Privatization fetishists resist reform, costing cities millions - Salon.com
“It’s an ideological wave,” says Evan McKenzie, lawyer and professor of political science at the University of Illinois-Chicago and author of two books on privatization. “[Politicians] try to argue that privatization is about sheer dollars and sense, that it’s cost benefit analysis. That’s hogwash.”
Saturday, September 21, 2013
Vincenz Homeowners Association bans organized sports at Gilbert park
Vincenz Homeowners Association bans organized sports at Gilbert park
Well, there's one difference between public and private local government. At least real governments know what parks are for.
Well, there's one difference between public and private local government. At least real governments know what parks are for.
Sunday, September 15, 2013
Speech can be dangerous: The cost of defamation | Washington Times Communities
Speech can be dangerous: The cost of defamation | Washington Times Communities
"WASHINGTON, September 15, 2013 – A Roanoke, Virginia jury recently awarded $250,000.00 to a former homeowners association president (Clatterbuck vs. Burkett). A disgruntled resident in the community was upset about association repair fees, so he spread multiple false comments about the president and the president’s wife, accusing them of criminal sexual activity."
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"WASHINGTON, September 15, 2013 – A Roanoke, Virginia jury recently awarded $250,000.00 to a former homeowners association president (Clatterbuck vs. Burkett). A disgruntled resident in the community was upset about association repair fees, so he spread multiple false comments about the president and the president’s wife, accusing them of criminal sexual activity."
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Saturday, September 14, 2013
Family beats HOA in suit over pet pig - San Antonio Express-News
Family beats HOA in suit over pet pig - San Antonio Express-News: District Judge Mike Engelhart ruled that evidence is clear that this pig breed is considered a household pet and that they are not used for commercial purposes. He also said the dispute puts a spotlight on homeowners associations' restrictions and residents' property rights.
“I think we need to forget about this being about a pig for a moment and look at the broader issue of homeowners associations and residents,” Engelhart said. “Homeowners associations are there, on one hand, to maintain a neighborhood in a particular way, but they also have responsibilities not to infringe too much on homeowner's use of their land the way they see fit.”
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Thus spake hizzoner.
“I think we need to forget about this being about a pig for a moment and look at the broader issue of homeowners associations and residents,” Engelhart said. “Homeowners associations are there, on one hand, to maintain a neighborhood in a particular way, but they also have responsibilities not to infringe too much on homeowner's use of their land the way they see fit.”
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Thus spake hizzoner.
HOA Horrors and How Not to Fall Victim to Them | AOL Real Estate
HOA Horrors and How Not to Fall Victim to Them | AOL Real Estate
"When purchasing real estate, you might be one of the 25 percent of people who purchase a property in a common interest development, which is more commonly known as a homeowners association, or HOA. And while all properties have issues, HOAs have a unique set of additional operational, legal and financial issues that buyers must consider, analyze and review in conjunction with their purchase.
Because many horror stories are associated with HOAs, some people won't even consider buying into one, which is understandable. It's ultimately a personal choice for a buyer to consider. These are few of those HOA horror stories."
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Wow. The press has really sunk its teeth into this "horror story" angle. No wonder the industry keeps paying for polls showing how happy everybody is.
"When purchasing real estate, you might be one of the 25 percent of people who purchase a property in a common interest development, which is more commonly known as a homeowners association, or HOA. And while all properties have issues, HOAs have a unique set of additional operational, legal and financial issues that buyers must consider, analyze and review in conjunction with their purchase.
Because many horror stories are associated with HOAs, some people won't even consider buying into one, which is understandable. It's ultimately a personal choice for a buyer to consider. These are few of those HOA horror stories."
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Wow. The press has really sunk its teeth into this "horror story" angle. No wonder the industry keeps paying for polls showing how happy everybody is.
Friday, September 13, 2013
HOA, Celina homeowner battle over fines for roof color | wfaa.com Dallas - Fort Worth
HOA, Celina homeowner battle over fines for roof color | wfaa.com Dallas - Fort Worth: The shingles had to be a color called "weathered wood," and had to be approved by the HOA architectural committee. They thought they'd jumped through those hoops, hired a contractor, and work began.
Then, there was a knock on the door. It was the roof police.
David Hawkes said the president of the homeowners association and the HOA's management company actually told them to stop construction.
