Tightening belt, standards through difficult times -- chicagotribune.com: "Many a musician has crooned about hard times—Johnny Cash, Eric Clapton and Ludacris, to name a few. Today, community associations are singing the blues about the many foreclosures in their midst."
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The Chicago Tribune's real estate writer Pam McKuen talks about how associations can "soften the blows" of this foreclosure crisis.
Saturday, March 28, 2009
Time to eliminate a bad sign law: "Roland Cole’s sign experience highlights the problems created by the Grand View Homeowner’s Association prohibition on political yard signs.
Cole, a candidate for Grand Junction City Council and a resident of Grand View, cannot even display support for his own candidacy with a political sign in his yard, at least according to the current interpretation of the Grand View rules.
So Cole has placed a campaign sign in the yard of a friend whose property is just outside the boundaries of the Grand View subdivision. Cole, who told The Daily Sentinel he supports the Grand View rule, said his sign is just a foot over the border from Grand View.
Well, that ought to protect the Grand View residents from the emotional distress of viewing political signs."
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And there is also a state law involved that prohibits sign bans if your dues are over $300 but allows them if you pay less than that. What??? And that law is under attack.
I think a complete ban on political signs is one of the most outrageous things an association can do. Reasonable time, place, and manner restrictions are fine, and cities have those as well. If people don't want lawns festooned with dozens of political signs six months after the election ended, fine. But we are way down the road to authoritarianism when your neighbors can prevent you from announcing your support for a political candidate or cause (even Ron Paul!) as the election nears.
Beware cashing check marked 'payment in full'
Beware cashing check marked 'payment in full': "In some circumstances, without contacting the association, owners simply will remit a payment for a past-due balance with the words 'payment in full' written on the check as their own way of offering a settlement to resolve the account balance.
If the association receives a check from the homeowner that reads 'payment in full,' the association should not cash the check unless it intends for the amount of the check to wipe out the entire balance owed to date. If the check is cashed, it is equivalent to accepting the owner's settlement offer.
The Uniform Commercial Code makes it clear that if a party accepts a payment that is clearly submitted as full satisfaction of the debt, the party has released the debt.
Further, a letter or other document stating that an enclosed check is remitted for payment in full has the same effect as if 'payment in full' were written on the check itself."
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Attorney Curtis Ekmark offers a word of advice that can be equally valuable to associations and delinquent owners alike...
If the association receives a check from the homeowner that reads 'payment in full,' the association should not cash the check unless it intends for the amount of the check to wipe out the entire balance owed to date. If the check is cashed, it is equivalent to accepting the owner's settlement offer.
The Uniform Commercial Code makes it clear that if a party accepts a payment that is clearly submitted as full satisfaction of the debt, the party has released the debt.
Further, a letter or other document stating that an enclosed check is remitted for payment in full has the same effect as if 'payment in full' were written on the check itself."
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Attorney Curtis Ekmark offers a word of advice that can be equally valuable to associations and delinquent owners alike...
Right To Privacy Not Guaranteed By Constitution, Says Supreme Court Justice Peeking In Bathroom Window | The Onion - America's Finest News Source
Right To Privacy Not Guaranteed By Constitution, Says Supreme Court Justice Peeking In Bathroom Window | The Onion - America's Finest News Source: "'After careful consideration, it is this justice's finding that there is no specific mention of the right to privacy in any of the 27 amendments,' Alito whispered, before furtively looking around and then jimmying Daltry's bathroom window ajar with a penknife. 'A rigorous originalist interpretation of the pertinent statutory language has yielded the conclusion that privacy is not now, nor has it ever been, a federally protected liberty.'"
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Thanks to Chris Olson for this enlightening story from The Onion.
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Thanks to Chris Olson for this enlightening story from The Onion.
The vanishing shopping mall - THE WEEK
The vanishing shopping mall - THE WEEK: "Enclosed shopping centers, long the cathedrals of American consumerism, are closing their doors by the hundreds as the recession continues to clobber retail sales. Is America’s love affair with the mall over?"
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I think this is overstated, but I just looked at retail sales tax data for Lake County, IL, where I live. Holy recession, Batman. The decline in revenues to cities is astounding, and the number of businesses that have closed their doors is terrifying. And it will get worse before it gets better. As noted here earlier, there is about to be a foreclosure crisis in commercial real estate. It will be accelerated by Alt-A mortgages resetting their interest rates upward over the next 9 months or so. Alt-A is a bit better than subprime, and a lot of those mortgages are for commercial real estate. If a business is losing money, letting the bank take the building is less painful than losing the house you live in.
