Law meant to protect Wash. homeowners instead pushing up condo prices | KIRO-TV
SEATTLE —
In a housing market rife with new apartment complexes, there is an extremely short supply of condominiums being built and sold. Puget Sound developers point to substantial risk in building condos, due to the Washington Condo Act, a risk that does not exist for apartment development.
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What is this supposedly draconian law that developers are whining about?
It states a condo must be:
(a) Free from defective materials;
(b) Constructed in accordance with sound engineering and construction standards;
(c) Constructed in a workmanlike manner; and
(d) Constructed in compliance with all laws then applicable to such improvements.
Doesn't sound all that oppressive to me.
Saturday, May 07, 2016
The GOP's 24-hour meltdown - POLITICO
The GOP's 24-hour meltdown - POLITICO
The right wing thought that, at long last, this was going to be the year a virtuous "true conservative" made up for Goldwater's obliteration in 1964. Half a dozen of the candidates would have made them happy. Then all of them got personally humiliated and driven from the race by an unprincipled, narcissistic, quasi-fascist bully. The final blow: they are now expected to support him. No wonder they are...unhappy.
It will be interesting to see how far the American Mussolini's cult of personality can take him. His followers are so swept away by his empty promises to make everything "great," with "so much winning," that they have lost all capacity for critical thought.
The right wing thought that, at long last, this was going to be the year a virtuous "true conservative" made up for Goldwater's obliteration in 1964. Half a dozen of the candidates would have made them happy. Then all of them got personally humiliated and driven from the race by an unprincipled, narcissistic, quasi-fascist bully. The final blow: they are now expected to support him. No wonder they are...unhappy.
It will be interesting to see how far the American Mussolini's cult of personality can take him. His followers are so swept away by his empty promises to make everything "great," with "so much winning," that they have lost all capacity for critical thought.
Thursday, May 05, 2016
Sperlonga, Equifax to record HOA payments for credit scores | 2016-05-04 | HousingWire
Sperlonga, Equifax to record HOA payments for credit scores | 2016-05-04 | HousingWire:
"Sperlonga will use its technology to automatically extract assessment payment data and account status every month for all HOA property owners, according to a release. It will then report the account data to Equifax.
"We believe this will have a major impact on the HOA industry," Sperlonga CEO Dan Berman said. "According to the Community Association Institute, associations along with property management companies collect approximately $70 billion in assessment payments each year and CAI estimated there were at least 333,000 community associations in the U.S.""
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Nobody knows how much HOAs and condo associations collect because government has washed its hands of any responsibility for this massive privatization of services and infrastructure. But in any event, now people who fall delinquent on their HOA assessments will have a problem with their credit rating.
"Sperlonga will use its technology to automatically extract assessment payment data and account status every month for all HOA property owners, according to a release. It will then report the account data to Equifax.
"We believe this will have a major impact on the HOA industry," Sperlonga CEO Dan Berman said. "According to the Community Association Institute, associations along with property management companies collect approximately $70 billion in assessment payments each year and CAI estimated there were at least 333,000 community associations in the U.S.""
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Nobody knows how much HOAs and condo associations collect because government has washed its hands of any responsibility for this massive privatization of services and infrastructure. But in any event, now people who fall delinquent on their HOA assessments will have a problem with their credit rating.
Man admits stealing $2.5M from homeowner associations - The Washington Post
Man admits stealing $2.5M from homeowner associations - The Washington Post:
"BALTIMORE — A man who prosecutors say financed a lifestyle of nightclubbing, NBA games, manicures and limousines by stealing $2.5 million from his clients has pleaded guilty to wire fraud.
The U.S. Attorney’s Office said in a news release that 39-year-old William Francis of Elkridge entered the plea Wednesday in federal court in Baltimore.
Prosecutors say Francis owned two companies which managed HOA reserve funds, which were typically held in savings or money market accounts.
According to his plea agreement, Francis defrauded at least 51 of his company’s HOA clients by taking reserve funds.
Prosecutors say Francis spent the money on Washington Wizards games; adult entertainment venues and nightclubs; dog grooming services; a nail salon, and a limousine service.
Francis faces a maximum of 20 years in prison at sentencing Sept. 13."
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Yet another embezzlement from HOA reserve accounts. When will state legislators understand that there has to be oversight of HOA/condo finances?
Thanks to Shu for this link.
"BALTIMORE — A man who prosecutors say financed a lifestyle of nightclubbing, NBA games, manicures and limousines by stealing $2.5 million from his clients has pleaded guilty to wire fraud.
The U.S. Attorney’s Office said in a news release that 39-year-old William Francis of Elkridge entered the plea Wednesday in federal court in Baltimore.
