Monday, November 17, 2014

Residents ask court to remove 3 HOA board members

http://www.sun-sentinel.com/local/broward/fl-lawsuit-tamarac-hoa-20141117-story.html
"Residents of a 55-plus neighborhood are so fed up with four members of their homeowners association board that they are asking a judge to help remove them. Nearly 75 residents of the Mainlands 3are asking a Broward circuit court judge to forbid the four from writing checks and to hold a special meeting within 48 hours to allow a removal vote."
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This is an election dispute. Judges tend to be reluctant to reverse HOA elections because they think if they start doing it soon they will be doing little else.

Sunday, November 16, 2014

The Unfinished Suburbs of America - The Atlantic

The Unfinished Suburbs of America - The Atlantic: There are hundreds of zombie subdivisions like this one scattered across the country. They're one of the most visible reminders of the housing boom and bust, planned and paved in the heady days where it seemed that everybody wanted a home in the suburbs, and could afford it, too. But when the economy tanked, many of the developers behind these subdivisions went belly-up, and construction stopped. In some cases, a few people have moved into homes in these half-built subdivisions, requiring services to be delivered there. In others, the land is empty, except for roads, sidewalks, and the few street signs that haven't been stolen yet. In some counties in the West, anywhere from 15 to 33 percent of all subdivision lots are vacant, according to the Sonoran Institute.
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It's going to take a long time for these unfinished Privatopias to recover from the crash of the burbs in the latter half of the previous decade.

Friday, November 14, 2014

Local lawmakers work towards HOA legislation - WMBFNews.com, Myrtle Beach/Florence SC, Weather

Local lawmakers work towards HOA legislation - WMBFNews.com, Myrtle Beach/Florence SC, Weather



Good luck, folks. It's the standard line about disclosure--that's all the help you will get from "law makers," and it isn't worth much. What good is disclosure when (a) nearly all new housing is in HOA or other CIDs so you have no choice, and (b) every single word of "what they are signing up for" is incomprehensible, non-negotiable, boilerplate?  

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"HORRY COUNTY, SC (WMBF) - Local law makers are working on a draft bill for HOA legislation. The bill will focus on three trending issues they feel would hold the most significance on the floor while helping the most people.  A top concern for some law makers is to make sure people know what they are signing up for when it comes to their HOAs."

Thursday, November 13, 2014

Does HUD's privatization scheme mean the end of public housing?

http://america.aljazeera.com/opinions/2014/11/public-housing-renovationrentalassistancedemonstration.html

"Launched in 2013, the RAD (Rental Assistance Demonstration) will hand over 60,000 units of public housing to private management by 2015. While that’s only a fraction of the nearly 1.2 million public housing units nationwide, RAD’s reach could soon expand: HUD Secretary Julián Castro and participating developers are lobbying Congress to lift the cap set during the program’s initial phase and allow more conversions to private ownership, and HUD is requesting $10 million toward the expansion of the RAD."
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The ideology of privatization is so entrenched in the neoliberal wing of the Democratic Party that they won't defend anything public anymore. It turns out in practice that these programs end up being disasters in many cases, but  by then the profit-takers are in the Bahamas and the rest of us are left to clean up the mess. We'll see how this RAD program works in practice.

Cigarette rage shuts down public meeting over tobacco ban

http://www.boston.com/news/2014/11/12/unruly-crowd-shuts-down-westminster-tobacco-ban-meeting/SpTOwv1ttrcNmcrB7C5RZK/story.html

So this is what freedom is all about for some people: cigarettes.  The tiny little town of Westminster, Massachusetts, is considering a ban on the sale of tobacco products. That brought out a host of flag-draped, nicotine-addicted oldsters who were so angry and out of control that the  meeting had to be shut down. They were screaming about freedom. Nonsense. It's about public safety.  The city is trying to prevent the tobacco industry from hooking yet another generation of  their children on the addictive drug that they are peddling inside their cancerous little death-tubes. Smoking kills 480,000 Americans every year.  The cost to all of us is enormous. According to the CDC, the cost is:
  • More than $289 billion a year, including at least $133 billion in direct medical care for adults and more than $156 billion in lost productivity
  • $5.6 billion a year (2006 data) in lost productivity from exposure to secondhand smoke
http://www.cdc.gov/tobacco/data_statistics/fact_sheets/fast_facts/

While I'm on the topic, I've often wondered why smokers think it is perfectly acceptable to fling cigarette butts all over creation.  Why do they think this is anything but littering?