"'The roof you're putting on is not going to match,'" Hawkes recalled the pair saying. "'It's not going to match the code. It's not going to be accepted here.'"
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Privatopia's roof police will undoubtedly be using satellite imagery and spectrum analysis to ensure all rooftops are a uniform color lest property values be destroyed by a slightly off color roof.
Then, there was a knock on the door. It was the roof police.
David Hawkes said the president of the homeowners association and the HOA's management company actually told them to stop construction.
"'The roof you're putting on is not going to match,'" Hawkes recalled the pair saying. "'It's not going to match the code. It's not going to be accepted here.'"
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Privatopia's roof police will undoubtedly be using satellite imagery and spectrum analysis to ensure all rooftops are a uniform color lest property values be destroyed by a slightly off color roof.
Wednesday, September 11, 2013
California city backs plan to seize negative equity mortgages - Yahoo! News Canada
California city backs plan to seize negative equity mortgages - Yahoo! News Canada
RICHMOND, Calif (Reuters) - Richmond, California's leaders approved on Wednesday morning a plan for the city to become the first in the nation to acquire mortgages with negative equity in a bid to keep local residents in their homes...Richmond can now invoke eminent domain if trusts for more than 620 delinquent and performing "underwater" mortgages reject offers made by the city to buy the loans at deep discount pegged to their properties' current appraised prices to refinance them and reduce their principal.
RICHMOND, Calif (Reuters) - Richmond, California's leaders approved on Wednesday morning a plan for the city to become the first in the nation to acquire mortgages with negative equity in a bid to keep local residents in their homes...Richmond can now invoke eminent domain if trusts for more than 620 delinquent and performing "underwater" mortgages reject offers made by the city to buy the loans at deep discount pegged to their properties' current appraised prices to refinance them and reduce their principal.
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This should set off a firestorm.
Monday, September 09, 2013
Owner, CFO of homeowner association management company accused of embezzlement Ventura County Star
Owner, CFO of homeowner association management company accused of embezzlement Ventura County Star: She and her boss, Kristin Davis, 44, the owner and CEO of Paradigm Management Group, were arrested last weekend after a years-long investigation. Hoff-Solomon-Ramsey was the company’s chief financial officer, authorities said.
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Isolated incident No. 547,851.
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Isolated incident No. 547,851.
Sunday, September 08, 2013
Left with nothing | The Washington Post
Left with nothing | The Washington Post
The retired Marine sergeant lost his house on that summer day two years ago through a tax lien sale — an obscure program run by D.C. government that enlists private investors to help the city recover unpaid taxes. For decades, the District placed liens on properties when homeowners failed to pay their bills, then sold those liens at public auctions to mom-and-pop investors who drew a profit by charging owners interest on top of the tax debt until the money was repaid. But under the watch of local leaders, the program has morphed into a predatory system of debt collection for well-financed, out-of-town companies that turned $500 delinquencies into $5,000 debts — then foreclosed on homes when families couldn’t pay, a Washington Post investigation found.
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Thanks to Mystery Reader for the link to this infuriating story. These "tax farmers" are all over the country, but it appears that at least in DC it has "morphed" into something much more dangerous. To own a home today is to be exposed to a terrifying range of predatory business practices. And look at what's coming up in parts 2 and 3 of this story:
"Part 2 — As federal agents investigated a sweeping bid-rigging scheme at Maryland’s tax auctions, some of those same suspects were in the District, engaging in dozens of rounds of unusual bidding. Coming Monday. Part 3 — District tax officials have made hundreds of mistakes in recent years by declaring property owners delinquent even after they paid their taxes, forcing them to fight for their homes. Coming Tuesday."
The retired Marine sergeant lost his house on that summer day two years ago through a tax lien sale — an obscure program run by D.C. government that enlists private investors to help the city recover unpaid taxes. For decades, the District placed liens on properties when homeowners failed to pay their bills, then sold those liens at public auctions to mom-and-pop investors who drew a profit by charging owners interest on top of the tax debt until the money was repaid. But under the watch of local leaders, the program has morphed into a predatory system of debt collection for well-financed, out-of-town companies that turned $500 delinquencies into $5,000 debts — then foreclosed on homes when families couldn’t pay, a Washington Post investigation found.