Prosecutors say Francis owned two companies which managed HOA reserve funds, which were typically held in savings or money market accounts.
According to his plea agreement, Francis defrauded at least 51 of his company’s HOA clients by taking reserve funds.
Prosecutors say Francis spent the money on Washington Wizards games; adult entertainment venues and nightclubs; dog grooming services; a nail salon, and a limousine service.
Francis faces a maximum of 20 years in prison at sentencing Sept. 13."
--------------
Yet another embezzlement from HOA reserve accounts. When will state legislators understand that there has to be oversight of HOA/condo finances?
Thanks to Shu for this link.
Wednesday, May 04, 2016
Bill would grant tax deduction for homeowners association assessments - Chicago Tribune
Bill would grant tax deduction for homeowners association assessments - Chicago Tribune:
"The same residents also pay local property taxes to municipal, county or state governments. But unlike other homeowners, only their local property tax levies are deductible on federal tax filings. Their community association assessments that pay for government-type services are not. Now a bipartisan group of congressional representatives thinks that's inequitable and needs to be corrected. Under a new bill known as the HOME Act (H.R. 4696), millions of people who live in communities run by associations would get the right to deduct up to $5,000 a year of assessments on federal tax filings, with some important limitations:
• Deductions would phase out if their incomes exceed $115,000 for single filers, $150,000 in the case of joint returns.
• The property would have to be their principal residence, not a vacation or rental home.
• To qualify for write-offs, the assessments would have to be "regularly occurring," mandatory levies that directly benefit taxpayers' properties and that exist solely because of their automatic membership in the homeowners association.
The bill's primary author is Rep. Anna G. Eshoo, D-Calif. Co-sponsors include Reps. Mike Thompson, D-Calif., and Barbara Comstock, R-Va.. Though the bill has little chance of moving through the House or Senate during this election year, it sends a message to the legislative committees now working on possible tax code changes for next year: Congress needs to acknowledge the role the country's community associations play in providing municipal-type services. The way to do it is to allow deductions on a capped amount of the money residents are required to pay to support community services."
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The bill has industry support. I would be surprised if this passed, because it would cost billions of dollars in lost income tax revenues, but it it interesting to see bipartisan support for the idea. Here is link to the text of the bill.
"The same residents also pay local property taxes to municipal, county or state governments. But unlike other homeowners, only their local property tax levies are deductible on federal tax filings. Their community association assessments that pay for government-type services are not. Now a bipartisan group of congressional representatives thinks that's inequitable and needs to be corrected. Under a new bill known as the HOME Act (H.R. 4696), millions of people who live in communities run by associations would get the right to deduct up to $5,000 a year of assessments on federal tax filings, with some important limitations:
• Deductions would phase out if their incomes exceed $115,000 for single filers, $150,000 in the case of joint returns.
• The property would have to be their principal residence, not a vacation or rental home.
• To qualify for write-offs, the assessments would have to be "regularly occurring," mandatory levies that directly benefit taxpayers' properties and that exist solely because of their automatic membership in the homeowners association.
The bill's primary author is Rep. Anna G. Eshoo, D-Calif. Co-sponsors include Reps. Mike Thompson, D-Calif., and Barbara Comstock, R-Va.. Though the bill has little chance of moving through the House or Senate during this election year, it sends a message to the legislative committees now working on possible tax code changes for next year: Congress needs to acknowledge the role the country's community associations play in providing municipal-type services. The way to do it is to allow deductions on a capped amount of the money residents are required to pay to support community services."
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The bill has industry support. I would be surprised if this passed, because it would cost billions of dollars in lost income tax revenues, but it it interesting to see bipartisan support for the idea. Here is link to the text of the bill.
Tuesday, May 03, 2016
Documents meant to combat fraud in condo elections raise more questions | Miami Herald
Documents meant to combat fraud in condo elections raise more questions | Miami Herald: "Representatives of Sunshine Management Services, which manages the complexes, said it implemented the new system of securing affidavits to prevent electoral fraud. The company has said residents have repeatedly complained about falsified signatures on the ballot or ballot envelopes in elections of association boards.
But an investigation by El Nuevo Herald and Univision 23 showed that the affidavit system put in place by the company has substantial irregularities."
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Indeed.
But an investigation by El Nuevo Herald and Univision 23 showed that the affidavit system put in place by the company has substantial irregularities."
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Indeed.
Monday, May 02, 2016
Hundreds protest against condo fraud in South Florida | Miami Herald
Hundreds protest against condo fraud in South Florida | Miami Herald:
"More than 250 South Florida condo residents marched Saturday through the streets of Doral to demand that authorities take steps to stop a wave of fraud hitting their neighborhoods.