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I think this is overstated, but I just looked at retail sales tax data for Lake County, IL, where I live. Holy recession, Batman. The decline in revenues to cities is astounding, and the number of businesses that have closed their doors is terrifying. And it will get worse before it gets better. As noted here earlier, there is about to be a foreclosure crisis in commercial real estate. It will be accelerated by Alt-A mortgages resetting their interest rates upward over the next 9 months or so. Alt-A is a bit better than subprime, and a lot of those mortgages are for commercial real estate. If a business is losing money, letting the bank take the building is less painful than losing the house you live in.
Your Windy City Guide
Your Windy City Guide:City of Chicago imposes trash fee that will sock condo and homeowner associations: "Effective with April 1st your trash hauler will be adding the full payment of the annual permit fee to your association’s bill. For some associations, this fee will come as huge shock and potentially a significant cash flow issue, especially those who use trash-totes for individual units. The minimum fee is $80.00 per trash container up to $780 per trash container.
The ordinance is written in such a way that EACH AND EVERY ONE OF OUR TRASH BINS IS SUBJECT TO THE MINIMUM PERMIT FEE.
Refuse haulers have been lobbying the City to repeal the new fee or at least allow customers to pay the fee over several months rather than 100% up front. Unfortunately, the City has not acted upon these requests.
For Wellington Park Homeowners Association that will fee will be approximately $7,520.00 of new tax due in April. That amount will be due every April 1st until the Ordinance is repealed or changed."
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Yet one more unanticipated cost for associations to deal with. Wait until the emerald ash borer gets fully established and local governments order property owners to pay for cutting down and hauling away all their ash trees. The way I see it, local governments get squeezed financially and the first thing they do is start offloading costs and charging special user fees. Associations are a perfect target for this because, unlike businesses, they can't relocate.
The ordinance is written in such a way that EACH AND EVERY ONE OF OUR TRASH BINS IS SUBJECT TO THE MINIMUM PERMIT FEE.
Refuse haulers have been lobbying the City to repeal the new fee or at least allow customers to pay the fee over several months rather than 100% up front. Unfortunately, the City has not acted upon these requests.
For Wellington Park Homeowners Association that will fee will be approximately $7,520.00 of new tax due in April. That amount will be due every April 1st until the Ordinance is repealed or changed."
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Yet one more unanticipated cost for associations to deal with. Wait until the emerald ash borer gets fully established and local governments order property owners to pay for cutting down and hauling away all their ash trees. The way I see it, local governments get squeezed financially and the first thing they do is start offloading costs and charging special user fees. Associations are a perfect target for this because, unlike businesses, they can't relocate.
Friday, March 27, 2009
I didn't delete people's comments!
Someone posting under the name "Bunny" has been claiming in a Yahoo group that I deleted comments critical of Tom Skiba, who got into it with some folks here. This is simply not true. I didn't delete a single comment. Starting from that completely false premise, Bunny then proceeds to denounce me at length for squelching the critics of the Evil Empire.
This is just complete hogwash. Not only did I not delete anybody's posts, I don't even moderate the comments. Your comments go straight from your computer to the internet for all to see. And if that isn't enough latitude, I even let people post anonymously.
Folks, you can't get more freedom than that unless you start your own blog.
I would like to keep things this way. I hope and trust that people will use all that freedom responsibly. Actually, my main concern with this approach is not real comments from real people, however angry. The biggest problem with open comments is commercial spam from people trying to sell condos in Costa Rica or some such thing. When these people find you they can wreck the comments section in no time.
One final note: I am not part of an evil conspiracy, I don't take orders from a Death Star that lurks behind the moon, and I am just trying to have an informative and entertaining blog that is open to different points of view. Please keep in mind that I was writing about the mistreatment of owners in associations as long ago as 1985. I was called a crackpot for saying that when practically nobody else was. I really don't require any high-handed, self-righteous lectures on the importance of that problem, thank you very much.
Someone posting under the name "Bunny" has been claiming in a Yahoo group that I deleted comments critical of Tom Skiba, who got into it with some folks here. This is simply not true. I didn't delete a single comment. Starting from that completely false premise, Bunny then proceeds to denounce me at length for squelching the critics of the Evil Empire.
This is just complete hogwash. Not only did I not delete anybody's posts, I don't even moderate the comments. Your comments go straight from your computer to the internet for all to see. And if that isn't enough latitude, I even let people post anonymously.
Folks, you can't get more freedom than that unless you start your own blog.