Wednesday, November 12, 2014

Domino’s founder turning FL town into unconstitutional contraception-free ‘Catholic enclave’

Domino’s founder turning FL town into unconstitutional contraception-free ‘Catholic enclave’

I've posted about Ave Maria before. Let's see how this shapes up--do we have another Marsh v. Alabama on our hands?

Ten buildings in San Francisco where the HOA fees are higher than the rent

http://sf.curbed.com/archives/2014/11/11/mapping_10_buildings_with_hoa_fees_higher_than_your_rent.php


"The highest HOA fees at 1001 surpass the $5,000 mark—which is high above the recent citywide median rent of $3,488. The 10th-place HOA fee on our map is $2,838, which is still more than the median rent for a one-bedroom in Bernal."
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After which the article goes on to rationalize and justify the high fees as "boring homeownery stuff" and "high-dollar extras" like doormen, without mentioning management company charges, senseless litigation, and other costs that  are more controversial than paying for utilities. It is getting harder to tell the difference between real estate reporters and PR flacks for the housing  industry.

Tuesday, November 11, 2014

Park Ridge residents sued for objecting to condo development

http://www.chicagotribune.com/suburbs/park-ridge-niles/ct-park-ridge-lawsuit-met-20141111-story.html

This is a SLAAP suit (Strategic Lawsuit Against Public Participation) against some neighbors who objected to construction of a condo project.  City officials and twenty citizens who attended two public meetings are named as defendants.  Got your local democracy right here.

Monday, November 10, 2014

Six month sentence for public sex in retirement "community"

http://www.dailymail.co.uk/news/article-2828952/Couple-sentenced-six-months-jail-having-sex-outdoors-Florida-retirement-community-go.html

Six months in jail for having public sex in a retirement "community"? And it's the second time a sentence like this has been imposed for public sex in this place. Are you kidding me?  They should get a medal. This place is called "The Villages,"  but perhaps "Cotton Mather Acres" would be a better name.

Selling fast: public goods, profits, and state legitimacy

http://bostonreview.net/books-ideas/mike-konczal-profits-state-legitimacy-parrillo-goldstein-balko#.VGDbvdxAADs.twitter

Mike Konczal reviews three books dealing with the failures of privatization and in the process writes a brilliant  essay. A taste:

"Through the first half of our country’s history, public officials were paid according to the profit motive, and it was only through the failures of that system that a fragile accountability was put into place during the Progressive Era. One of the key sources of this accountability was the establishment of salaries for public officials who previously had been paid on commission. As this professionalized system is dismantled, once-antique notions are becoming relevant again. Consider merit pay schemes whereby teachers are now meant to compete with each other for bonuses. This mirrors the 1770 Maryland assembly’s argument that public officials “would not perform their duties with as much diligence when paid a fixed salary as when paid for each particular service.” And note that the criminal justice system now profits from forfeiture of property and court fees levied on offenders, recalling Thomas Brackett Reed, the House Republican leader who, in 1887, argued, “In order to bring your criminals against the United States laws to detection” you “need to have the officials stimulated by a similar self-interest to that which excites and supports and sustains the criminal.”

Wednesday, November 05, 2014

Homeowners association pulls plug on Waterford woman's Volt - WXYZ.com

Homeowners association pulls plug on Waterford woman's Volt - WXYZ.com: (WXYZ) - Natalie Forte is eco-friendly and loves her Chevy Volt.

But, her homeowners association doesn't share her enthusiasm.

The resident owns a condo along Elizabeth Lake Road in Waterford and says the homeowners association doesn't have rules against plug-in cars. But the HOA has cut-off power to Forte's garage.

Forte tells Action News starting in June she would charge up her new car in her detached garage. Electricity to the garages are under shared expenses residents pay as part of their monthly HOA fees.

After a few months, the association told Forte the expense was too much and wanted her to pay for the extra electricity.

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Add electric vehicles to the list of issues that generate bad press for Privatopia. Film at 10 on WXYZ, Detroit.

Election 2014--my interpretation

I look at elections by starting with the structural factors first.  Democrats had a difficult set of structural factors to overcome.  But they took a bad hand and did worse than expected. 

1.  Of the 36 Senate seats up for election, 21 were held by Democrats and 15 by Republicans, so the Democrats had more seats to defend and were more exposed to the risk of losing seats.  

2.  And 7 of those 21 Democratic senators were in states that Romney won just two years ago--what we call red states.  Democrats have a hard time winning in those states in the best of times.

3. Moreover, the whole class of senators was elected last in 2008, when Obama was elected, McCain took a drubbing, and the whole Republican brand was in the tank because they wrecked the economy and stuck us in two wars that we had obviously lost. That's why so many Democrats were elected in red states--they had Obama "hope and change" coattails, running nationally against a party in relative disrepute. 

