AZ looking at special taxing districts for certain HOAs � HOA Constitutional Government
From George Starapoli's blog--he calls our attention to a bill that would prohibit land use approval bodies from mandating the creation HOAs, unless certain improvements are involved in the subdivision (such as a golf course, a lake, etc.). The alternative is to create a special improvement district.
Saturday, January 26, 2013
Illinois bond rating sinks to worst in the nation - Chicago Sun-Times
Illinois bond rating sinks to worst in the nation - Chicago Sun-Times:
"Citing inaction on pensions, a prominent Wall Street bond-rating agency downgraded Illinois’ bond rating Friday, making the state the nation’s worst credit risk."
--------------
I love this use of the word "inaction." What inaction? Standard & Poors and the rest of the financial elite think the state legislature should have violated the state constitution by cutting state employee pensions. But the real inaction occurred over the last 40 years or so. State employees (like me) put 8% of their gross pay into the pension fund. It gets taken right off the top before we get our paychecks. The state is supposed to contribute 9.6%, but for the last four decades the state legislature has consistently and intentionally refused to do that, even though it is in fact a modest contribution when compared with other pension plans. But, in any event, it is the deal they made, and they make us comply with it while refusing to pay their share. Instead, the state has in essence been borrowing from the state employees pension fund to pay its bills, giving itself one "pension holiday" after another.
We, the employees, have lost not only the principal of those contributions, but all the investment income we would have realized during that time when the stock market was booming. Now the pension fund is seriously underfunded. It is a defined benefit plan, meaning that ultimately the state owes us a certain benefit payment, so the state might someday find itself having to dig very deep to pay us, which would wreak havoc with the rest of the state budget.
So, what is the solution to this problem? New employees are already getting a reduced pension plan, which is fine because that's what they agreed to when they were hired. But what about currently retired people, and those of us who were hired long ago and haven't retired? We are the target. According to the investment class and their party, the Republicans, and their newspaper, the Chicago Tribune, the way forward is for the state legislature to cut our pension benefits. There are several ideas, but all of them come down to cutting the payments that are mandated by the contract. It is an indication of just how morally bankrupt the financial sector has become that the shocking injustice of such a proposal is utterly irrelevant to them. Moreover, it is unconstitutional. The Illinois constitution provides as follows, at Article 13, Section 5:
"SECTION 5. PENSION AND RETIREMENT RIGHTS
Membership in any pension or retirement system of the
State, any unit of local government or school district, or
any agency or instrumentality thereof, shall be an
enforceable contractual relationship, the benefits of which
shall not be diminished or impaired."
Any literate human can see that this provision precludes the elite-sponsored effort to cut our pensions in order to solve the problem the state created by welching on its obligations to us for the last four decades. But, having ignored the immorality of their position, ignoring its illegality is child's play. The advocates of "pension reform," as they call it ("pension theft" would be the accurate term) think they should pass the law and let public employee unions challenge it in court, where the advocates think maybe the Illinois Supreme Court can be persuaded to ignore the state constitution and go along with it. Basically, it is the legally and morally vapid argument of a hostage taker: the state legislature has created a financial crisis that threatens to wreck the state financially, and the only way out, they say, is to screw the employees--the only party to the contract that has always honored it. The state wants to cheat the employees out of billions of dollars, on the grounds that they have been cheating us for so long that now there is no other course open except to cheat us again. The "inaction" of the previous legislative session means only that the issue is carried forward.
As for the rating agencies, where were they all these years when the state was setting up this situation by underfunding the pension funds? Where was the ratings downgrade thirty years ago in response to "pension holidays," when forcing the state legislature to act responsibly would have prevented the current crisis? Oh, wait, I remember. S&P and the others were enthusiastically giving AAA ratings to residential mortgage backed securities that eventually cratered and wrecked the world's economy, contributing further to the budget crisis that faces states like Illinois.
"Citing inaction on pensions, a prominent Wall Street bond-rating agency downgraded Illinois’ bond rating Friday, making the state the nation’s worst credit risk."
