Saturday, June 25, 2011

Indiana's bumpy road to privatization

Though the $1.37-billion project proved disastrous for many of the state's poor, elderly and disabled, it was a financial bonanza for a handful of firms with ties to Daniels and his political allies, which landed state contracts worth millions.

The disparate effects underscore the risks of handing control over public services to the private sector. Whether the approach will ultimately improve services and save money remains a matter of fierce debate in Indiana. But the state's experience shows that without adequate safeguards, privatization can compound the very problems it is designed to correct: bureaucratic burdens, perceptions of influence-peddling and a lack of competition.

It's an issue that is likely to persist, as Republicans in statehouses nationwide turn to private companies as they seek to shrink government and weaken the hold of public-sector unions. 
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While this blog focuses on the problems that come with wholesale privatization of local government in the form of mandatory membership HOAs, apparently there are problems with privatizing discrete government services as well.

Thursday, June 23, 2011

Jerry Brown says Proposition 13 could be tested if budget talks fail

Gov. Jerry Brown hinted Thursday that if the budget talks with Republicans break down, the initiative fight that would follow would not be limited to Brown's plans to raise sales, vehicle and income taxes. He said he expects labor groups to pursue changes to Proposition 13, tweaking the current caps on commercial property taxes, if no bipartisan deal can be reached.
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First the good perfessor (that killjoy McKenzie guy) gets some press accompanying his latest book, Beyond Privatopia: Rethinking Residential Private Government with early media accounts honing in on the book's suggestion that HOAs are unsustainable and could face extinction.

Now comes California Gov. Jerry Brown -- who has predicted a ballot box mother of all initiative wars (Brown prefers the term "war of all against all") -- as the state remains mired in a partisan fiscal standoff and unable to enact a budget for the fiscal year starting July 1. Brown told a gathering of 250 apartment owners and developers today that sacred political cows such as Proposition 13 may be put up for alteration by the electorate in this bellum omnium contra omnes. (The audience is notable given that apartment owners provided much of the support and funding for the successful 1978 initiative).

What does Prop. 13 have to do with HOAs? By sharply limiting property tax increases, the ballot initiative spurred local governments to find creative ways to protect property tax revenue while limiting services. As self financing privatized local governments, HOAs nicely accomplish that objective since the HOA property owners pay property taxes but require fewer services.

In the current economic/political climate, I'm betting voters wouldn't think twice about carving out commercial properties from Prop. 13's provisions limiting ad valorem property tax increases. If Prop. 13 is changed to provide more property tax revenue to California local governments, one of the major drivers of privatized local government in the form of mandatory HOAs could be reduced. And what happens in California (like the property tax revolt of Prop. 13) tends to influence other states.

Homeowners’ Associations Becoming Unavoidable and Quasi-Governmental - Rachel Alexander - Townhall Conservative

Homeowners’ Associations Becoming Unavoidable and Quasi-Governmental - Rachel Alexander - Townhall Conservative
Homeowners’ Associations (“HOAs”) are losing money due to the high numbers of foreclosures and are scrambling to make up for it by assessing additional fees on the remaining homeowners.
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This is what happens when a conservative gets mugged by her HOA. Suddenly all the great virtues of the "private sector" and "freedom of contract" turn into oppression. And it is OK to hate them, because they are really "governmental"! Thanks to Shu for the link.

Neighbors pull plug on injured vet's home | The Augusta Chronicle

Neighbors pull plug on injured vet's home | The Augusta Chronicle
"An Evans neighborhood association has blocked a group that was prepared to build a home free of charge for a local veteran who was injured in Afghanistan. The homebuilding group, Homes for Our Troops, says Knob Hill Property Owners Association approved the home's design June 2 but reversed its decision in a later meeting."
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The stupidity just goes on, and on, and on...

Wednesday, June 22, 2011

Property manager accused of shady business | WJLA.com

Property manager accused of shady business | WJLA.com
Another one of those isolated instances, demonstrating once again that everything is fine in condo/hoa land and there is no need for any pesky governmental interference to protect owners from being taken to the cleaners. Thanks to Rodney Gray for the link.

