Rockdale Citizen | Rob Jenkins: Hey, teacher, my HOA is bullying me again

Rockdale Citizen | Rob Jenkins: Hey, teacher, my HOA is bullying me again: My point is that some of our worst bullies these days are not young children or even teenagers but rather adults who should know better. And this is true not only in our schools but in every walk of life. Give certain people a little bit of power, and they're apt to exercise it unjustly.

Ironically, that tends to be especially true in situations where the stakes aren't particularly high -- like a neighborhood homeowners' association. In my experience, few organizations offer more or better opportunities for people to bully others, if they're so inclined.
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Some readers of this blog would agree with the premise but not with the qualifier that the stakes aren't particularly high.

Florida House unanimously approves HOA legislation 37-0

House unanimously approves HOA legislation 37-0 | News - Home:
"The Florida House unanimously approved new home owners association reform legislation by a vote of 37-0 Friday sending what advocates are calling “much needed consumer protection” to Governor Rick Scott’s desk for his signature...The bill holds HOA directors and board members accountable and calls for direct reporting to the Dept. Of Business and Professional Regulation (DBPR) in Tallahassee."

Dan Ariely's Battle Plan for a Condo's Dog Wars | Ask Ariely - WSJ.com

Dan Ariely's Battle Plan for a Condo's Dog Wars | Ask Ariely - WSJ.com:
Here's an imaginative solution to the problem of people not cleaning up after their dogs: "What if the condo management put money in a community fund to pay for a droppings-cleaner, as needed, and used whatever was left at the end of the month for a get-together for all dog owners and their dogs? If lots of money remained each month, the party would include food, drinks and doggy treats; if there was no money, it would just be water. This way, failing to clean up after the dogs would damage the community—the personal and social cost of these actions would increase—and people would be more careful."

Housing board files suit against couple who rented Central Park condo to tourists - NY Daily News

Housing board files suit against couple who rented Central Park condo to tourists - NY Daily News:
"Jodi and Gavin Samuels allegedly rented out their condo on Central Park West to tourists for $250 a night. The building's housing board says the Samuels violated bylaws and want them to pay $500 for each offense."

Illinois General Assembly - Bill Status for HB1293

Illinois General Assembly - Bill Status for HB1293
Here's a link to the Condominium Ombudsman Act page.

Illinois considers ombudsman for condo disputes - chicagotribune.com

State considers ombudsman for condo disputes - chicagotribune.com

Illinois homeowners at odds with their community association have little recourse. They can try to resolve the matter with the board, or they can pay an attorney to do it for them.

Another option recently was introduced to the General Assembly: HB1293, which would create the Office of the Condominium Ombudsman.

"In my role as a legislator, I receive lots and lots of calls, mostly from unit owners and some from board members, looking for relief or oversight of condo association activities," said Rep. Elaine Nekritz, D-Northbrook, who is co-sponsoring the bill with Rep. Sara Feigenholtz, D-Chicago. "People are surprised to learn there is nothing they can do other than hiring a lawyer and going to court. That isn't a very realistic solution for most people."

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This would be a huge step forward. I don't know what the chances of passage are, but the condo owners in this state desperately need a place to take their problems.  Of course, CAI and the lawyers are against it, because it would reduce litigation and thus cut into their income, and it would also interfere with the command and control model they love so much. The lawyer and manager tell the board what to do, the board tells the owners what to do, and government is out of the picture. 

Do HOA security guards overstep their bounds? | www.wsbtv.com

Do HOA security guards overstep their bounds? | www.wsbtv.com: FORSYTH COUNTY, Ga. — A Channel 2 Action News investigation found private security guards pulling over drivers in several local neighborhoods.

They use lights, sirens, and even write traffic tickets, but they aren't real police officers. Channel 2 producers went undercover to catch the activity on video.
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More on the growing Privatopian constabulary.  Film at 10 on Channel 2 Action News.

