Saturday, May 05, 2012

Co-conspirator in Plymouth Hill condo scam pleads guilty - Colonial News - Montgomery News

Co-conspirator in Plymouth Hill condo scam pleads guilty - Colonial News - Montgomery News
Keith Brandolph, a salesperson with Siemens Fire Safety, pleaded guilty to one count of theft by deception and one count of engaging in criminal conspiracy after he admitted to helping the condo association manager swindle hundreds of thousands of dollars from owners within Plymouth Hill condominiums.

Last year, the district attorney initially charged Vincent Lopez, the paid facility manager of the condo complex, and three others with cheating homeowners out of as much as $600,000 through various thinly veiled means of hiking association rates.

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Thanks to Fred Pilot for this link to yet another horrible story of owners victimized by crooked condo industry professionals. Tell me again why the property management industry doesn't need governmental oversight? 

Wednesday, May 02, 2012

Let’s just say it: The Republicans are the problem. - The Washington Post

Let’s just say it: The Republicans are the problem. - The Washington Post
This is from two prominent political scientists. They have a book coming out and this article is something to get the pump primed. I think they have things pretty well figured out.

Lawsuit: HOA Guards Threatened Tenants With Tasers, Stole Naked Pictures Over Foreclosure Miscommunication - The Consumerist

Lawsuit: HOA Guards Threatened Tenants With Tasers, Stole Naked Pictures Over Foreclosure Miscommunication - The Consumerist

Renters of a California condo say they got a rude awakening when a group of guards hired by their homeowners association allegedly used Taser guns to evict them from a house they didn't know had been foreclosed on.
According to the lawsuit filed this week in the Superior Court of California in Sacramento, the guards entered the building without permission around 3 a.m. and began a "military style raid of plaintiffs' residence."
One officer allegedly told the tenants who were present at the time that the building was supposed to be vacant and that everyone in the condo would be charged with burglary and trespassing. The guards said they had been told by the HOA that the people in the building were squatters.
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Thanks to Mystery Reader for this story about an HOA that went all Rambo on some tenants in a foreclosed unit. The article says there was an unlawful detainer action on file to evict them, but the tenants hadn't been served with it so they didn't know about it. Now there is another lawsuit: "The tenants have sued the guards and the HOA, seeking damages for trespass, extortion, assault and battery, false imprisonment, invasion of privacy, conversion and intentional infliction of emotional distress."
Here is the full original story.

14 more criminal cases unsealed in Las Vegas HOA probe - Tuesday, May 1, 2012 | 8:17 p.m. - VEGAS INC

14 more criminal cases unsealed in Las Vegas HOA probe - Tuesday, May 1, 2012 | 8:17 p.m. - VEGAS INC
That makes a total of 25 criminal cases. Eleven defendants have pled guilty to date. Thanks to Fred Pilot for the link.

Monday, April 30, 2012

Maybe no housing rebound for a generation: Shiller - Chicago Tribune

Maybe no housing rebound for a generation: Shiller - Chicago Tribune

"I worry that we might not see a really major turnaround in our lifetimes," Shiller said.
The S&P/Case-Shiller composite index of 20 metropolitan areas gained 0.2 percent in February on a seasonally adjusted basis, the first uptick in prices in 10 months.
But Shiller called it "a very mixed bag." Nine of the 20 cities recorded falling or flat prices on the month.
He said suburban areas in particular might endure further price declines as high gas prices increase demand for "walkable cities."

Sunday, April 29, 2012

Non-Disparagement - Contract Standards

Non-Disparagement - Contract Standards
Here is an explanation of non-disparagement clauses like the one referred to in the article cited below. It seems that they are already being used in CC&Rs. I can see why Warner Brothers and CBS would put one in Charlie Sheen's contract. I can't see why every homeowner in a CID should be silenced. I haven't researched the enforcement of these clauses in that context, and if anybody has a case citation please send it along.

U.S. Homeownership Hits Decade Low

U.S. Homeownership Hits Decade Low
From a high of 73% in 2006-2007, the homeownership rate has dropped to 62% and falling.  And back in 2006, 92% of Americans said their home was worth more than they paid for it. Now only 53% say that, and most of them are wrong.

Saturday, April 28, 2012

Progressive: Small but growing group of vacation rental owners with non-disparagement clauses - chicagotribune.com

Progressive: Small but growing group of vacation rental owners with non-disparagement clauses - chicagotribune.com
"It has come to our attention that you have written an unauthorized review regarding your stay at a home managed by Progressive Management Concepts," it said. "If this review is published by VRBO.com, you will be in violation of the confidentiality clause of the rental contract you agreed to when you made your reservation."

When the Dorows refused to remove the review from VRBO.com, the site through which they'd found the rental, Progressive Management promptly charged $500 to their credit card.

Progressive is among a small but apparently growing group of vacation rental owners and management companies adding non-disparagement clauses to their contracts.

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Thanks to Fred Pilot for this link to another example of our fine print society in action. As Fred says, soon we may be seeing "no disparagement" clauses in HOA and condo CC&Rs. 