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Thanks to Mystery Reader for the link to this infuriating story. These "tax farmers" are all over the country, but it appears that at least in DC it has "morphed" into something much more dangerous. To own a home today is to be exposed to a terrifying range of predatory business practices. And look at what's coming up in parts 2 and 3 of this story:
"Part 2 — As federal agents investigated a sweeping bid-rigging scheme at Maryland’s tax auctions, some of those same suspects were in the District, engaging in dozens of rounds of unusual bidding. Coming Monday. Part 3 — District tax officials have made hundreds of mistakes in recent years by declaring property owners delinquent even after they paid their taxes, forcing them to fight for their homes. Coming Tuesday."
AG’s Office: Verdict kills new HOA laws
AG’s Office: Verdict kills new HOA laws: PHOENIX — Concluding state legislators likely violated the Arizona Constitution, the Attorney General’s Office has agreed not to enforce some new laws governing homeowner associations.
In an agreement filed Friday, the state agreed to accept a court order that eight separate provisions of SB1454 were enacted illegally and are void. These include language that was designed to prohibit cities and counties from requiring developers to established planned communities as a condition of getting the necessary zoning or permits.
It also knocks out another section that would have limited the ability of associations from demanding that homeowners furnish them with certain information about those to whom they rent their units. Also gone are various changes in things like casting absentee ballots in HOA issues
In an agreement filed Friday, the state agreed to accept a court order that eight separate provisions of SB1454 were enacted illegally and are void. These include language that was designed to prohibit cities and counties from requiring developers to established planned communities as a condition of getting the necessary zoning or permits.
It also knocks out another section that would have limited the ability of associations from demanding that homeowners furnish them with certain information about those to whom they rent their units. Also gone are various changes in things like casting absentee ballots in HOA issues
Saturday, September 07, 2013
Homeowner wins tree battle against Southern Highlands HOA - www.ktnv.com
Homeowner wins tree battle against Southern Highlands HOA - www.ktnv.com:
"In the Spring, the Southern Highlands HOA began sending Louis letters saying he was in violation for not having trees in his front yard. "My house has more greenery than any house you wanna go around and look at, and they're saying I still need a tree, which I do not agree with that." They told him he had to put two trees in, despite the fact that he bought the home brand new from builder Pulte Homes, who installed the landscape in 2002. "If they had came to us a year after we came, I would have probably had to give in, but 11 years?" Louis says incredulously. "I don't see why I have to give in." Another issue wrapped up in all this is that by requiring homeowners to put in more trees, the HOA is requiring homeowners to use more water. And many say that's just plain irresponsible, considering the drought situation we're in here in Southern Nevada."
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Ordering people to plant more trees in a Southern Nevada yard? This makes sense to somebody? How, please?
"In the Spring, the Southern Highlands HOA began sending Louis letters saying he was in violation for not having trees in his front yard. "My house has more greenery than any house you wanna go around and look at, and they're saying I still need a tree, which I do not agree with that." They told him he had to put two trees in, despite the fact that he bought the home brand new from builder Pulte Homes, who installed the landscape in 2002. "If they had came to us a year after we came, I would have probably had to give in, but 11 years?" Louis says incredulously. "I don't see why I have to give in." Another issue wrapped up in all this is that by requiring homeowners to put in more trees, the HOA is requiring homeowners to use more water. And many say that's just plain irresponsible, considering the drought situation we're in here in Southern Nevada."
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Ordering people to plant more trees in a Southern Nevada yard? This makes sense to somebody? How, please?
Man stabbed in dispute with HOA president | UTSanDiego.com
Man stabbed in dispute with HOA president | UTSanDiego.com:
SAN DIEGO — A man was stabbed Friday during a dispute between the president of an Otay Mesa homeowners association and a worker, San Diego police said. The 59-year-old HOA officer got into an argument with the 39-year-old man about work that was done for the association, police Officer David Stafford said.
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I haven't tried to add up all the incidents of HOA and condo violence, but these incidents underscore how intense HOA/condo neighborhood disputes can be, beyond the sense of injustice that arises in many conflicts. One reason is the inability to separate people. Two people can get into a dispute at a baseball game or a bar, and after they are separated they may never see each other again. But when people live in the same neighborhood they run into each other again and again. And in a condo association or HOA, there is another level of connection because everybody is linked in an economic and governance arrangement. So there is no way to separate the combatants unless one of them moves. A second reason is that HOA and condo disputes often involve people's feelings about their home, which are intensely personal. The home is where we can be ourselves and where we go when we want to feel safe. If people feel that they are being plagued by neighbors, even when they are home, they often experience a deep sense of insecurity, intrusion, and even violation.
