Association suits, claims prevalent -- chicagotribune.com: "Community associations have a big legal headache these days. They, or their representatives, are spending increasing amounts of time on lawsuits and liability claims. Some of the action is initiated by boards, and some by residents. The disputes vary, but many are prompted by the economy."
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They are prompted by the economy, and in some cases by lawyers who make a living doing covenant enforcement and assessment collection.
6 comments:
"They are prompted by the economy, and in some cases by lawyers who make a living doing covenant enforcement and assessment collection." This is a sad fact among many of these groups, it appears. In my opinion, in far too many cases there are no debts, assessments to collect on, but these abuses are fabricated. This "power" is in the wrong hands and appears to be active discrimination. Some of these groups have turned into judge, jury and executioner
"Some"? How about standard operating procedure for involuntary associations?
Consider the Associa organization. First line of business is to sell insurance to the Board. The insurance names Associa as an insured.
Second line of business is to get Board to adopt a "fining resolution" that purports to allow the Board (and its managing agent) to engage in private fining even though the restrictive covenants do not provide for such a thing.
Third step is to get the Board to adopt the "priority of payment" scam whereby the Board authorizes the management company to apply assessment funds to management company fees and attorney fees instead of assessments.
Now all the management company has to do is create fines, and collection fees out of thin air. The homeowners are threatened with foreclosure if they refuse due to the re-application of their payment against their will. These resolutions also do not show up in subdivision information packages by design (their "resolutions", not restrictive covenants, bylaws, or financials).
Fourth, bank accounts are switched to banks where Associa (or its owner) can exert undue influence over the accounts.
Fifth, all other vendors are switched where possible to vendors owned/controlled by Texas Sen Carona.
Sixth, board members are instructed regarding disclosure of HOA books, records (you can guess what kind of advice is given).
Seventh, election shenanigans are performed via proxies - another practice that follows this management company.
Now his agents cruise the neighborhood proclaiming residents to be "in violation" and turning each such neighborhood into a wretched place to live for everyone except board members. Even board members, however, share the sinking property values that result. Ask any non-board member that lives in an Associa "managed" property.
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http://www.city-data.com/forum/charlotte/485318-another-hoa-horror-story-2.html
Originally Posted by chicagocubs
As many of you know from reading my posts, I am vehemently against even the concept of a homeowners association for a single family dwelling. When I purchased my home, I was then told that an HOA existed and here were the rules. (plop!) As time went on, I became involved in the HOA and eventually became the president in order to keep things under control (or so I thought). As a former property manager for 10 years plus currently employed in the real estate industry, I knew that I had the knowlege to keep things going properly and within the scope of the area. Now, it bears noting that this property is not in Ballentyne nor Lake Norman, it is a struggling blue-collar neighbourhood with its share of gang issues and other problems. In other words, definately NOT upscale.
Well, we (like many other communities) have had our issues in collecting our relatively low HOA dues. ($100/yr). In the past, we have simply filed liens against the property and this has usually netted our funds when the property was sold or refinanced. This year, the management company pursuaded the board to use their staff attorney. I was adamant that even if we used their attorney, we would NOT foreclose on people's homes, he would simply file the lien and collect the funds. I stated my stance on that repeatedly throughout the year and the board agreed.
I have now found out that the management company has filed foreclosure proceedings against 9 homes in our community! This added to the three other (bank) foreclosures (that I know about) results in 12 foreclosures out of 110 homes. Guess where our values are going to be????
The management company has stated that they have the permission of the board to do this. I knew nothing about it. I have demanded to see this letter of authorization because, without it, I will sue for the lost equity in my home that is due to the complete incompetence of this company.
I am so angry I could spit. Obviously, I have resigned as President and have written an open letter to the homeowners explaining what has been done. I wish I could move, but, especially now, I probably couldn't get enough money to pay off my mortgage, let alone anything else!
WARNING TO ALL: STAY FAR AWAY FROM HOMEOWNERS ASSOCIATIONS. YOU WILL BE GLAD THAT YOU DID!!
I'm certainly sorry that this has happened to you.
I always wonder to myself about people that have obvious problems with HOA's...why did you buy in this area when you have an issue with, and are "Vehemently" against HOA's? With all of your experience in property management it just surprises me.
"I always wonder to myself about people that have obvious problems with HOA's...why did you buy in this area when you have an issue with, and are "Vehemently" against HOA's? With all of your experience in property management it just surprises me."
You shouldn't be surprised. HOAs are nearly ubiquitous throughout much of the U.S. and have as the author of this blog has pointed out become a private form of local government. Homebuyers can't avoid their jurisdiction anymore than they can afford county or municipal jurisdiction.
This isn't an issue of consumer preference. It's an issue of public policy that current favors the privatization of local government.
"This isn't an issue of consumer preference. It's an issue of public policy that current favors the privatization of local government."
This is exactly right. I wanted to avoid buying in an hoa community but it was literally not possible to do so. Every single neighborhood here is hoa controlled, because this area has only been developed within the last 10-20 years. Sure, I theoretically could have bought property in a more expensive part of town an hour's drive or more from work, but even if I could have afforded it (doubtful), that option was not feasible given my work/family responsibilities.
Developers and city/county planners collude to create a lucrative situation for themselves, leaving homeowners no choice but to go along.
Correction:
Homebuyers can't avoid their jurisdiction anymore than they can avoid county or municipal jurisdiction.
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