Tuesday, June 21, 2011

Homeowners Associations: On the Way Out?

Evan McKenzie, a political science professor at the University of Illinois at Chicago, argues in a new book that homeowners associations inherently infringe on people's rights, and that their time is limited.
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What a killjoy this McKenzie guy is.

Macedonia homeowners association tells veteran to remove flagpole, vet fights to keep it

Macedonia homeowners association tells veteran to remove flagpole, vet fights to keep it
Here we go again. This one is from Ohio.

Property Manager Accused of Stealing Condo Association Fees - Freehold, NJ Patch

Property Manager Accused of Stealing Condo Association Fees - Freehold, NJ Patch
Theresa Tierney, 59, of Oakhurst, was indicted Monday for allegedly stealing hundreds of thousands of dollars from Strickland Farms Condominiums in her capacity as property manager, the Monmouth County Prosecutor’s Office said in a press release.
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Another "isolated instance." I think that makes number 5,678. Thanks to Shu Bartholomew for the pointer.

Monday, June 20, 2011

Summerlin North enters HOA Hall of Shame

It all began last year when the original gates put in by the developer bit the dust.

"They were all bent out of shape, they were black, they were chipped and rusty. There was never any complaint from Summerlin North to do something about those ugly gates. They finally closed on a car and trapped somebody in there."

Reeve found the gates would cost less to replace than repair. So his board approved a new gate design and submitted it to master association Summerlin North.

"I contacted Summerlin North and said this situation we have--these are our front gates, not somebody putting a plant in their front yard that you have to approve. I said we have to move on it."

But he says the master didn't move fast enough. And since they couldn't imagine there'd be any problem with the design, they went ahead and installed them.

But soon after the gates went up, Summerlin North told them to take them down.
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An account of the "frictional costs" of forting up in America.  And the private local government bar is laughing all the way to the bank.

Judge orders ISP to release names of Wikipedia posters who slammed Facconable - The Denver Post

Judge orders ISP to release names of Wikipedia posters who slammed Facconable - The Denver Post
This is a federal magistrate, by the way. Anonymous posters need to realize that they can't just defame people online and remain anonymous. The ISP can be hit with a subpoena and ordered to release certain identifying information on Mr. or Ms. Anonymous, such as their IP number. As many readers of this blog know, Google was served with a subpoena like that regarding posts on this blog that said critical things about thin-skinned Texas State Senator John Carona and his "Associa" property management empire.

Friday, June 17, 2011

The perils of 'Privatopia': Taking a second look

The perils of 'Privatopia': Taking a second look

Judge finds Maryland HOA cannot fine rulebreaker

The Orchards’ declaration of covenants does not give the HOA the right to impose fines, so it does not have that power, McGann wrote April 8. Amending its declaration with a bylaw did not give The Orchards the power to impose fines, he stated.

A smaller percentage of homeowners must approve a bylaw than a change to a declaration, giving bylaws less power than declarations and articles, Schild said. To change a declaration, a homeowners association must gather the approval of at least 75 percent of residents, he said, while a bylaw does not need even a majority vote.

“The power to fine is punitive and inherently comes from a state, or a city, or a municipality and it is done originally in the areas of criminal offenses,” he said during a March 29 hearing. “That is where the state has the ability to fine people.”
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A Maryland judge apparently sees police powers reserved for public (constitutional) local government and not Privatopia.

Wednesday, June 15, 2011

Judge rules Righthaven lacks standing to sue, threatens sanctions over misrepresentations - VEGAS INC

Judge rules Righthaven lacks standing to sue, threatens sanctions over misrepresentations - VEGAS INC
"A federal judge in Las Vegas today issued a potentially devastating ruling against copyright enforcer Righthaven LLC, finding it doesn't have standing to sue over Las Vegas Review-Journal stories, that it has misled the court and threatening to impose sanctions against Righthaven."
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Not only that--the judge is allowing the website (Democratic Underground) that was sued by Righthaven to continue its own suit against Stephens Media, LLC, owner of the Las Vegas Review-Journal. And Righthaven has to show cause why it shouldn't be sanctioned for "flagrant misrepresentation to the court."