I would like to keep things this way. I hope and trust that people will use all that freedom responsibly. Actually, my main concern with this approach is not real comments from real people, however angry. The biggest problem with open comments is commercial spam from people trying to sell condos in Costa Rica or some such thing. When these people find you they can wreck the comments section in no time.
One final note: I am not part of an evil conspiracy, I don't take orders from a Death Star that lurks behind the moon, and I am just trying to have an informative and entertaining blog that is open to different points of view. Please keep in mind that I was writing about the mistreatment of owners in associations as long ago as 1985. I was called a crackpot for saying that when practically nobody else was. I really don't require any high-handed, self-righteous lectures on the importance of that problem, thank you very much.
California Home Prices Decline 41% on Foreclosures (Update1) - Bloomberg.com: "California home prices dropped 41 percent last month from a year earlier, more than double the U.S. decline, as surging foreclosures drove down values, the state Association of Realtors said today.
The median price for an existing, single-family detached home in California sank to $247,590 in February from $418,260 a year earlier, the Los Angeles-based group said in a statement...The median condominium price in California was $219,960 in February, down 40 percent from $367,540 a year earlier, the Realtors’ report said. The number of condo sales rose 52 percent from a year earlier. "
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Wow. You read about "existing home sales are up, whoopee!", but of course the reason is banks are dumping their REO units at fire sale prices.
The median price for an existing, single-family detached home in California sank to $247,590 in February from $418,260 a year earlier, the Los Angeles-based group said in a statement...The median condominium price in California was $219,960 in February, down 40 percent from $367,540 a year earlier, the Realtors’ report said. The number of condo sales rose 52 percent from a year earlier. "
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Wow. You read about "existing home sales are up, whoopee!", but of course the reason is banks are dumping their REO units at fire sale prices.
Assembly panel weighs bill limiting power of HOAs - Las Vegas Sun: "Chief among the bills was Assembly Bill 350, which sponsor Assemblyman Harvey Munford, D-Las Vegas, said would require homeowners associations to be more open and responsive to their homeowner constituents.
“The homeowners bill of rights,” as Munford called it, would help a growing number of Nevadans as homeowners associations become more common, he said.
“Particularly in Southern Nevada, it is nearly impossible to purchase a relatively new home that is not part of a homeowners association,” he said.
The bill would require any change to an association’s governing documents to be approved by 85 percent of residents, lower the cap on interest that associations can charge on past-due assessments from 18 percent to 5 percent — and 3 percent for special assessments — and forbid associations from foreclosing on homes with unpaid assessment liens.
It would also place limits of two, two-year terms on board members in communities with more than 50 residences, require associations to provide free copies of minutes and association documents to homeowners upon request and allow any homeowner to speak on any item on a board meeting agenda for at least five minutes."
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Note the rhetorical connection Munford makes between the lack of choice and the need for regulation. That is a powerful argument. You can't argue that people "chose" something if they didn't have a choice.
There is a comment on the article that cracked me up: "I think the easiest thing to do is require HOA officers to wear exploding collars that all the residents have remotes for. Then the rest of these proposals would be moot."
“The homeowners bill of rights,” as Munford called it, would help a growing number of Nevadans as homeowners associations become more common, he said.
“Particularly in Southern Nevada, it is nearly impossible to purchase a relatively new home that is not part of a homeowners association,” he said.
The bill would require any change to an association’s governing documents to be approved by 85 percent of residents, lower the cap on interest that associations can charge on past-due assessments from 18 percent to 5 percent — and 3 percent for special assessments — and forbid associations from foreclosing on homes with unpaid assessment liens.
It would also place limits of two, two-year terms on board members in communities with more than 50 residences, require associations to provide free copies of minutes and association documents to homeowners upon request and allow any homeowner to speak on any item on a board meeting agenda for at least five minutes."
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Note the rhetorical connection Munford makes between the lack of choice and the need for regulation. That is a powerful argument. You can't argue that people "chose" something if they didn't have a choice.
There is a comment on the article that cracked me up: "I think the easiest thing to do is require HOA officers to wear exploding collars that all the residents have remotes for. Then the rest of these proposals would be moot."
Drowning lawsuit: Family of boy who died sues Hazel Crest condo association -- chicagotribune.com
Drowning lawsuit: Family of boy who died sues Hazel Crest condo association -- chicagotribune.com: "The family of a boy who drowned in a pool at a Hazel Crest condominium filed a wrongful death suit Wednesday in Cook County Circuit Court. The drowning of Jamar Garrett, 12, took place at Stonebridge Condominium Association last summer. The suit alleged a hole in the fence allowed access to a pool so murky that the deep and shallow ends were difficult to distinguish, the suit said."
