The majority of Tract's CCRs were scheduled to expire in 2010.
Arrowhead Woods Architectural Committee Inc. had a big problem. A large number of tract CCRs were set to expire at the end of 2010 and their authority was ending.
The original creators of the CCRs for the tracts created in and after 1960 wanted the homeowners to have ultimate control and say. They did not wish for an un-elected board, selected amongst themselves to have perpetual control over the homeowners. The CCRs for those tracts had both a sunset provision and an opt-out provision allowing homeowners to separate from AWAC's control if they wished to do so.
The CCRs – Article III Section (h).
The CCRs – Article XI Sections (a) and (b).
The CCRs – Article XIII.
On December of 2010, AWAC Inc. records multiple 3-page Amendments to the CCRs.
On December 15, 2010, the President (Paul Meng), Vice President (E.A. Reilly) and Secretary (Stacey McKay Lippert) of AWAC, Inc. recorded a 3-page document (AMENDMENT OF DECLARATION OF RESTRICTIONS) affirming that they had as of that date obtained 55% of the vote in tract 8053 as well as all the other affected tracts and that it authorized the extension of the CCRs and AWAC’s administration until 2025.
However, their collection and use of non-notarized signatures was de facto invalid: null and void. That defect, in itself, means that all of the 4-digit Tracts (those formed in and after 1960) have lost their CCRs.
To extend the CCRs, the signatures of the owners of record needed to be notarized and recorded. If the actual signatures were not required, anyone could claim to have obtained the signatures and were the representatives of the property owners. Proving otherwise would be impossible particularly if the signatures were not preserved.
If that defect were not enough, many of the votes collected between 2005 and 2010 were invalid because they were of persons who were no longer property owners of record on December 15, 2010, in other words, the votes of non-property owners were cast instead of the actual property owners.
The Certificate of Amendment further stated that AWAC, Inc. President (Paul Meng), Vice President (E.A. Reilly) and Secretary (Stacey McKay Lippert) had acquired 55% of the signatures of the homeowners in each affected tract appointing themselves as their representatives and that the powers and duties of AWAC were being extended from 2010 to December 31, 2025.
However, adding mischief to mayhem, AWAC then exceeded its alleged limited extension authorization by modifying the CCRs in an attempt to cement its perpetual control. Quietly, the following three significant and unauthorized changes were made to the CCRs and then recorded with the County Recorders Office. These amendments granted AWAC a greater likelihood of perpetual power. Voting rights were removed thereby eliminating property owners over the AWAC board and notarization requirements were removed thereby making it easier to cast fraudulent votes.
-
First, an additional sentence was added to the end of Article III(h) where future successors to the architectural committee would no longer be chosen by the majority of the record homeowners but instead would be chosen by a majority of the current members of the architectural committee. The committee would in essence be picking itself.
-
Second, the future voting threshold requirement to extend the CCRs in Article XI(b) was lowered from "The owners of record of lots or building sites in said Tract having an aggregate area equivalent to not less than 55% of the total area of all of said property" to a majority (more than 50%) of the owners of record in said tract.
-
Third, the acknowledgment and recording requirements of Article XI(b) that were designed to prevent fraud and allow verification were simply removed.
AWAC Inc. 3-Page Amendment of Declaration
Click PDF to Download