HOAs Fight Solar, Homeowners Fight Back | Emily Hois

HOAs Fight Solar, Homeowners Fight Back | Emily Hois: But there’s good news for solar power enthusiasts who belong to HOAs: these lawsuits have prompted some states—about two dozen—to limit HOAs' authority to ban solar panels. In Texas, no HOA can prohibit homeowners from installing solar energy systems on their rooftops, fenced-in yards or patios. Colorado HOAs can enforce “architectural guidelines” that can restrict the placement or appearance of solar panels. However, these aesthetic provisions may not result in a significant cost increase for the resident, nor can they hinder the solar system’s efficiency. California’s Solar Rights Act of 1978 prohibits HOAs from interfering with the installation of residential solar panels, although the law does allow for “reasonable restrictions” on solar energy systems. As a result, some HOAs have opposed even modest installations.
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In Privatopia, you can stick 'em where the sun shines as long as the HOA doesn't have any issues.

What HOA issues are appropriate for federal intervention? | HOA Constitutional Government

What HOA issues are appropriate for federal intervention? | HOA Constitutional Government
George Staropoli poses this excellent question, and the answer he got from Nevada congressman Joe Heck (R-Henderson and much of Clark County) shows little understanding of the situation:

"I can certainly understand and appreciate your frustrations. Since HOAs are governed by local or state law rather than federal, it would be best to contact your state assemblyman or state senator and local county officials with your comments."

The fact is that the federal government has been heavily involved in promoting common interest housing since the 1960s, as I explained in detail in my first book on this subject way back in 1994.  Hasn't he ever heard of the FHA or Fannie Mae?  It is just another example of how determined public officials at every level of government are to wash their hands of any responsibility for HOAs and condo associations.  The problems are so enormous, and so many people are profiting from those problems, that it becomes almost impossible to get anybody to do anything until there is a complete disaster. The Las Vegas HOA corruption ring is one example of that.

Wall Street betting billions on single-family homes in distressed markets - The Washington Post

Wall Street betting billions on single-family homes in distressed markets - The Washington Post: MIAMI — Big investors are pouring unprecedented amounts of money into real estate hard hit by the housing crash, bringing those moribund markets back to life but raising the prospect of another Wall Street-fueled bubble that won’t be sustainable.

Drawn by the prospect of double-figure profit margins on rents and the resale of homes whose prices plummeted in the crash, hedge funds, Wall Street investors and other institutions are crowding out individual home buyers.
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Wall Street moves into Privatopia.

Housing defect law debated: Are construction rules a godsend or drag on state's economic recovery? | Reno Gazette-Journal | rgj.com

Housing defect law debated: Are construction rules a godsend or drag on state's economic recovery? | Reno Gazette-Journal | rgj.com: The builders’ automatic legal fees issue stems from a 1995 statute that had the backing of the construction industry, said Reno lawyer Robert Maddox, who has represented homeowners in construction-defect cases for more than 40 years. “In 1995, they (builders) agreed to it because they wanted to get rid of the possibility of punitive damages and emotional distress damages,” Maddox said.
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The ongoing economic tension between housing affordability and construction quality.  This is a long running public policy debate where that tension plays out.

After a long fall, Antelope Valley is back on upswing - latimes.com

After a long fall, Antelope Valley is back on upswing - latimes.com

This L.A. Times article discusses the revival of blighted exurban Privatopia 65 miles from Los Angeles that like many such locations was decimated by foreclosures and unfinished homes and infrastructure when the real estate bubble burst.

But these communities on the distant edges of metro areas continue to have downside risk that makes them inherently economically unsustainable: so-called super commutes.  "You used to be able to afford to commute," Lancaster Mayor R. Rex Parris told The Times. "Now you can't. What good is it to have a cheaper house if you can't afford to get there?"

