so I was not able to overview the testimony from yesterday. Hopefully that will get fixed but if not, I will post our video on You Tube soon.
One of the Senators who voted for this to pass mentioned in his closing statement that he is sure some private property rights issues will come up. That should be interested. I wonder if a community which acts as a public accomodation could actually convince a superior or supreme court that the corporations rights were to be held in higher regard than and actual persons civil liberties.

According the an excerpt of the 5000 Year Leap p.172 Justice George Sutherland of the US Supreme Court once told the New York State Bar Association: It is not the right of property which is protected, but the right to property. Property, per se, has no rights; but the individual-the man- has three great rights, equally sacred from the arbitrary interference; the right to his LIFE, the right to his LIBERTY, the right to his PROPERTY...The three rights are so bound together as to be essentially one right. To give a man his life but deny him his libert, is to take from him all that makes his life worth living. To give him his liberty but take from him the property which is the fruit and badge of his liberty, is to still leave him a slave. (Principal or Expedient? Annual Address to the New York State Bar Association, 21 January 1921, p.18)

We have the green light and we have the support of Moms and Pops of America. I am designing a flyer and some other items to get out so others can get involved. I am working on that this weekend and will be ready to meet with everyone by Monday.

We will be meeting on Monday morning at my office located in the Phillip Austin Law Firm located at 215 N. Robson in downtown Mesa, just accross the street from the Mesa Police Department on the N/E side of Robson and 2nd St. There is a coffee shop within walking distance, so if we need more space we can all go over there. We will meet at 10am on February 22, 2010.

Please call to confirm you will be there. This legislation is so important because it will give so much more freedom to thousands of retirees who have not been able to stand up for themselves or even hava leg to stand on. We are the leg someone may need to stand up on. We are the hand that someone needs to reach out to hold, we are the voice of the one who forgot how to use theirs or didn't know they had one.
We are the Moms and Pops of America. Call 480-299-7236 or e-mail: karakholt@gmail.com

Sunday, February 14, 2010

HB2473 She'll be comin' down the mountain' when she comes...

On Wednesday, February 10, 2010, the House Commerce Committee unanimously voted in favor of a "Do Pass" nomination by the HB2473 bill sponsor, Michele Reagan. It was noted by the sponsor that the regulatory control model associated with manufactured housing transactions was probably way past due and that despite those opposing the legislation, that HB2473 will be passing through the regular channels to become law.

My testimony in opposition to this bill seemed to help emphasize the need for an industry consensus of future amendments to the drafted legislation as it makes its way through the committee channels. It was agreed that an industry wide task force be formed to prepare a way for consequences of this bills passing. Debra Blake, the Deputy Director for the Department of Building Life and Fire Safety is spearheading this committee and has appointed individuals to form this task force group representative of the various factions of the industry it will affect. These include representatives of AAMHO, MHCA, AHA and yours truly; Moms and Pops of America.

It seems that MHCA disagrees that their interest was not fully represented in the "consensus" between all parties before the presentation to the House Commerce Committee, and the final language of the bill remains to be seen. Still some very important questions remain. If the "Department" should be dismantled, who assumes the duties of the Director and Deputy Director who serve as the only balance of power of the Board of Manufactured Housing? I understand that the "five year" rules audit DEFLS's continued existence relies upon the approval of the governor and addressed in a "Sunset Review" forum coming in 2011?

Becoming educated about the legislative process and active industry involvement are now necessary for small businesses as we face this tipping point in Arizona's economy. We need not sit by and hope that the big guys are going to get it handled for us. We must take responsibility for our own segment of the housing industry and be bold in our display of concern and contribution. New ideas and perspectives must be considered while tried and true business practices respected.

During these winds of change, perhaps smaller, more focused organizations are now the solution to find practical solutions for the inevitable unknowns such shifts of power will bring upon us. It has been suggested that the resale dealers simply renew their memberships with AHA and hope for council to represent their interests with equal levity to those of AHA's other longstanding members base? Whose interests will be represented when the time arises that a factions of resale brokers sentiments compete with those of it manufacturers or retailers? Who will take the back seat or be forced to concede their position? What protocol or bylaw within this organization addresses this possible conflict of interest?

Besides legislative agenda items, resale brokers who unify now can begin to form a consensus to form a uniform transactional model specific to the manufactured housing industry. Agenda items could include the creating of a streamline transactional process to coordinate elements of real estate transactions such as seller disclosure requirements (which items in most of these aforementioned examples are not currently statute)disclosure of community rules and leases (similar to CC& R's in real estate), agency, and comparable home evaluations "Comps".

Considering the current demand for affordable housing, the manufactured housing industry in Arizona should now flourish. Manufactured homes are now a better option than ever for those needing to downsize from their upside down positions in "stick built" residential real estate and maintain an attractive position for second home "vacation housing" ownership for our seasonal visitors.