--------------
I love this use of the word "inaction." What inaction? Standard & Poors and the rest of the financial elite think the state legislature should have violated the state constitution by cutting state employee pensions. But the real inaction occurred over the last 40 years or so. State employees (like me) put 8% of their gross pay into the pension fund. It gets taken right off the top before we get our paychecks. The state is supposed to contribute 9.6%, but for the last four decades the state legislature has consistently and intentionally refused to do that, even though it is in fact a modest contribution when compared with other pension plans. But, in any event, it is the deal they made, and they make us comply with it while refusing to pay their share. Instead, the state has in essence been borrowing from the state employees pension fund to pay its bills, giving itself one "pension holiday" after another.
We, the employees, have lost not only the principal of those contributions, but all the investment income we would have realized during that time when the stock market was booming. Now the pension fund is seriously underfunded. It is a defined benefit plan, meaning that ultimately the state owes us a certain benefit payment, so the state might someday find itself having to dig very deep to pay us, which would wreak havoc with the rest of the state budget.
So, what is the solution to this problem? New employees are already getting a reduced pension plan, which is fine because that's what they agreed to when they were hired. But what about currently retired people, and those of us who were hired long ago and haven't retired? We are the target. According to the investment class and their party, the Republicans, and their newspaper, the Chicago Tribune, the way forward is for the state legislature to cut our pension benefits. There are several ideas, but all of them come down to cutting the payments that are mandated by the contract. It is an indication of just how morally bankrupt the financial sector has become that the shocking injustice of such a proposal is utterly irrelevant to them. Moreover, it is unconstitutional. The Illinois constitution provides as follows, at Article 13, Section 5:
"SECTION 5. PENSION AND RETIREMENT RIGHTS
Membership in any pension or retirement system of the
State, any unit of local government or school district, or
any agency or instrumentality thereof, shall be an
enforceable contractual relationship, the benefits of which
shall not be diminished or impaired."
Any literate human can see that this provision precludes the elite-sponsored effort to cut our pensions in order to solve the problem the state created by welching on its obligations to us for the last four decades. But, having ignored the immorality of their position, ignoring its illegality is child's play. The advocates of "pension reform," as they call it ("pension theft" would be the accurate term) think they should pass the law and let public employee unions challenge it in court, where the advocates think maybe the Illinois Supreme Court can be persuaded to ignore the state constitution and go along with it. Basically, it is the legally and morally vapid argument of a hostage taker: the state legislature has created a financial crisis that threatens to wreck the state financially, and the only way out, they say, is to screw the employees--the only party to the contract that has always honored it. The state wants to cheat the employees out of billions of dollars, on the grounds that they have been cheating us for so long that now there is no other course open except to cheat us again. The "inaction" of the previous legislative session means only that the issue is carried forward.
As for the rating agencies, where were they all these years when the state was setting up this situation by underfunding the pension funds? Where was the ratings downgrade thirty years ago in response to "pension holidays," when forcing the state legislature to act responsibly would have prevented the current crisis? Oh, wait, I remember. S&P and the others were enthusiastically giving AAA ratings to residential mortgage backed securities that eventually cratered and wrecked the world's economy, contributing further to the budget crisis that faces states like Illinois.
Thursday, January 24, 2013
Backboard seizures put residents on defense | county, hoops, public - News - The Orange County Register
Backboard seizures put residents on defense | county, hoops, public - News - The Orange County Register: In early January, the county responded to complaints in the Wagon Wheel and Las Flores HOA communities, according to Jessica O'Hare with Public Works. They found eight hoops on county right of way and issued notices, with one hoop targeted for impound soon.
However, O'Hare said most of the county's backboard complaints come from Ladera Ranch, leading to sweeps there about once a year.
"Portable basketball backboards have always been an issue in Ladera Ranch," said Jett McCormick, chairman of the Ladera Ranch Civic Council.
The community's HOA rules prohibit backboards from being left on the street when not in use, McCormick said. But the association doesn't have jurisdiction over public streets, leaving enforcement to the county.
-------------
Apparently jurisdictional matters aren't an issue in Arizona, where George Staropoli has reported on state legislation barring HOAs from asserting parking jurisdiction over public rights of way. Which strikes me as nonsensical since Privatopia by definition is a creature of private and not public jurisdiction.
However, O'Hare said most of the county's backboard complaints come from Ladera Ranch, leading to sweeps there about once a year.
"Portable basketball backboards have always been an issue in Ladera Ranch," said Jett McCormick, chairman of the Ladera Ranch Civic Council.