With posters, flags and whistles, the group of protesters marched through downtown Doral shouting about alleged abuses by their board of directors and the private companies hired to manage the condominiums.
“We want our demands heard in Tallahassee,” said William Mendieta, one of the organizers of the march and resident of the Las Vistas condos in Doral. “We have left behind apathy and indifference to unite with other condos so that together we can make one request: Justice!”
It was the fifth public protest since an investigation by el Nuevo Herald and Univision 23 in March revealed the systematic frauds facing condos in Miami-Dade County — including at least 84 fraudulent votes in November election for the board of directors at The Beach Club condos in Fontainebleau Park, and a fraudulent bidding process in which a company won a $5.2 million contract in a competition against two front companies."
'via Blog this'
"More than 250 South Florida condo residents marched Saturday through the streets of Doral to demand that authorities take steps to stop a wave of fraud hitting their neighborhoods.
With posters, flags and whistles, the group of protesters marched through downtown Doral shouting about alleged abuses by their board of directors and the private companies hired to manage the condominiums.
“We want our demands heard in Tallahassee,” said William Mendieta, one of the organizers of the march and resident of the Las Vistas condos in Doral. “We have left behind apathy and indifference to unite with other condos so that together we can make one request: Justice!”
It was the fifth public protest since an investigation by el Nuevo Herald and Univision 23 in March revealed the systematic frauds facing condos in Miami-Dade County — including at least 84 fraudulent votes in November election for the board of directors at The Beach Club condos in Fontainebleau Park, and a fraudulent bidding process in which a company won a $5.2 million contract in a competition against two front companies."
'via Blog this'
Puerto Rico Will Default on Government Development Bank Debt - Bloomberg
Puerto Rico Will Default on Government Development Bank Debt - Bloomberg
"Puerto Rico will default on a $422 million bond payment for its Government Development Bank, escalating what is turning into the biggest crisis ever in the $3.7 trillion market that U.S. state and local entities use to access financing...A default on those constitutionally guaranteed bonds would be the first by a state-level borrower since Arkansas missed payments on its debt in 1933. That would likely trigger a restructuring of the commonwealth’s $13 billion of general obligations, which would be the largest-ever in the tax-exempt market."
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This situation has been building for a long time. Puerto Rico has $70 billion in muni bonds, they have been in the grip of a severe recession for a long time, and now they are in the process of defaulting on these bonds, piece by piece. There is an unusual problem in that Puerto Rico is a US territory, not a sovereign nation, so it can't go to the International Monetary Fund or pursue other sovereignty-related remedies. It isn't a state, either, and it can't go bankrupt. Congress passed law in 1984 saying that US territories can't use Chapter Nine, the bankruptcy provision for local governments. So Puerto is betwixt and between, as the saying goes. They can't pay and they can't discharge or reorganize the debts, so they are defaulting. The Republican-controlled, do-nothing, blame-Obama-for-everything Congress could fix this, but so far they haven't. Republican Speaker of the House Paul Ryan clearly wants to take action.
Sunday, May 01, 2016
LaHood alleges misuse of HOA funds for pool - San Antonio Express-News
LaHood alleges misuse of HOA funds for pool - San Antonio Express-News
"More than $300,000 in homeowner association funds for a swimming pool that was never built are at the center of a criminal case filed against two men with ties to the city of Windcrest.
Bexar County District Attorney Nico LaHood said Robert Colunga and Tom Pittman were indicted by a grand jury in April on the first-degree felony charges. Although a civil lawsuit is pending in the project, LaHood said he believes a criminal case also is warranted against the two men, and possibly others, the case involving plans for a pool to be built in San Antonio’s Stone Oak area."
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Texas is about as laissez-faire as any big state when it comes to regulating what goes on in HOAs. And these private associations have a lot of power over people there. Civil litigation alone doesn't get the job done. With $300K in losses, it isn't hard to see why criminal charges are being filed. The question is, how many other associations have similar problems that haven't come to light?
"More than $300,000 in homeowner association funds for a swimming pool that was never built are at the center of a criminal case filed against two men with ties to the city of Windcrest.
Bexar County District Attorney Nico LaHood said Robert Colunga and Tom Pittman were indicted by a grand jury in April on the first-degree felony charges. Although a civil lawsuit is pending in the project, LaHood said he believes a criminal case also is warranted against the two men, and possibly others, the case involving plans for a pool to be built in San Antonio’s Stone Oak area."