By careful consideration of regulatory models, implementing industry cooperation forums and a fair checks and balances for power structures, Arizona can be a leader and promoter of the affordable housing industry by assuring its consumer base the discretion of responsible law making and streamline transactional processes.

Friday, February 5, 2010

HB2473 - Slam Dunk Legislation poses devastating "unintended consequences".

Friday, February 5, 2010


Scheduled for hearing by the House Commerce Committee February 10, 2010 at 9:00am

HB2473 includes drastic measures which if adopted into statute will significantly alter the transactional process, structure of enforcement and nearly eliminate consumer protection by an existing government agency in the Arizona manufactured housing industry. Bills like these which, by their passing actually alter the power structure of a governing body and standard transactional practices of hundreds of industry related organizations thereby impacting an industry's economic system, must be scrutinized very carefully by legislature to safeguard devastating "unintended consequences".

HB2473 was primarily drafted by members of three "special interest" associations; the Arizona Housing Association (AHA), Manufactured Housing Communities Association (MHCA) and Arizona Association of Manufactured Housing and RV Owners (AAMHO). AHA and MHCA are privately held statewide trade associations and are comprised primarily of land owners, manufacturers, installers and retailers of new manufactured homes; not residents of manufactured housing communities or brokers of resale homes existing in communities which represents a huge segment of "stakeholders" who would be affected by this legislation.

The Arizona Association of Manufactured Home and RV Owners (AAMHO) claims to be advocates for residents of land lease communities (a lobby for the little guy) in Arizona. During the negotiations it held with the leaders of the other AHA and MHCA and its lobbyists, it failed to notify and collect valuable input from the majority of its membership who will undoubtedly be affected by the legislation to which it is "conceding". Since AAMHO's members represents two of the 9 board members on the Board of Manufactured Housing, they may be assured through their cooperation with AHA and MHCA (who also members who serve on the Board of Manufactured Housing) of their continued presence (and job) in the industry as loss mitigaters will be allowed to continue conducting the mandated park manager education classes, which up to this point have been funded by grants associated with the interest from the consumer Recovery Fund.

The original verbiage of the bill as you see below indicates the delayed repeal (future elimination) of 41-2188 through 41-2192 which provides for the consumer Recovery Fund and Administrative Law process; the consumer’s main avenue toward relief from loss without costly litigation.

In the minutes of the Government Relations & Zoning Committee meeting held by the Arizona Housing Association (AHA) on June 23, 2009 the AHA discussed it's concern and plans to deal with various issues including permits and installation inspection delays, DFBLS/OMH, the Recovery Fund and the Board of Manufactured Housing. Streamlining the scope of installation contractors licenses through the Registrar of Contractors instead of DFBLS, creating escrow account requirements for all dealers/brokers would eliminate the need for dealer trust accounts and the consumer recovery fund and AHA would assert it's influence by utilizing it's position by it's members majority seating on the Board of Manufactured Housing.

It was discussed that there was talk of "breaking up the agency" (meaning DFBLS) and that OMH would become a "stand alone" agency or join the Department of Housing or Registrar of Contractors. It was also announced in this meeting that two additional AHA members, Sam Baird and Joe Stegmeyer had been appointed to the Board of Manufactured Housing to join it's other existing AHA and Board of Manufactured Housing members; Roger Wendt, Paul DeSanctis, Ken Anderson & Ross Waite. With the help of AAMHO and other "partners" to obtain an industry "buy-in" which they acknowledged "could be difficult", they would draft language for the amending language, find a sponsor and get the bill proposed by the January deadline for the next legislative session.

It is my position that an escrow account requirement for retailers/brokers may be the most realistic alternative to trust accounts; especially if the governing agency responsible for auditing is soon to find its last paycheck. There needs to be some type of governing board by which rules and standards are overseen, adopted and enforced but my concerns remain as follows:

1. Who represents the balance of power to oversees the activates of the Board of Manufactured Housing and their establishment and adoption of rules and standards? To whom is the "Board" accountable?

2. What process insures that the Board is truly representative of the public?

3. If the current enforcement agency DFBLS is dismantled, who is the next in charge to enforce the standards and rules and how will they be paid?

4. Since these are appointed positions and there are no term limits how do vacancies become available for others to serve a positions on this board?

5. AAMHO has served as a liaison between tenant and management to serve as a loss mitigation function for community ownership. AAMHO is paid to provide classes to managers to educate them about the LTA and tenant relations. AAMHO is not proficient in the transactional processes of dealers and do not represent a resale dealer or the resale transactions of a tenant residing in a manufactured housing community and therefor are not qualified to negotiate legislation which affects transactional processes or serve on the "Board" in such capacity where rules may be voted upon and adopted from this limited and inexperienced perspective.