SAN DIEGO — A man was stabbed Friday during a dispute between the president of an Otay Mesa homeowners association and a worker, San Diego police said. The 59-year-old HOA officer got into an argument with the 39-year-old man about work that was done for the association, police Officer David Stafford said.
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I haven't tried to add up all the incidents of HOA and condo violence, but these incidents underscore how intense HOA/condo neighborhood disputes can be, beyond the sense of injustice that arises in many conflicts. One reason is the inability to separate people. Two people can get into a dispute at a baseball game or a bar, and after they are separated they may never see each other again. But when people live in the same neighborhood they run into each other again and again. And in a condo association or HOA, there is another level of connection because everybody is linked in an economic and governance arrangement. So there is no way to separate the combatants unless one of them moves. A second reason is that HOA and condo disputes often involve people's feelings about their home, which are intensely personal. The home is where we can be ourselves and where we go when we want to feel safe. If people feel that they are being plagued by neighbors, even when they are home, they often experience a deep sense of insecurity, intrusion, and even violation.
Friday, September 06, 2013
Court: Deed restrictions can't ban 'for sale' signs on homes
Court: Deed restrictions can't ban 'for sale' signs on homes
Thanks to Fred Fischer for the link to this story. So the HOA was so determined to prohibit "for sale" signs that it launched a doomed-from-day-one challenge to the constitutionality of the 2009 state law that protects a homeowner's right to post the signs. The statute is presumed to be constitutional, and the burden is on the HOA to show that the statute has no "significant or legitimate purpose." What chance did the HOA of invalidating this statute? How would you like to be one of the owners who has to pay the HOA's lawyers who lost in the trial court and then took the case up on appeal and lost again?
"PHOENIX — The right of state lawmakers to allow homeowners to post “for sale’’ signs trumps any deed restrictions that ban them, the Arizona Court of Appeals has ruled. In a unanimous ruling Tuesday, the judges rebuffed arguments by a planned community that its pre-existing ban on such signs remains valid despite a 2009 law to the contrary. Potentially more significant, the appellate judges rejected the contention that the 2009 law unconstitutionally interfered with the contracts previously signed by all property owners agreeing to the restriction...As to the constitutional claim by the association, Swann said it is up to the group challenging the law to show that it “substantially impairs’’ the contractual arrangement. Even then, the judge said, a challenger must also show there is no “significant or legitimate public purpose” behind the law, or that the impairment is an “unreasonable means’’ of achieving that purpose."
Thanks to Fred Fischer for the link to this story. So the HOA was so determined to prohibit "for sale" signs that it launched a doomed-from-day-one challenge to the constitutionality of the 2009 state law that protects a homeowner's right to post the signs. The statute is presumed to be constitutional, and the burden is on the HOA to show that the statute has no "significant or legitimate purpose." What chance did the HOA of invalidating this statute? How would you like to be one of the owners who has to pay the HOA's lawyers who lost in the trial court and then took the case up on appeal and lost again?
"PHOENIX — The right of state lawmakers to allow homeowners to post “for sale’’ signs trumps any deed restrictions that ban them, the Arizona Court of Appeals has ruled. In a unanimous ruling Tuesday, the judges rebuffed arguments by a planned community that its pre-existing ban on such signs remains valid despite a 2009 law to the contrary. Potentially more significant, the appellate judges rejected the contention that the 2009 law unconstitutionally interfered with the contracts previously signed by all property owners agreeing to the restriction...As to the constitutional claim by the association, Swann said it is up to the group challenging the law to show that it “substantially impairs’’ the contractual arrangement. Even then, the judge said, a challenger must also show there is no “significant or legitimate public purpose” behind the law, or that the impairment is an “unreasonable means’’ of achieving that purpose."
