“De-facto” explained for Haciendas Palo Verde.
What does it mean?
“Existing in actuality, especially when contrary to or not established by law.”
De-facto Definitions | What does de-facto mean? | Best 10 Definitions of De-facto (yourdictionary.com)
Any claim to a de-facto regulation is an inherent admission the regulation is established contrary to the Law and therefore illegal.
What do you need to create it?
In an HOA, first you need the audacity to incorporate with illegal regulations to lay the foundation.
Then surround yourself with people not touched by any knowledge of the Law , so they believe every word you say.
Make sure you hand select a Vigilance Board that is not too bright and an Administrator you can keep in bondage. Feed them a mix of misinformation, and half truths and they will go right along with the fraud.
Discourage anybody who is not dimwitted enough to fall for your manipulations with bullying tactics and make it hard for them to find the truth.
How does it pay?
If you are a developer and own a lot of empty lots for sale and you can rig the way the HOA dues are set. This can save you hundreds of thousands of HOA Dues over the years. It can be actually very lucrative this way.
Do you have to maintain “de-facto” even after your lots are mostly sold?
Absolutely. You have to make sure the Administrator of your choice stays in office and you control the Vigilance board making sure it is staffed by unsuspecting and members not touched by integrity and ability to think. These type of people will even after they stumble upon the truth often continue the lies on their own, as they lack integrity and honor to correct their mistakes. Keep up the misinformation by providing dubious legal advise and obtain questionable legal opinions from lawyers you can feed to the Administrator.
Strong bullying tactics are needed to silence everybody who ever gets a glimpse of the fraud. Don’t be too shy in the choice of your measures. If possible instigate people to commit physical assault on detractors, give them the finger, and execute campaigns of defamation to make them shut up. If you did a good job in selecting the folks for your inner circle there will be enough useful people with lack of integrity support such a campaign.