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At last night's law school class I spent the whole session talking about things like this. Associations are becoming targets of opportunity for litigation. I'm not even counting the cases the associations file. I mean when they get sued for tort, breach of contract, discrimination, etc. Most of them have liability insurance and if that fails the assessment stream can be used to satisfy a judgment.
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At last night's law school class I spent the whole session talking about things like this. Associations are becoming targets of opportunity for litigation. I'm not even counting the cases the associations file. I mean when they get sued for tort, breach of contract, discrimination, etc. Most of them have liability insurance and if that fails the assessment stream can be used to satisfy a judgment.
Soros Says Commercial Property Values Will Fall 30% (Update1) - Bloomberg.com
Soros Says Commercial Property Values Will Fall 30% (Update1) - Bloomberg.com: "Billionaire investor George Soros said U.S. commercial real estate will probably drop at least 30 percent in value, causing further strains on banks.
“Commercial real estate has not yet fallen in value,” Soros, speaking at a forum in Washington, said. “It is inevitable, it is written, everybody knows it, there are already some transactions which reflect and anticipate it, so we know, they will drop at least 30 percent.”"
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I have heard this prediction from a number of people, and it was on the front page of the Wall Street Journal yesterday.
“Commercial real estate has not yet fallen in value,” Soros, speaking at a forum in Washington, said. “It is inevitable, it is written, everybody knows it, there are already some transactions which reflect and anticipate it, so we know, they will drop at least 30 percent.”"
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I have heard this prediction from a number of people, and it was on the front page of the Wall Street Journal yesterday.
20 Most Bizarre Houses around the world - Oddee.com (strange houses, weird houses)
20 Most Bizarre Houses around the world - Oddee.com (strange houses, weird houses)
And none of them is in an HOA, I'll wager.
And none of them is in an HOA, I'll wager.
Thursday, March 26, 2009
North Naples woman accused of stealing $100,000 from condo association : Crime : Naples Daily News
North Naples woman accused of stealing $100,000 from condo association : Crime : Naples Daily News: "A North Naples woman was arrested Wednesday, after she stole nearly $100,000 from Southwest Florida home and condominium associations while she was managing their accounts.
According to investigators with the Collier County Sheriff’s Office’s Economic Crimes Unit, Amy M. Copeland, 39, stole $95,330.46 while she was employed as an account manager for Integrated Property Management, 3435 10th St. N., Suite 201, Naples. The company, also known as IPM, manages approximately 130 home and condo association accounts, investigators said."
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Yet another property management embezzlement charge. It comes on the heels of our heated debate over the NV and FL proposals to crack down hard on such practices. Thanks to Shu Bartholomew for the link.
According to investigators with the Collier County Sheriff’s Office’s Economic Crimes Unit, Amy M. Copeland, 39, stole $95,330.46 while she was employed as an account manager for Integrated Property Management, 3435 10th St. N., Suite 201, Naples. The company, also known as IPM, manages approximately 130 home and condo association accounts, investigators said."
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Yet another property management embezzlement charge. It comes on the heels of our heated debate over the NV and FL proposals to crack down hard on such practices. Thanks to Shu Bartholomew for the link.
BobKrumm.com » Geithner agrees to new currency
BobKrumm.com » Geithner agrees to new currency
I have to admit, that is some nice looking currency.
I have to admit, that is some nice looking currency.
More Cities Target Teens With Daytime Curfews - WSJ.com
More Cities Target Teens With Daytime Curfews - WSJ.com: "In Dallas, the city council will vote next month on extending an existing nighttime curfew for minors to make it broadly illegal for minors under 17 years old to appear in public without adult supervision during school hours. Violators would be subject to a fine up to $500. Parents and businesses that let minors congregate on their premises during school hours also would be subject to a fine up to $500.
Elba Garcia, a dentist who serves as chairman of the council's public-safety committee, said the ban will help the police combat crimes that are 'associated with truancy,' especially daylight burglaries and car break-ins."
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I thought that was already illegal most places.
Elba Garcia, a dentist who serves as chairman of the council's public-safety committee, said the ban will help the police combat crimes that are 'associated with truancy,' especially daylight burglaries and car break-ins."
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I thought that was already illegal most places.
The Associated Press: Senate reviewing how college football picks No. 1
The Associated Press: Senate reviewing how college football picks No. 1: "Obama and some members of Congress favor a playoff-type system to determine the national champion. The BCS features a championship game between the two top teams in the BCS standings, based on two polls and six computer ratings.