6. Many residents and resale brokers are at a disadvantage when competing against a community owned new or resale "sales agency". It is standard knowledge within the resale industry, that this unfair playing field is taken advantage of by salespersons (often wearing two hats also as a community manager) who make exceptions for rules and guidelines for their buyers but which same consideration is not offered to the individual resident who chooses to sell on his own or hire and outside "competitive" sales agency.

7. Will the drafters of this legislation obtain an unfair advantage by a rule of law for the members of their other special interest trade associations they also serve? Should these drafters also hold position as rule makers and enforcers?

8. If all stake holders had been represented in the negotiations of the drafting of this bill, then these items could have been addressed and negotiated via an industry task force so a true consensus could be reached rather than addressed at a house committee level.

9. Who truly will represent the voice the people and small business; the Moms and Pops of America? Please call Kara Holt, lobbyist for Moms and Pops of America.

1-800-478-3864

Please visit http://www.azactiveresorts.blogspot.com/ to learn the history of a bill which has cause harmful "unintended consequences".

Please visit http://www.parkmodelsinarizona.blogspot.com/ to preview SB1146 (Park Models-Right to Sell). If adopted into law this bill will amend ARS 33-2132 with language which provides for consumer rights which have been violated by legal loop hole technicians for over a decade causing much harm and suffering to our seniors.

Here is the most recent draft of HB2473:

Cc: activeresortcommunities@yahoo.com
Proposed Amendment to HB 2473- Reference House Introduced Version
Explanation: We are revising the bill to call for escrow on all new transactions and on transactions for used home sales that are in excess of $50k. For used home sales transactions that are less than $50k will continue to use the recovery fund, unless the buyer requests the use of an escrow.

Components of the Amendment (NEW LANGUAGE IN RED—FEEL FREE TO MODIFY AS APPROPRIATE)
Page 1, 41-2180 should read:
A. BEGINNING JULY 1, 2011, IN CONNECTION WITH EACH TRANSACTION INVOLVING A NEW MANUFACTURED HOME OR NEW FACTORY-BUILT BUILDING DESIGNED FOR USE AS RESIDENTIAL DWELLING OR IN CONNECTION WITH EACH TRANSACTION NVOLVING A PREVIOUSLY OWNED MANUFACTURED HOME, MOBILE HOME OR FACTORY-BUILT BUILDING DESIGNED FOR USE AS A RESIDENTIAL DWELLING WITH A PURCHASE PRICE IN EXCESS OF FIFTY THOUSAND DOLLARS, EACH DEALER OR BROKER WHO IS LICENSED PURSUANT TO THIS ARTICLE SHALL ESTABLISH AN INDEPENDENT ESCROW ACCOUNT WITH AN INDEPENDENT FINANCIAL INSTITUTION OR ESCROW AGENT AUTHORIZED TO HANDLE SUCH AN ACCOUNT IN THIS STATE AS PRESCRIBED IN TITLE 6, CHAPTER 8 AND TITLE 20, CHAPTER 15.
(Note: we’re referencing title 6 and 20 since those are the financial institution statutes)
We need to add a definition of independent financial institution or escrow agent.
FOR THE PURPOSES OF THIS SECTION, “INDEPENDENT FINANCIAL INSTITUTION OR ESCROW AGENT” SHALL MEAN THE INDIVIDUAL OR ENTITY CANNOT BE CONTROLLED BY THE LICENSEE, A FAMILY MEMBER OF THE LICENSEE OR A BUSINESS AFFILIATE OF THE LICENSEE AND CANNOT HAVE MAJORITY INTEREST IN THE BUSINESS.
Page 1, 41-2180 B should read:
A. B. Each dealer or broker who is licensed pursuant to this article and who sells manufactured homes, mobile homes or factory built buildings designed for use as residential dwellings shall maintain a trust account or an escrow account with a financial institution or escrow agent located in this state and shall deposit all earnest money received for the sale of manufactured homes, mobile homes or factory built buildings designed for use as residential dwellings in such account. The department shall conduct an audit of each dealer's or broker's trust or escrow account at least once every two years. BEGINNING JULY 1, 2011, THIS SUBSECTION APPLIES TO THE SALE OF A PREVIOUSLY OWNED MANUFACTURED HOME, MOBILE HOME OR FACTORY BUILT BUILDING DESIGNED FOR USE AS A RESIDENTIAL DWELLING WITH A PURCHASE PRICE THAT DOES NOT EXCEED FIFTY THOUSAND DOLLARS. BEGINNING JULY 1, 2011, A HOME PURCHASER UNDER THIS SUBSECTION MAY REQUEST THAT THE DEALER OR BROKER ESTABLISH AN INDEPENDENT ESCROW ACCOUNT IN WHICH CASE THE DEALER OR BROKER MAY SHALL COMPLY WITH THIS SUBSECTION BY COMPLYING WITH SUBSECTION A OF THIS SECTION.