If you don't know the story, the LVRJ authorized Righthaven to sue bloggers and other web sites that reproduced LVRJ stories from their online edition. This was an unjustified and, I think, ultimately a self-destructive thing to do. And now the judge is dropping the Hammer of Thor on both Righthaven and the company that owns the LVRJ. I think that's what they call "karma."

California to suffer housing shift, UCLA forecasters say

UCLA forecasters have seen the future of California's housing market, and it looks like this: more apartments near the coast, fewer McMansions in the desert.

That prediction is based on several factors, including expectations that rising fuel prices will encourage people to live closer to jobs along the Southland coast and in the San Francisco Bay Area.


The state's population is also skewing younger, meaning there will be more demand for urban rental units and less demand for suburban cul-de-sacs, according to the quarterly economic forecast released Wednesday by UCLA's Anderson School of Business.

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That also means less market demand for inland detached unit PUD-style CIDs. Wither Privatopia?

Tuesday, June 14, 2011

My favorite line from the Republican presidential candidate debate

"I do support a constitutional amendment on marriage between a man and woman, but I would not be going into the states to overturn their state law," said Bachmann.

Read more: http://www.cbsnews.com/8301-503544_162-20070956-503544.html#ixzz1PJcZiX9F

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The entire purpose of the proposed amendment is to invalidate same sex marriage in every single state in the USA. As in: "Marriage in the United States shall consist solely of the union of a man and a woman. Neither this Constitution, nor the constitution of any State, shall be construed to require that marriage or the legal incidents thereof be conferred upon any union other than the union of a man and a woman.

So...huh? Say what? This is better than when she said the Battles of Lexington and Concord happened in New Hampshire.

And today all the papers are full of lemming-like commentary about how great a job she did in the debate, and how smart she sounded, and how cool she looked in that black dress, which was like TOTALLY different than the red ones that Sarah Palin wears.

Is Gold in Fort Knox Real? Ron Paul Wants to Know - CNBC

Is Gold in Fort Knox Real? Ron Paul Wants to Know - CNBC
Giving legitimacy to an Internet conspiracy theory that the gold in Fort Knox is fake, the iconoclast Republican congressman from Texas has asked adminstration officials to audit the purity of the nation's 700,000 gold bars held in Fort Knox, according to an internal Treasury document obtained by CNBC.
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And he is up on a stage with the other Republican Party presidential candidates. All he has to do is rent a copy of Goldfinger and he can see the gold for himself. Along with the fossilized skeleton of Oddjob.

Giordano's strange bankruptcy - chicagotribune.com

Giordano's strange bankruptcy - chicagotribune.com
John Apostolou's businesses owe $45.5 million to Fifth Third Bank, and he has been forced to relinquish control of pizza chain he has owned since 1988. His ties with a sovereign citizens group are complicating court proceedings.
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Giordano's is a popular chain of pizza restaurants in the Chicago area. I was not aware that the owner was connected to the sovereign citizen movement. Things just get stranger all the time, don't they?
Thanks to Mystery Reader for this link.

Did you hear the one about the stolen front lawn?

Did you hear the one about the stolen front lawn?
EDMONTON — Denise Thompson had a beautiful front lawn, thick and green. It was where her four children and two dogs played, and where she drank coffee on sunny mornings.

Then someone stole it. They didn’t even leave a note.

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Scottsdale HOA takes on Steven Seagal

Scottsdale HOA takes on Steven Seagal
Another HOA decides to create physical obstacles to entry. This time, though...they are messing with the star of a whole series of movies that had three things in common: 1) They all had "kill" or "death" in the title; 2) they all included some major league butt-whipping; 3) they all star Steven Seagal.

Thanks to Mystery Reader for this link.

Iceland Crowdsources Its Constitution

Iceland Crowdsources Its Constitution
As it drafts the country’s new governing document, Iceland’s Constitutional Council is turning to social media sites to make the process transparent and to collect input from the public.

The council has made a draft of the document available online and is accepting recommendations for amending it.

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If we Facebooked the Constitution who knows what we would end up with?