Behind the push for the hearings is the subcommittee's top Republican, Sen. Orrin Hatch of Utah. People there were furious that Utah was bypassed for the national championship despite going undefeated in the regular season."
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I am (almost) speechless. This isn't a public policy issue. Period. But even if it were, isn't it blindingly obvious that this is not the time for the Senate to even think about it, much less waste time on publicity-grabbing hearings?
Orrin Hatch is pushing this because Utah didn't get to play for the national championship. Well, boo hoo hoo. Neither did USC, and they would have stomped a mudhole in Utah, Florida, or Oklahoma.
This is unbelievable. Absolutely unbelievable. Is there anybody left in Washington with any respect for the principle that there are limits to the powers of the national government?
Behind the push for the hearings is the subcommittee's top Republican, Sen. Orrin Hatch of Utah. People there were furious that Utah was bypassed for the national championship despite going undefeated in the regular season."
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I am (almost) speechless. This isn't a public policy issue. Period. But even if it were, isn't it blindingly obvious that this is not the time for the Senate to even think about it, much less waste time on publicity-grabbing hearings?
Orrin Hatch is pushing this because Utah didn't get to play for the national championship. Well, boo hoo hoo. Neither did USC, and they would have stomped a mudhole in Utah, Florida, or Oklahoma.
This is unbelievable. Absolutely unbelievable. Is there anybody left in Washington with any respect for the principle that there are limits to the powers of the national government?
Survivor of Both A-Bombs Is Certified - NYTimes.com
Survivor of Both A-Bombs Is Certified - NYTimes.com: "The survivor, Tsutomu Yamaguchi, had already been a certified hibakusha, or radiation survivor, of the bombing on Aug. 9, 1945, in Nagasaki, but he has now been confirmed as surviving the attack on Hiroshima three days earlier, in which he suffered serious burns to his upper body."
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Here is the ultimate survivor. But on the other hand, you could call him the person with the worst luck. He survives Hiroshima, then heads for home...in Nagasaki.
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Here is the ultimate survivor. But on the other hand, you could call him the person with the worst luck. He survives Hiroshima, then heads for home...in Nagasaki.
Wednesday, March 25, 2009
Elk Grove Ponders Stinky Fix For Unpaid Bills - Money News Story - KCRA Sacramento
Elk Grove Ponders Stinky Fix For Unpaid Bills - Money News Story - KCRA Sacramento: "ELK GROVE, Calif. -- City staffers in Elk Grove are working on a proposal to stop picking up trash and recyclables from residential customers who are severely behind in their utility bill payments.
The city said over the past year, the proportion of utility customers who are at least four months delinquent has grown from 4 percent to nearly 10 percent. Currently, the city sends out warnings to those customers, then adds a lien on their property and eventually includes the charge on the homeowner's yearly property tax bill.
However, city finance director Rebecca Craig said the current process can take 18 months and that the total amount of unpaid bills has grown to $1 million."
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Drastic solution. I take it this will lead to peer pressure from the neighbors.
Fred Pilot contributed this slice of life.
The city said over the past year, the proportion of utility customers who are at least four months delinquent has grown from 4 percent to nearly 10 percent. Currently, the city sends out warnings to those customers, then adds a lien on their property and eventually includes the charge on the homeowner's yearly property tax bill.
However, city finance director Rebecca Craig said the current process can take 18 months and that the total amount of unpaid bills has grown to $1 million."
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Drastic solution. I take it this will lead to peer pressure from the neighbors.
Fred Pilot contributed this slice of life.
DailyTech - Users Flood the Internet With Web Rage: "People, in increasing numbers, are headed to the internet to vent their rage, signs indicate. Road rage has been replaced by web rage -- a new form of public antipathy for the twenty-first century. While this is evident in the descent into name-calling and petty aspersions on many a site, it is also evidenced by the rise of sites specially dedicated to users expressing their anger at the world."
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Yes, such as in the comments section here every time Tom Skiba takes a position on anything--and this time, I asked what CAI had to say about a bill in NV, and Tom replied, and suddenly it was time for some WEB RAGE from anonymous posters.
I have an idea. How about registering, so you have a name, and then let's have a civil conversation, complete with disagreements and controversy, but without personal attacks?
I have always welcomed Tom's posts and will continue to do so. He and I have debated these issues in public and although we don't always agree, we listen to each other and think about the other person's views. That's how you grow.
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