Canceled foreclosure sales saddle neighbors, HOAs with expenses - Tampa Bay Times

Canceled foreclosure sales saddle neighbors, HOAs with expenses - Tampa Bay Times

Two doors away, the back yard of an abandoned home overflows with trash; rain pours in open windows; weeds have overgrown the lawn. The pool, filled with black muck, draws swarms of bugs. "I was expecting well-kept yards," Lane said. "I live two doors from a dump. If it goes up in flames and catches our house on fire, who is responsible?" The foreclosure crisis has littered the region with thousands of abandoned homes. The houses sit idle as banks have been slow to seize them in the final stage of the foreclosure process, the public auction...In the last 12 months, lenders have canceled auctions on 4,204 properties in Pinellas and Hillsborough counties. Sales have been canceled two, three, even nine times on some homes. In many cases, banks delay seizures to avoid having to pay maintenance bills or homeowner association fees. Meanwhile, neighbors fend off vandals and thieves and worry about property values falling because of the deteriorating houses.
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Your friends, the banks. They are too big to fail, in case you have forgotten. Thanks to Fred Pilot for this link.

Homeowners’ head slain, wife critical | Tempo - News in a Flash

Homeowners’ head slain, wife critical | Tempo - News in a Flash

CAMP OLIVAS, Pampanga – A president of a homeowners’ association was shot dead while his wife is in critical condition when they were peppered with bullets by an unidentified gunman in Barangay Sto. Tomas, Subic.
Police identified the victim as Jaime Castillo, president of the Magdalena Homes subdivision, Barangay Sto. Tomas, Subic. His wife, Lamonza Victoria, remains in critical condition at an undisclosed hospital due to gunshot wounds in the body.
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In the US, HOA presidents complain when people don't appreciate their hard work. In the Philippines, they get shot. Thanks to Fred Pilot for this multicultural insight.

Friday, April 27, 2012

Financial controls in Dixon were the perfect storm of embezzlement, an expert says - chicagotribune.com

Financial controls in Dixon were the perfect storm of embezzlement, an expert says - chicagotribune.com

Numerous financial safeguards broke down or simply didn't exist in Dixon, experts say, allowing Rita Crundwell, the city's longtime treasurer and comptroller, to allegedly pilfer an astonishing $30 million from the coffers of the small northwestern Illinois town over the last six years...Michael Pagano, dean of the College of Urban Planning and Public Affairs at the University of Illinois at Chicago, said the commission form of government dates to more than a century ago and was meant as a reform measure, making each council member responsible for a particular city function. Only about 50 of the state's approximately 1,300 municipalities still use that form of government, according to a 2006 state report.  The drawback, Pagano said, is that professionals aren't necessarily overseeing critical city functions. Diverting money would be more difficult in a professionally managed city government, he said.
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And you thought your HOA was bad.  The little city of Dixon, IL, is home to a $30 million dollar embezzlement case. Mike Pagano, my UIC colleague, is right. The commission form of government is a strange system.

Downtown residential high-rises prepare for NATO summit - chicagotribune.com

Downtown residential high-rises prepare for NATO summit - chicagotribune.com

In just a few weeks, the North Atlantic Treaty Organization will hold its annual summit in Chicago. It's the first time the group, a political and military alliance of 28 member countries, has gathered in a U.S. city other than Washington.
Many Chicagoans are proud to play host, but others are jittery. Board members and managers of downtown residential high-rises are concerned about the safety and well-being of residents, employees and property.
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Interesting piece by Pamela McKuen about the anxieties in the condo community about the upcoming NATO summit and the anticipated demonstrations. 

Wednesday, April 25, 2012

Scott urged to veto bill requiring homeowners to make neighborhood repairs | StAugustine.com

Scott urged to veto bill requiring homeowners to make neighborhood repairs | StAugustine.com
In recent days, Gov. Rick Scott has received a digital flood of more than 1,000 emails opposing HB 1013, which would codify that homeowners are not entitled to an “implied warranty” for amenities outside their homes — damaged roads, driveways, drainage systems and the like. Many of the emails came from homeowners associations, which have amassed an organized campaign to keep the controversial law off the books. Scott received the bill last week and has one more week to decide whether to sign it.
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This bill would stick CID owners with the bill for repairing and replacing faulty infrastructure bequeathed to them by the developer.  Of course, the reason cities approve and often require HOA housing is to have the developer build the infrastructure. The developer passes that cost on to the owners in the form of a higher purchase price, and the cost of maintaining it falls on the owners as well through their assessments. But what if the developer does a lousy job of building the roads or sewer system? A Florida appeals court in Lakeview Reserve HOA v. Maronda ruled that: 


"The sole issue for our review is whether a homeowners association has a claim for breach of the common law implied warranties of fitness and merchantability, also referred to as a 904warranty of habitability, against a builder/developer for defects in the roadways, drainage systems, retention ponds and underground pipes in a residential subdivision. We hold that it does and, accordingly, reverse."


Now that case is on appeal to the Florida Supreme Court. In the meantime, a helpful Republican legislator, Frank Artiles is flacking for the developers by pushing a bill that would reverse the appellate court via legislation and pre-empt the Supreme Court from affirming. 