-----------------
Texas is about as laissez-faire as any big state when it comes to regulating what goes on in HOAs. And these private associations have a lot of power over people there. Civil litigation alone doesn't get the job done. With $300K in losses, it isn't hard to see why criminal charges are being filed. The question is, how many other associations have similar problems that haven't come to light?
New Local Law Says Parents of Bullies Must Pay Fines if They Don’t Control Their Kids | LawNewz
New Local Law Says Parents of Bullies Must Pay Fines if They Don’t Control Their Kids | LawNewz
Interesting approach. I'm always intrigued by local ordinances that experiment with unusual approaches to solving problems. There is something called "vicarious liability," where one person is held legally responsible for the conduct of another person, but I've never read about it being applied in this way. Bullying is a big problem and currently nobody pays for it except the kids who get bullied. Teachers and principals pretend they don't know it is happening, parents deny that their precious snowflake would ever bully anybody, the police pretend that crimes like assault and robbery aren't crimes if they happen in a school, and the bullies get away with it. So here is an effort to fine the parents of the bully. But is it legal to impose fines on parents for not preventing something their kid did when he was at school, supposedly under the control of school officials?
Interesting approach. I'm always intrigued by local ordinances that experiment with unusual approaches to solving problems. There is something called "vicarious liability," where one person is held legally responsible for the conduct of another person, but I've never read about it being applied in this way. Bullying is a big problem and currently nobody pays for it except the kids who get bullied. Teachers and principals pretend they don't know it is happening, parents deny that their precious snowflake would ever bully anybody, the police pretend that crimes like assault and robbery aren't crimes if they happen in a school, and the bullies get away with it. So here is an effort to fine the parents of the bully. But is it legal to impose fines on parents for not preventing something their kid did when he was at school, supposedly under the control of school officials?
Michigan Lawsuit Shows U.S. Voters May Not Technically Have the Right to Elect Their Mayors - CityLab
Michigan Lawsuit Shows U.S. Voters May Not Technically Have the Right to Elect Their Mayors - CityLab
From the State of Michigan's brief, defending the power of state-appointed emergency managers to take over running a city:
"Here, Plaintiffs are still free to vote in federal and state elections. And they offer no adequate support for the proposition that the right to vote in local elections, once extended, becomes a fundamental right as opposed to simply a right to participate on equal footing. ...Nor do Plaintiffs’ cited cases offer support for a recognized right to participate in local political processes, even where the local unit is a legislative body."
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I've posted about this case before. The State of Michigan says that as long as there are state and federal elections, the right to vote is not impaired--you have no right to vote for local government officials. If the state "extends," i.e, give you out of the goodness of their heart, that right, then it still doesn't include the right to choose the people who make the real decisions.
The implications go beyond Michigan. Extend the principle to other parts of the local government system. County boards, special districts, school boards, and the rest of the alphabet soup of local government entities. Do you have the right to choose the people who make the decisions on those bodies? Or can a governor put them in receivership?
As for HOAs, if the state can take away your power to choose the city council and the mayor, making constitutional rights arguments about HOA elections would seem like a lost cause. So this case is significant. It is in the District Court now, meaning the lowest level of federal court where trials are held. But if it goes up on appeal to the Sixth Circuit, it could become a major case on voting rights and autonomy of cities. The Center for Constitutional Rights is co-counsel, challenging the emergency manager law. You can read up on it there.
From the State of Michigan's brief, defending the power of state-appointed emergency managers to take over running a city:
"Here, Plaintiffs are still free to vote in federal and state elections. And they offer no adequate support for the proposition that the right to vote in local elections, once extended, becomes a fundamental right as opposed to simply a right to participate on equal footing. ...Nor do Plaintiffs’ cited cases offer support for a recognized right to participate in local political processes, even where the local unit is a legislative body."
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I've posted about this case before. The State of Michigan says that as long as there are state and federal elections, the right to vote is not impaired--you have no right to vote for local government officials. If the state "extends," i.e, give you out of the goodness of their heart, that right, then it still doesn't include the right to choose the people who make the real decisions.
The implications go beyond Michigan. Extend the principle to other parts of the local government system. County boards, special districts, school boards, and the rest of the alphabet soup of local government entities. Do you have the right to choose the people who make the decisions on those bodies? Or can a governor put them in receivership?
As for HOAs, if the state can take away your power to choose the city council and the mayor, making constitutional rights arguments about HOA elections would seem like a lost cause. So this case is significant. It is in the District Court now, meaning the lowest level of federal court where trials are held. But if it goes up on appeal to the Sixth Circuit, it could become a major case on voting rights and autonomy of cities. The Center for Constitutional Rights is co-counsel, challenging the emergency manager law. You can read up on it there.
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