Page 3, new section O:
O. THE DIRECTOR SHAL BE RESPONSIBLE FOR PREPARING DRAFT RULES AND THE BOARD SHALL ADOPT RULES FOR COMPLIANCE BY DEALERS WITH SUBSECTION A OF THIS SECTION, INCLUDING RULES FOR ESCROW SCOPE AND INSTRUCTIONS, PURCHASER NOTIFICATION AND INFORMATION AND RECORDKEEPING REQUIREMENTS.Page 6, strike lines 41 through 43. (because the recovery fund is remaining intact for used home sales less than $50,000)
Add the following section changes :

41-2189. Funding and assessments
A. A dealer or broker of manufactured homes, mobile homes or factory-built buildings designed for use as residential dwellings shall pay, in addition to the license or renewal fee, a fee established by the board of not to exceed thirty dollars for each unit sold PURSUANT TO 41-2180 B, for deposit into the consumer recovery fund. The fee is payable to the office by the fifteenth day of the month following the month in which the sale is consummated.
B. If the balance remaining in the consumer recovery fund is less than two hundred thousand dollars, a dealer or broker of manufactured homes, mobile homes or factory-built buildings designed for use as residential units shall, when renewing a license for the following calendar year, pay in addition to the renewal fee a fee of not to exceed fifty dollars for deposit into the fund. If the balance in the consumer recovery fund exceeds four hundred thousand dollars, the board may relieve licensees of the per unit fee.
C. Chapter 6 of this title does not apply to the setting of fees under this section.
D. An amount not to exceed seventy-five per cent of the previous fiscal year's interest earned on the consumer recovery fund may be expended by the director, with the approval of the board. The expenditure shall be used for consumer and licensee education in connection with the manufactured housing and factory-built building industry, and all monies up to a maximum of fifty thousand dollars remaining unexpended and unencumbered at the end of each fiscal year may be used for consumer and licensee education in succeeding fiscal years and do not revert to the consumer recovery fund.

41-2190. Recovery from fund; claim against licensee; subrogation; appeal; statute of limitations
A. If any A consumer who is buying or selling the consumer's home SUBJECT TO THE PROVISIONS IN 41-2180 B uses the services of a licensed dealer or broker of manufactured homes, mobile homes or factory-built buildings designed for use as residential buildings and is damaged as a result of an act or omission by a licensed dealer or broker of manufactured homes, mobile homes or factory-built buildings designed for use as residential buildings which constitutes a violation of section 41-2180, or rules adopted pursuant to that section, that consumer may file a claim with the office for payment from the consumer recovery fund. The claim shall be verified by the office.
B. If any A consumer who is buying or selling the consumer's home SUBJECT TO THE PROVISIONS IN 41-2180 B If any consumer of manufactured homes, mobile homes or factory-built buildings designed for use as residential buildings is damaged by the failure of the principal to perform a sales agreement or to perform repairs under a warranty, the consumer may file a claim with the office for payment from the consumer recovery fund. The claim shall be verified by the office.
C. Upon verification of the claim for payment, the deputy director shall provide for a hearing pursuant to chapter 6, article 10 of this title.
D. The board shall pay from the consumer recovery fund whatever sum the administrative law judge finds payable upon the claim. A decision granting a claim shall include an order suspending the license of the licensee upon whose account the claim was filed. Such a license shall remain on suspension until the licensee has repaid in full, plus interest at the rate of ten per cent per year, the amount paid from the consumer recovery fund on the licensee's account.
E. Any party aggrieved by the administrative law judge's decision may apply for a rehearing by filing with the deputy director a motion in writing pursuant to chapter 6, article 10 of this title. The filing of a motion for rehearing shall suspend the operation of the administrative law judge's order pending the decision of the director upon the rehearing.
F. Except as provided in section 41-1092.08, subsection H, any person aggrieved by a final administrative decision may seek judicial review pursuant to title 12, chapter 7, article 6.
G. The consumer recovery fund has a claim against the licensee on whose account a claim was granted, OR ANY OTHER PERSON WHO CAUSED OR CONTRIBUTED TO A CLAIM PAID BY THE RECOVERY FUND for the amount paid plus costs, necessary expenses and reasonable attorney fees.
H. The deputy director is subrogated to the claim of the consumer recovery fund against the bond and other assets of the licensee. The deputy director shall deposit any amount recovered into the consumer recovery fund.
I. If, at any time, the money deposited in the consumer recovery fund is insufficient to satisfy any duly authorized claim or portion of a claim, the board shall, when sufficient money has been deposited in the consumer recovery fund, satisfy such unpaid claims or portions of claims in the order that such claims or portions of claims were originally filed.
J. A consumer pursuant to subsection A or B of this section is barred from commencing an application for payment from the consumer recovery fund later than two years from the date of sale or date of installation, whichever is later.