The community's HOA rules prohibit backboards from being left on the street when not in use, McCormick said. But the association doesn't have jurisdiction over public streets, leaving enforcement to the county.
-------------
Apparently jurisdictional matters aren't an issue in Arizona, where George Staropoli has reported on state legislation barring HOAs from asserting parking jurisdiction over public rights of way. Which strikes me as nonsensical since Privatopia by definition is a creature of private and not public jurisdiction.
Wednesday, January 23, 2013
‘Nuclear Holocaust’ & ‘Sh!tBag’ Among Clever Names Morgan Stanley Bankers Gave To Toxic Mortgage-Backed Security – The Consumerist
‘Nuclear Holocaust’ & ‘Sh!tBag’ Among Clever Names Morgan Stanley Bankers Gave To Toxic Mortgage-Backed Security – The Consumerist
And they aren't even going to prison. Thanks to Mystery Reader for this link.
And they aren't even going to prison. Thanks to Mystery Reader for this link.
In Carrboro, working-class condo owners must pay $5,400 fee—in three weeks | Orange County | Indy Week
In Carrboro, working-class condo owners must pay $5,400 fee—in three weeks | Orange County | Indy Week: The fees are intended to generate nearly $1.8 million in funds to repair the long-crumbling apartment complex. Many tenants say previous ownership, which sold the property last summer, neglected to maintain it, leaving behind shabby apartments and dangerous walkways.
A 10-year-old boy tumbled through a deteriorated stairway at the complex on Nov. 24, three days after Collins Crossing owners notified condo owners of their plan to impose assessment fees.
Carrboro officials gave owners 90 days to make repairs. In the meantime, condo owners have to find the cash within three weeks. It's unclear what penalty tenants will face if they don't pay, although Carrboro Mayor Mark Chilton says management could impose a lien on the condos. Some residents fear foreclosure.
---------------
Looks like this condo complex has fallen into Tyler Berding's Phase 3 death spiral to the point it resembles an apartment complex with a landlord more than a condo HOA.
A 10-year-old boy tumbled through a deteriorated stairway at the complex on Nov. 24, three days after Collins Crossing owners notified condo owners of their plan to impose assessment fees.
Carrboro officials gave owners 90 days to make repairs. In the meantime, condo owners have to find the cash within three weeks. It's unclear what penalty tenants will face if they don't pay, although Carrboro Mayor Mark Chilton says management could impose a lien on the condos. Some residents fear foreclosure.
---------------
Looks like this condo complex has fallen into Tyler Berding's Phase 3 death spiral to the point it resembles an apartment complex with a landlord more than a condo HOA.
Tuesday, January 22, 2013
Would you want to live on a housing estate like this? New Chinese 'villas' look more like concrete slums | Mail Online
Would you want to live on a housing estate like this? New Chinese 'villas' look more like concrete slums | Mail Online
Well...no. But it is the logical extension of some of the more unfortunate trends in real estate development that we can see close to home.
Well...no. But it is the logical extension of some of the more unfortunate trends in real estate development that we can see close to home.
Saturday, January 19, 2013
Pruning Shears: Utopian colonies and the deep roots of the Occupy Movement
Today's CID housing is frequently marketed to tap into people's yearning for a strong sense of community. What is usually missing from the product they deliver, however, is a common sense of values. But from the late 19th century through the early 20th, many people set up their own utopian communities, some religious and some socialistic. This blog post points out that some of these socialistic communities were similar in a number of ways to the Occupy movement. It is in part a reaction to a book concerning authoritarian tendencies on the left. But the larger issue is how to structure rights, control, and privacy in common living arrangements. Today's CID activists tend to be focused on how abusive current forms of CID government are, and some of them offer state law reforms to protect owners, while others demand abolition. But the greater challenge is how to structure CIDs so that they offer residents a richer social life than they would have living in an apartment or detached single family home in the stereotypical faceless suburb. Is such a goal realistic, or just a fantasy?