Saturday, August 31, 2013
Duck Dynasty vs the HOA
Shu Bartholomew sent me these links to YouTube clips from a TV show (I think) that involves some hillbillies who suddenly discover that they living in an HOA. Where's Buddy Ebsen?
http://www.youtube.com/watch?v=P0vSJIup-UY
http://www.youtube.com/watch?v=uMTTpi5KmKk
http://www.youtube.com/watch?v=P0vSJIup-UY
http://www.youtube.com/watch?v=uMTTpi5KmKk
Thursday, August 29, 2013
Details revealed surrounding Hideaway Lake community investigati - KYTX CBS 19 Tyler Longview News Weather Sports
Details revealed surrounding Hideaway Lake community investigati - KYTX CBS 19 Tyler Longview News Weather Sports
So what we have here is a Texas HOA that is under investigation by the Smith County Sheriff's Office. It appears that a tree trimming company has complained that one or more HOA employees was or were demanding kickbacks in exchange for getting a contract. In a followup to the original story, it is reported that the general manager has been fired.
"The affidavit states two board members met with investigators about concerns surrounding some Hideaway Lake employees. "I'm going to use the word alleged, that he had to pay off or give a kickback to a Hideaway employee in order to do business in Hideaway," said Jerry Toon, board member. The affidavit reveals a vendor complained that the maintenance supervisor was requiring a 50% kickback from the vendor to cut trees in Hideaway Lake. When the board started investigating, the affidavit says the general manager stopped all access to the invoices and records."
So what we have here is a Texas HOA that is under investigation by the Smith County Sheriff's Office. It appears that a tree trimming company has complained that one or more HOA employees was or were demanding kickbacks in exchange for getting a contract. In a followup to the original story, it is reported that the general manager has been fired.
"The affidavit states two board members met with investigators about concerns surrounding some Hideaway Lake employees. "I'm going to use the word alleged, that he had to pay off or give a kickback to a Hideaway employee in order to do business in Hideaway," said Jerry Toon, board member. The affidavit reveals a vendor complained that the maintenance supervisor was requiring a 50% kickback from the vendor to cut trees in Hideaway Lake. When the board started investigating, the affidavit says the general manager stopped all access to the invoices and records."
Wednesday, August 28, 2013
Don't let emotions color redecorating projects - chicagotribune.com
Don't let emotions color redecorating projects - chicagotribune.com
"For some community associations, choosing a paint color is more difficult than passing a special assessment. "Board members often look at decorating as a personal decision rather than a business decision," said Cathy Ryan, president of Property Specialists Inc. in Rolling Meadows. "They typically want what they would put in their homes, not something that is pleasing to everyone." Then hurt feelings and angry words linger, sometimes for years, when someone's favorite color or style isn't selected, she said."
"For some community associations, choosing a paint color is more difficult than passing a special assessment. "Board members often look at decorating as a personal decision rather than a business decision," said Cathy Ryan, president of Property Specialists Inc. in Rolling Meadows. "They typically want what they would put in their homes, not something that is pleasing to everyone." Then hurt feelings and angry words linger, sometimes for years, when someone's favorite color or style isn't selected, she said."
Feds: Bank chairman used bailout money to buy luxury condo - NBC News.com
Feds: Bank chairman used bailout money to buy luxury condo - NBC News.com
"A bank chairman from Missouri pleaded guilty on Tuesday to lying about how he used bailout money given to banks during the 2008 economic crisis. Rather than using the federal funds to stabilize his small bank, court records say, the chairman spent about a third of the money on an oceanfront condo in Florida. Darryl Layne Woods, 48, of Columbia, Mo., could be sentenced up to a year in prison and may also have to pay a $100,000 fine. Lying to federal officials about how the money was spent is a misdemeanor crime. Court records do not say whether Woods will be charged with misusing the money, which came from the Troubled Asset Relief Program, or TARP."
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Well, that's pretty disgusting.
"A bank chairman from Missouri pleaded guilty on Tuesday to lying about how he used bailout money given to banks during the 2008 economic crisis. Rather than using the federal funds to stabilize his small bank, court records say, the chairman spent about a third of the money on an oceanfront condo in Florida. Darryl Layne Woods, 48, of Columbia, Mo., could be sentenced up to a year in prison and may also have to pay a $100,000 fine. Lying to federal officials about how the money was spent is a misdemeanor crime. Court records do not say whether Woods will be charged with misusing the money, which came from the Troubled Asset Relief Program, or TARP."
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Well, that's pretty disgusting.