If this bill passes, or if the Supreme Court reverses the appellate court, it will mean that owners are on the hook for all the risks associated with their private infrastructure--not just maintenance and the eventual cost of repair and replacement, but also the risk that it wasn't built correctly to begin with.

Monday, April 23, 2012

67-year-old Kingwood Woman Loses Home For Not Paying HOA Dues

67-year-old Kingwood Woman Loses Home For Not Paying HOA Dues

HOUSTON - This four-bedroom, two bathroom house has been Ann Izzat's home for almost 32 years.
Even though it's completely paid off, Ann was evicted. It followed a knock on the door just a couple of days ago.
"I saw my mom go outside," Ann's son Anthony Izzat said. "The next thing I know she came back in and told me we had 30 minutes to get al of our stuff, all thirty two years, and get it out, I went outside and asked for a card, they sat out here and actually laughed and said trust us."
"We had to leave and could not be at home while all the contents could be removed, they took all the contents to storage," Ann Izzat said. "I was shocked I didn't know what was happening."
Ann's HOA took her home because she owed the association a little over $1,200.
"I may have forgotten to pay," Ann said. "I wasn't aware of that problem though, I wasn't aware of it."

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Thanks to Shu Bartholomew for this story--one more among many, but according to the industry this never happens.

Neighbour from hell ordered hundreds of taxis, takeaways and coal to victim's house | Mail Online

Neighbour from hell ordered hundreds of taxis, takeaways and coal to victim's house | Mail Online

A neighbour from hell has been jailed after he spent a decade ordering hundreds of unwanted taxis, takeaways and two tons of coal to the homes of his victims.
Paul Hayward’s campaign of harassment saw him throw mud, food and rubbish into their gardens and plague them with more than 150 silent phone calls.
His former neighbours spoke of their relief as he was sentenced to 14 months in prison after he breached an anti-social behaviour order on 19 occasions.

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And you think your condo association is bad?

Stop-gap home? Polish flat built in an alleyway is just 5ft wide - and won't even have room for stairs when it opens in June | Mail Online

Stop-gap home? Polish flat built in an alleyway is just 5ft wide - and won't even have room for stairs when it opens in June | Mail Online
The potential for condo developers is obvious...

Prime location? The flat is so thin there is no room for stairs - instead, inhabitants will use ladders to get around

Sunday, April 22, 2012

Armored catfish chews up South Florida lakes - South Florida Sun-Sentinel.com

Armored catfish chews up South Florida lakes - South Florida Sun-Sentinel.com
Armored catfish

A pesky burrowing fish that has no natural predator is wreaking havoc in South Florida.
The armored catfish eats away at local lakes, contributing to erosion that can steal more than 10 feet off the water's edge.
Someone even tried spearfishing in a desperate effort to eliminate them, according to one resident of the Royal Lakes community west of Boynton Beach.
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As if the foreclosures weren't enough, it had to be armored catfish.

Flawed analysis props up BC public private partnerships | Canadian Centre for Policy Alternatives

Flawed analysis props up BC public private partnerships | Canadian Centre for Policy Alternatives

"Traditionally, governments borrow money for things like hospitals and bridges. They use that money to pay the private sector to design and build the projects. Once built, the facility or infrastructure is wholly owned, operated and maintained by government on behalf of the public.  In P3 projects, however, the government typically enters into multi decade contracts with private corporations to design, build, finance and operate facilities, whether that be hospitals, toll highways or sewage treatment systems. Rather than financing and operating these facilities, the government effectively leases them from the private partner, paying for the right to use them over the life of the contracts...When private companies finance public projects, they pay higher interest rates on what they borrow and require a high rate of return on what they invest. The higher costs of private financing for P3s are built into the lease rates that taxpayers ultimately pay, and are much higher than the debt service costs that government would pay if it financed the projects itself. For large, expensive public infrastructure, that can add hundreds of millions of dollars to the total expenditures government incurs over the life of the project."[emphasis added]
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And that's what is going on with public-private partnerships in Canada.  So what are we doing here in Chicago?  Mayor Rahm Emanuel is cramming through the City Council a public-private partnership arrangement called the Chicago Infrastructure Trust, expected to pass on Tuesday.  It amounts to a privatization of the funding for infrastructure. Question: why would a city with the ability to sell bonds bother to do this? No city has ever done this.  It makes no sense...unless you are a new Mayor who wants to pad his resume so he can run for higher office as The Man Who Rebuilt Chicago's Infrastructure While Solving the Budget Crisis at the Same Time.  Maybe he figures to be in Springfield or Washington when the people of Chicago are paying the exorbitant bill in the form of charges and user fees.  That's what happened with the privatization of the Chicago Skyway, four municipal parking lots, and the City's parking meters.  The rates went through the roof, but they aren't taxes or user fees paid to the city, they are charges that are paid to, and controlled by, faceless corporations backed by sovereign wealth funds and who-knows-what, so there is nobody to complain to. The decisions are beyond political control, and that's the way things will be with this Infrastructure Trust.