Tuesday, April 28, 2009

Shake your booty, says HOA

NBC2 News - Homeowners 'irate' over booted vehiclesThe security company, Whitestone Group, at Cypress Landings, said her truck was given a boot because it was not parked on a hard surface. But the tire was really only an inch off the driveway. And Krueger owns that inch. Now, it will cost Krueger $200 to remove the boot. "I went and got the association manager, brought him down here to look at it. He said he didn't think it was excessive, and that they boot at least one vehicle a night because they need to make up for the deficiency in funds from all the people that haven't paid their dues," Krueger said.
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If HOAs try to make up for their lost assessment revenues by concocting bogus fining offenses, they will regret it in the long run.

3 comments:

Anonymous said...

Are you kidding? This has been standard operating procedure for "professionally managed" HOAs for many years in Texas. This is because the management company in particular benefits from the fining process either through 1) collecting a percentage of the fines, 2) collecting "processing" fees related to the fines, and/or 3) collecting late fees by recharacterizing assessment payments as "fines" in order to purportedly leave the owner in arrears on assessments.
There are approximately 5 bills in the Texas legislature this session to address unscrupulous practices by HOA management companies and attorneys (I know, they will claim that it was the HOA). Sen Carona has publicly vowed to oppose any attempt to halt this practice (he owns the largest legion of HOA management companies in the nation and you will find this practice tends to occur once the HOA engages his management company). See his threat at the end of the following video which someone posted from a FoxNews story on Carona's business practices of writing legislation to benefit his management companies:
http://www.youtube.com/watch?v=d1jz4OuJZcQ

Presently, industry is opposing bills that prohibit management companies from profiting through fines. The bill is HB 4693.
Watch the CAI representative try to oppose reform beginning at about 1 hr and 29 minutes into this hearing. Instead of having legislation to prohibit this practice, the industry representative wants to be contacted so that they can handle it "internally". They of course are also responsible for the "priority of payment" scam. Once these two are combined, it is open season on the homeowners and CAI wants to ensure that their unscrupulous business practices can continue:

http://www.house.state.tx.us/fx/av/committee81/90427a04.ram

CAI always tries to argue that it is okay for the board to expose homeowners to unlimited liability to management companies and HOA attorneys in order to keep assessments low.

Evan McKenzie said...

No, I'm not kidding.

Anonymous said...

Bogus fining and bogus assessments appear to be an industry standard for many within the leadership of a number of these groups. These attacks on innocent and unsuspecting homeowners are among the tactics employed by some boards and their associates to steal homes, finances and force innocent families into homelessness. Where has everyone been for the last ten years, as this has been standard operating procedure for some in the industry! Don't forget about the terrorist tactics, discrimination, property damage, harassment, legal abuse, fiction based slapp lawsuits, etc., also, employed by many within these groups!