------------------------
"What is really fascinating (and surprisingly relevant) is Ellis’ coverage of utiopian communities that began to form in the late nineteenth century. Inspired in part by proto-science fiction like Edward Bellamy’s Looking Backward, these communities withdrew from the larger society in an effort to construct the one they envisioned. While the only separatist type impulses these days seem to be on the right, their governance had striking similarities to Occupy - including its weaknesses....The near-unanimous vote of the general assembly resembles the consensus model used by Occupy. As our group noted last year, a consensus model eventually works to the advantage of those with the most time. Getting 90% approval might represent the overwhelming view of the majority, but it might also might represent 90% of the handful left after an extended and frustrating filibuster."
Thursday, January 17, 2013
TV Guide - Today's News: Our Take - Holly Madison Leaves Home After Dispute Over Giant Dog House - DeRidder, LA - Beauregard Daily News - Beauregard, LA
TV Guide - Today's News: Our Take - Holly Madison Leaves Home After Dispute Over Giant Dog House - DeRidder, LA - Beauregard Daily News - Beauregard, LA: Holly Madison's relationship with her homeowners association has really gone to the dogs.
The former Girls Next Door star is selling her home in Southern Highlands, Las Vegas, because of an ongoing dispute with the association over a giant pink dog house she built in her backyard, according to Las Vegas Weekly.
The former Girls Next Door star is selling her home in Southern Highlands, Las Vegas, because of an ongoing dispute with the association over a giant pink dog house she built in her backyard, according to Las Vegas Weekly.
Tuesday, January 15, 2013
High court rules a house is a house, even if it floats | Nation & World | The Seattle Times
High court rules a house is a house, even if it floats | Nation & World | The Seattle Times: Lawyers for the Seattle Floating Homes Association and a similar association in Sausalito, Calif., praised the Supreme Court ruling.
The San Francisco law firm Munger, Tolles and Olson filed a friend of court brief on behalf of the two floating-homes associations, arguing that they should be regulated as houses and not under maritime law as vessels.
The San Francisco law firm Munger, Tolles and Olson filed a friend of court brief on behalf of the two floating-homes associations, arguing that they should be regulated as houses and not under maritime law as vessels.
Developer pitches $1B commonwealth for Belle Isle | The Detroit News | detroitnews.com
Developer pitches $1B commonwealth for Belle Isle | The Detroit News | detroitnews.com:
Detroit — As the broken city thinks big and radically about its future, a developer is stepping forward with a revolutionary idea: Sell the city's Belle Isle park for $1 billion to private investors who will transform it into a free-market utopia. The 982-acre island would then be developed into a U.S. commonwealth or city-state of 35,000 people with its own laws, customs and currency.
--------------
Here we go again. Another libertarian utopia, to go with Paulville, TX, those proposed oil platform communities out at sea, Glenn Beck's planned utopia, The World (ocean liner), and a bunch of others. Can't we just give them Wyoming or something?
Detroit — As the broken city thinks big and radically about its future, a developer is stepping forward with a revolutionary idea: Sell the city's Belle Isle park for $1 billion to private investors who will transform it into a free-market utopia. The 982-acre island would then be developed into a U.S. commonwealth or city-state of 35,000 people with its own laws, customs and currency.
--------------
Here we go again. Another libertarian utopia, to go with Paulville, TX, those proposed oil platform communities out at sea, Glenn Beck's planned utopia, The World (ocean liner), and a bunch of others. Can't we just give them Wyoming or something?
Central figure, conspirators in HOA scheme indicted by federal grand jury - News - ReviewJournal.com
Central figure, conspirators in HOA scheme indicted by federal grand jury - News - ReviewJournal.com: "Leon Benzer, the former construction company boss at the center of a long-running investigation into fraud and corruption at homeowners associations, and 10 other defendants were indicted Tuesday by a federal grand jury. The long-awaited indictment is part of the final Justice Department push to charge conspirators in a massive scheme to take over homeowners associations across the Las Vegas Valley between 2003 and 2009."
---------
There have been 28 guilty pleas so far. Now we have 11 more indictments. Nevada is one of only a handful of states that has an ombudsperson and/or a government agency with special responsibilities regarding common interest housing. But nonetheless, the most massive HOA/condo association fraud ever uncovered happened right under their noses. What do we conclude from that? How about: this is what privatization without accountability looks like. This is what happens when state and local governments hand over major responsibilities--including the power to tax, run elections, enforce rules, and make major decisions that affect people's lives--to unpaid, untrained volunteers who have to meet no minimum qualifications and who have no meaningful oversight. There have been other frauds and embezzlements across the nation. There will be more to come. Will our public policy makers adopt common sense reforms to protect people?