Neighbors spell ‘stop,’ not ‘yield’ Page 1 of 2 | UTSanDiego.com

Neighbors spell ‘stop,’ not ‘yield’ Page 1 of 2 | UTSanDiego.com: Some neighbors on Jennings Street in Point Loma have thought for over a decade that traffic was speeding through their neighborhood at unacceptable speeds. Dating back to 2000, they asked the city for stop signs to slow the marauders, and the city always said no. A yellow “yield” sign was the best the city could do, the engineers said. Then last July, a stop sign appeared. And another. Who put them in? Not the city. A vigilante sign installer put up the signs, flying in the face of the law. And what do you know — it worked.
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Do it yourself speed laws.  HOAs do it all the time on private streets. Here, the neighbors do it on public streets.

Spectacular frozen waterfall created in China by resident, 58, who left tap on all winter | Mail Online

Spectacular frozen waterfall created in China by resident, 58, who left tap on all winter | Mail Online

He was the only resident left in the building and he wanted to make sure his pipes didn't freeze. And the result is quite spectacular:


So in order to keep the temperature of the pipes above freezing he simply switched on the tap - and then diverted the warm water to flow down the side of the building.
He said: ‘The water running into the pipe is from underground where it is above freezing and that is stopping the water pipes in my house from freezing. If that had happened I really would have had to move out. They want me to move.
'But what they were offering was not enough for me to get another place so I'm refusing to leave. I don't have anywhere to go anyway.’

Employee used condo association credit card for jewelry - Park Ridge Herald-Advocate

Employee used condo association credit card for jewelry - Park Ridge Herald-Advocate

This is the Chicago area. Another condo association employee using the association as an ATM. Just an isolated instance, right? The story is firewalled, but here's the teaser.


MAINE TOWNSHIP — A northwest suburban woman who worked as the office manager of a condominium association used the company’s credit card to buy jewelry and luxury purses for herself, according to police. Barbara Duelfer, 51, of Des Plaines, was charged Saturday with two counts of theft over $500, two counts of forgery and two counts of unlawful use of credit cards with intent to defraud, according to a statement from the Cook County Sheriff’s police. All the charges are felonies.

Bill Text: AZ SB1278 | 2013 | Fifty-first Legislature 1st Regular | Engrossed | LegiScan

Bill Text: AZ SB1278 | 2013 | Fifty-first Legislature 1st Regular | Engrossed | LegiScan

This is now the law in the State of Arizona. It has been signed by the Governor. HOAs may no longer act like they own and govern the public streets.  The idea that such a law is necessary--that HOAs need to be told this--should be unthinkable, but HOAs function as de facto local governments in many states, free from meaningful regulation.

Be it enacted by the Legislature of the State of Arizona:
Section 1.  Title 33, chapter 16, article 1, Arizona Revised Statutes, is amended by adding section 33-1818, to read:
33-1818.  Community authority over public roadways; applicability
A.  NOTWITHSTANDING ANY PROVISION IN THE COMMUNITY DOCUMENTS, AFTER THE PERIOD OF DECLARANT CONTROL, AN ASSOCIATION HAS NO AUTHORITY OVER AND SHALL NOT REGULATE ANY ROADWAY FOR WHICH THE OWNERSHIP HAS BEEN DEDICATED TO OR IS OTHERWISE HELD BY A GOVERNMENTAL ENTITY.
B.  THIS SECTION APPLIES ONLY TO THOSE PLANNED COMMUNITIES FOR WHICH THE DECLARATION IS RECORDED AFTER DECEMBER 31, 2014.

L.A., other hot housing markets are getting frothy, report says - latimes.com

L.A., other hot housing markets are getting frothy, report says - latimes.com: "Everybody I know is trying to do flips right now. It's like the day trading of the 1990s," Nordine said. "We went straight from Armageddon to speculation; there was nothing in between this time."

Still, Nordine is advising clients to buy now if they can, citing low interest rates and low risk of another foreclosure crisis.

"That is how the American economy works now," he said. "It seems as if we just go from one bubble to the next."
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The roller coaster is climbing to the clouds again in some metro areas such as DC and LA.  And when the housing market gets bubbly, it can bode ill for receipts in Privatopia.  HOAs have much smaller assessment bases than municipalities and counties and consequently less ability to absorb housing market volatility and the inevitable bubble bursts and painful hiccups in assessment cash flow.