Tuesday, August 27, 2013
Homeowner group backs off claim that couple with Cal-Vet loan don't own their home - Our Region - The Sacramento Bee
Homeowner group backs off claim that couple with Cal-Vet loan don't own their home - Our Region - The Sacramento Bee: A South Natomas couple in an ugly fight with their homeowners association won a partial victory last week, after a lawyer representing the association's board backpedaled on his assertion that they weren't homeowners because they had a home loan for military veterans.
While Allen Campbell, a 75-year-old disabled Marine, lay in a hospital bed on Tuesday night after fracturing his back in a fall, his wife, Cynthia Campbell, attended her first board meeting of the Sonora Springs Homeowners Association in months.
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These kinds of situations arise often in Privatopia where homeowners are viewed as irritants rather than constituents served by HOA boards. That in turn overly personalizes relations between board members and owners and sets the stage for court battles -- and substantial legal exposure for HOAs when the unit owners get government agencies to go to bat for them such as in this case.
While Allen Campbell, a 75-year-old disabled Marine, lay in a hospital bed on Tuesday night after fracturing his back in a fall, his wife, Cynthia Campbell, attended her first board meeting of the Sonora Springs Homeowners Association in months.
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These kinds of situations arise often in Privatopia where homeowners are viewed as irritants rather than constituents served by HOA boards. That in turn overly personalizes relations between board members and owners and sets the stage for court battles -- and substantial legal exposure for HOAs when the unit owners get government agencies to go to bat for them such as in this case.
Monday, August 26, 2013
Chicago loses court challenge to vacant building registry - chicagotribune.com
Chicago loses court challenge to vacant building registry - chicagotribune.com
"Vacant buildings in foreclosure with mortgages backed by Fannie Mae and Freddie Mac do not have to follow Chicago’s vacant building ordinance, a federal judge has ruled. The decision, filed Friday in Chicago by U.S. District Court Judge Thomas Durkin, deals a blow to the city, which is trying to grapple with thousands of empty buildings caught up in a lengthy foreclosure process and dragging down neighborhoods. It also has national implications. More than 1,000 municipalities around the country, by one count, have laws that require the registration and maintenance of vacant properties."
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The ordinance requires the building owner to pay a $500 fee, among other things, and the judge saw this as an effort by the city to tax the federal government, which has been unconstitutional since McCulloch v. Maryland in 1819. This is just a district court so it isn't a precedent for any other court, but it could encourage the feds to try the same argument elsewhere. That's unfortunate, because cities need some way to address this problem. We live in a society where it seems that financial institutions can do whatever they want with no consequences, and governments are restricted by courts and legislatures when they try to protect us from the "externalities" of business transactions.
"Vacant buildings in foreclosure with mortgages backed by Fannie Mae and Freddie Mac do not have to follow Chicago’s vacant building ordinance, a federal judge has ruled. The decision, filed Friday in Chicago by U.S. District Court Judge Thomas Durkin, deals a blow to the city, which is trying to grapple with thousands of empty buildings caught up in a lengthy foreclosure process and dragging down neighborhoods. It also has national implications. More than 1,000 municipalities around the country, by one count, have laws that require the registration and maintenance of vacant properties."
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The ordinance requires the building owner to pay a $500 fee, among other things, and the judge saw this as an effort by the city to tax the federal government, which has been unconstitutional since McCulloch v. Maryland in 1819. This is just a district court so it isn't a precedent for any other court, but it could encourage the feds to try the same argument elsewhere. That's unfortunate, because cities need some way to address this problem. We live in a society where it seems that financial institutions can do whatever they want with no consequences, and governments are restricted by courts and legislatures when they try to protect us from the "externalities" of business transactions.
Sunday, August 25, 2013
8 Ways Privatization Has Failed America | Common Dreams
8 Ways Privatization Has Failed America | Common Dreams
This is an article by Paul Buchheit that talks about health care, water, internet/tv/phone service, transportation, banking, prisons, education, and consumer protection regulation. You can also watch him on YouTube. He teaches in the School for New Learning at DePaul University in Chicago.
This is an article by Paul Buchheit that talks about health care, water, internet/tv/phone service, transportation, banking, prisons, education, and consumer protection regulation. You can also watch him on YouTube. He teaches in the School for New Learning at DePaul University in Chicago.
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