---------
There have been 28 guilty pleas so far. Now we have 11 more indictments. Nevada is one of only a handful of states that has an ombudsperson and/or a government agency with special responsibilities regarding common interest housing. But nonetheless, the most massive HOA/condo association fraud ever uncovered happened right under their noses. What do we conclude from that? How about: this is what privatization without accountability looks like. This is what happens when state and local governments hand over major responsibilities--including the power to tax, run elections, enforce rules, and make major decisions that affect people's lives--to unpaid, untrained volunteers who have to meet no minimum qualifications and who have no meaningful oversight. There have been other frauds and embezzlements across the nation. There will be more to come. Will our public policy makers adopt common sense reforms to protect people?
HOA President Threatens To Sue Newspaper For Using Neighborhood’s Name In Article – The Consumerist
HOA President Threatens To Sue Newspaper For Using Neighborhood’s Name In Article – The Consumerist
Followup to the story below from an Indiana newspaper that went into detail about problems with HOA governance, and included by name Stonecreek Arbors, in Vandenburgh County, Indiana. The Consumerist is reporting that the president of the Stonecreek HOA sent the following to the newspaper, after being interviewed, proving once again (as if any additional proof were needed, after all these years) that many HOA leaders need to get a clearer understanding of the limits on their powers.
Followup to the story below from an Indiana newspaper that went into detail about problems with HOA governance, and included by name Stonecreek Arbors, in Vandenburgh County, Indiana. The Consumerist is reporting that the president of the Stonecreek HOA sent the following to the newspaper, after being interviewed, proving once again (as if any additional proof were needed, after all these years) that many HOA leaders need to get a clearer understanding of the limits on their powers.
“[T]his notice also requires you not to at any measure mention anything regarding my name, any resident of Stonecreek, NOR will we ALLOW any of your printing in any article regarding Stonecreek at any time in any publication… You will be held liable for any violations of this letter and notice/request in this email. If we find/discover you have mentioned Stonecreek in any legal matter their (sic) will be action toward yourself as well as any print paper you represent in the media article.
“You may contact any HOA in the County of Vanderburgh, the State of Indiana, but Stonecreek will not PERMIT OR ALLOW YOU our legal name in any future article.”
Sunday, January 13, 2013
Independence Park to be Glenn Beck's 'Galt's Gulch' | Right Wing Watch
Independence Park to be Glenn Beck's 'Galt's Gulch' | Right Wing Watch
"On his program last night, Beck revealed that his intention to "go Galt" is quite literal, unveiling grandiose plans to create an entirely self-sustaining community called Independence Park that will provide its own food and energy, produce television and film content, host research and development, serve as a marketplace for products and ideas, while also housing a theme park and serving as a residential community.
"On his program last night, Beck revealed that his intention to "go Galt" is quite literal, unveiling grandiose plans to create an entirely self-sustaining community called Independence Park that will provide its own food and energy, produce television and film content, host research and development, serve as a marketplace for products and ideas, while also housing a theme park and serving as a residential community.
At the center - in the middle of the lake that is itself larger than all of Disney Land - Beck (with the help of David Barton) will create a massive "national archive"/learning center where people can send their children to be "deprogrammed" and elected officials can come to learn "the truth."
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To which I can only say, "Don't let the door hit you where the dog should have bit you."
Woman says HOA demanded microchip in her dog � Evansville Courier & Press
Woman says HOA demanded microchip in her dog � Evansville Courier & Press
With a bunch of quotes from me, which you can read if you scroll down. Sample:
"If you're going to buy a house, you ought to know well in advance of even making an offer on the house not only that there is an association, but what the rules are and what the finances of the association are," he said.
and:
With a bunch of quotes from me, which you can read if you scroll down. Sample:
"If you're going to buy a house, you ought to know well in advance of even making an offer on the house not only that there is an association, but what the rules are and what the finances of the association are," he said.
and:
Homeowners might spare themselves the grief of being under the thumb of domineering, combative HOA officials, McKenzie said, by meeting them before buying. But he conceded they [the board members] would have no real incentive to agree to such a meeting. "You'd want to find out what the climate is around here, what the attitude is toward owners, really to find out how strictly rules are enforced and how assessments are collected," he said. "You might ask some questions about how strict people are. Is it neighborly, is it friendly?"