HOA Accountability Bill Stirs Debate at Capitol | The Texas Tribune

HOA Accountability Bill Stirs Debate at Capitol | The Texas Tribune:
"A bill aimed at making nonprofit homeowners associations more financially accountable and transparent pitted homeowner activists against people representing for-profit HOA contractors on Tuesday. House Bill 3803, by state Rep. Ruth Jones McClendon, D-San Antonio, would require homeowners associations, which have government-like powers to levy assessments and foreclose on homes, to better safeguard the money they collect for the common good of the neighborhood. And it would for the first time introduce state oversight of HOAs — an elusive goal of Texas homeowner activist groups. The legislation would allow the attorney general to investigate breaches of fiduciary responsibility by board members and levy penalties of up to $20,000 per violation. That would go up to $250,000 if the violation was intended to harm an elderly Texan."
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Thanks to a kind correspondent in Texas who sent me the link to this story. It seems that money has become the root of many HOA and condo association problems, something that Tyler Berding has been saying for years now.  In addition to the inadequate reserves problem that Tyler has written about, there are all the conflicts over assessment collection, attorney fee-shifting and excessive fees, questionable charges by management companies, embezzlement, and people taking over associations to milk them.  During the real estate boom the slack was taken up by rising property values that made people feel flush with home equity and made sales easy.  These days, money is tight, property values are stagnant, home equity is a fond memory for many people, and everybody is more easily drawn into conflict.

Dean Baker: Obama Accepts the Agenda of Misguided Washington Elites | Debate Club | US News Opinion

Obama Accepts the Agenda of Misguided Washington Elites | Debate Club | US News Opinion: "Unfortunately, rather than deal with the reality – that we need deficits to sustain demand in a context where the private sector will not do it – the politicians in Washington have gotten hysterical. This is like complaining about our use of water when the school is on fire with the kids still inside."
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The obsession with deficit reduction and austerity budgeting will probably kill the feeble economic growth we are now experiencing, just like it has done in every European country that tried it. That will cause a lot of suffering, but in Washington these days they don't seem to know or care much about the real situation that ordinary people face. That goes for both parties in Congress and the Obama administration.

Banks get bailouts, commit foreclosure fraud and even major crimes, and get slaps on the wrist.  Ordinary people lose their wealth and their jobs and face foreclosure. Now a Democratic president is volunteering to cut Social Security in order to look sufficiently credible to tax-phobic rich people, whose incomes and wealth have grown spectacularly over the last three decades.  Cities go begging to private investors for money to rebuild crumbling infrastructure. Teachers are being laid off and students are giving up on going to college because it is too expensive. Climate change is so far advanced that we need policies aimed at adapting to it, because at this point it can't be reversed--but instead we have congressional committee chairs who think it is a socialist hoax.

And in Washington, the big issue is deficit reduction?  Quite a political system we have here, isn't it?

Broke homeowners association halts trash service in Aldine Village neighborhood | abc13.com

Broke homeowners association halts trash service in Aldine Village neighborhood | abc13.com
As Icy deLight points out in a comment (thanks for the link to this 2008 story) to the post below, there is nothing unusual about HOAs and condo associations having their utilities cut off for non-payment. That makes the place uninhabitable, the authorities take steps to make that official, and eviction of the owners is the next step. As Fred Pilot notes in his comment on the post, the attorney who says this is an unusual thing doesn't know what he's talking about.  The unusual thing is for a local government to get busy and address the problem systematically instead of waiting for the "free market" to solve it. The City of Chicago is the only municipality I know of that has set up a serious program to turn failed condo buildings into apartments. In this city alone, "To date, about 150 Chicago condo buildings, from six-flats to a 36-unit building, are somewhere in the process of being converted into apartment buildings. "  So don't tell me the problem is uncommon.