Note: The reporter asked me if meeting the board members in advance would be a good idea, and I said it would, but that the BOD members have no obligation to do that and it hardly ever happens. I also pointed out that this sort of meeting does occur in housing cooperatives, and it probably contributes to the lower level of conflict found in co-ops.
Saturday, January 12, 2013
New federal indictment coming soon in HOA scheme - News - ReviewJournal.com
New federal indictment coming soon in HOA scheme - News - ReviewJournal.com:
"Federal prosecutors are preparing to seek a long-awaited indictment as early as next week in their final push to charge conspirators in a massive scheme to take over Las Vegas Valley homeowners associations. The Las Vegas Review-Journal has previously reported that as many as a dozen defendants could be named in the corruption indictment being sought by attorneys with the Justice Department's Fraud Section in Washington, D.C."
-------
There have been 28 guilty pleas so far. If the article is correct in saying that as many as twelve new indictments are coming, it would make the network of schemers as many as forty people. Contemplate that: an industry so troubled that, in a single mid-sized city, there is a fraud network encompassing forty people.
"Federal prosecutors are preparing to seek a long-awaited indictment as early as next week in their final push to charge conspirators in a massive scheme to take over Las Vegas Valley homeowners associations. The Las Vegas Review-Journal has previously reported that as many as a dozen defendants could be named in the corruption indictment being sought by attorneys with the Justice Department's Fraud Section in Washington, D.C."
-------
There have been 28 guilty pleas so far. If the article is correct in saying that as many as twelve new indictments are coming, it would make the network of schemers as many as forty people. Contemplate that: an industry so troubled that, in a single mid-sized city, there is a fraud network encompassing forty people.
Brockton, Massachusetts, Considers Eminent Domain To Address Foreclosures
Brockton, Massachusetts, Considers Eminent Domain To Address Foreclosures:
In a move that’s pitting grassroots housing activists against Wall Street interests, the City Council of Brockton, Mass., decided this week to commission a study into the feasibility of using eminent domain powers to seize the mortgages of local residents struggling to pay off their loans.
------
This idea has popped up elsewhere. It will be interesting to see what happens if and when a city does this and it gets challenged in court.
In a move that’s pitting grassroots housing activists against Wall Street interests, the City Council of Brockton, Mass., decided this week to commission a study into the feasibility of using eminent domain powers to seize the mortgages of local residents struggling to pay off their loans.
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This idea has popped up elsewhere. It will be interesting to see what happens if and when a city does this and it gets challenged in court.
Friday, January 11, 2013
Former Clinton Township housing cooperative employee gets 3 years for theft - The Macomb Daily
Former Clinton Township housing cooperative employee gets 3 years for theft - The Macomb Daily:
A 36-year-old woman was ordered to spend more than three years in prison and pay $79,000 in restitution for stealing from the Clinton Township housing cooperative for which she worked.
------------
Yet another one of those isolated instances...
A 36-year-old woman was ordered to spend more than three years in prison and pay $79,000 in restitution for stealing from the Clinton Township housing cooperative for which she worked.
------------
Yet another one of those isolated instances...
Mayor Rahm Emanuel to announce Midway privatization committee - Transportation News - Crain's Chicago Business
Mayor Rahm Emanuel to announce Midway privatization committee - Transportation News - Crain's Chicago Business:
Midway is one of Chicago's two major airports. The first attempt to privatize it failed before the deal could be consummated. Probably a good thing when you consider the disastrous parking meter privatization deal. Now, here they go again. Here's my favorite line: "The committee will be given the authority to hire an independent auditor to make sure the arrangement bears little resemblance to the botched parking meter deal, according to the source."
Midway is one of Chicago's two major airports. The first attempt to privatize it failed before the deal could be consummated. Probably a good thing when you consider the disastrous parking meter privatization deal. Now, here they go again. Here's my favorite line: "The committee will be given the authority to hire an independent auditor to make sure the arrangement bears little resemblance to the botched parking meter deal, according to the source."
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