That's all changed now. Twenty one Democratic candidates (well, 20 plus one independent) had to run in 2014 with no presidential coattails, with one-third of them in red states. In fact, Obama was widely seen as a drag on the ticket even though he wasn't on it.  The public has a short memory and independent voters in particular walk  in space a large part of the time, so they don't remember how Bush and his team wrecked the place. 

So everybody knew Republicans would win the Senate, just based on structural or fundamental factors.  But last night's results were worse than they should have been for Democrats, even given those realities.  Why?  I see two main reasons:

Money: I think when the FEC and other reports are in, it will turn out that Republicans outspend Democrats substantially. The "dark money" factor--independent spending by non-profits funded by right-wing plutocrats--looks at this point like it heavily favored Republicans. Independent voters, who for the most part just don't understand politics but think they do, are more easily swayed by 30 second ads that focus on candidate image. But we shall see.

Base voters: The Democratic party has lost its connection with the social groups that should be its base. Young people; working  and middle class people; black, latino, and asian people; seniors; women.  Instead, again and again Democrats, including most especially Obama, have tried to compete with Republicans for the love of the rich and powerful.  Banks, insurance companies, manufacturers, big pharma, and on and on.  They have benefited consistently.  But where was the relief for middle-class homeowners? How about students drowning in college loan debt? Why are we still wasting billions in pointless wars in the Middle East? 

But here's the quandary Democrats face: How tdo they get the money they need to compete against the Republicans--who gleefully sell out to the highest bidder--while serving the interests of people who are not in the top 1% or even the top 10%?  

The answer, I think, is that they have to take a big leap and transform themselves back into what they were from 1933 until Reagan came along: the party of working people, an economically populist party.  And they have, I think, a very short time to do that, because the 2016 election cycle is already underway.  Right now we have on offer a battle between the Republican Party and the Republican Lite Party. The result of such a race in 2016 will probably be a Republican president and congress.

Tuesday, November 04, 2014

Homeowner associations seen as mini-governments

http://www.timesdispatch.com/news/local/henrico/homeowner-associations-seen-as-mini-governments/article_2827ee0d-376b-5fca-bff3-97f6b4b8bcac.html

"When homeowners associations make the news, it’s usually for some sort of dispute with a resident: a fight about a mailbox, a garden, a sign or a flag. But the associations are nearly ubiquitous for new residential housing in the Richmond area, embraced by developers as a way to handle long-term care of common amenities and by local officials as “mini-governments” that can help maintain order and property value."
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Nearly ubiquitous, indeed. And not only in the Richmond area.

Vegas HOA takeover case defense attorney moves for dismissal

http://www.reviewjournal.com/news/las-vegas/hoa-case-lawyer-moves-dismiss-charging-prosecutor-misconduct

The claim: that the prosecution committed misconduct by not agreeing to keep secret the records of lead defendant Leon Belzer's failed plea negotiations, in which he said things that have made it obvious to anybody who can read how guilty these folks are.  Jeff German snarfed the docs during the two days when they were public and went to press in  the Las Vegas Review-Journal. Now defendants want to move the trial to the moon to avoid tainted public opinion.

Saturday, November 01, 2014

Lawyers in HOA scheme request trial be moved from Las Vegas | Las Vegas Review-Journal

Lawyers in HOA scheme request trial be moved from Las Vegas | Las Vegas Review-Journal

See the story immediately below for what has prompted this motion. The Review-Journal just published a bombshell of a story:



"Lawyers for defendants charged in the scheme to take over Las Vegas-area homeowners associations want the high-profile Feb. 23 trial moved out of Las Vegas. In federal court papers filed late Thursday, lawyers for Las Vegas attorney Keith Gregory said he can’t get a fair trial because of the mass of ongoing “prejudicial” media coverage of the case, primarily from the Las Vegas Review-Journal."

Journalistic Bombshell: Target of Las Vegas HOA investigation detailed scheme, bribes in secret documents | Las Vegas Review-Journal

Target of Las Vegas HOA investigation detailed scheme, bribes in secret documents | Las Vegas Review-Journal

Benzer is the alleged "mastermind" of the whole scheme. This report is explosive and Benzer's attorneys went to court to stop the Las Vegas Review-Journal from publishing it.  Read it and see how ridiculously easy it is for somebody with money to take over an HOA board.

update: I read the motion Benzer's lawyer filed and this is how the timeline unfolded:

On August 5, one of the co-defendants, Benzer's former attorney Keith Gregory, filed a motion to sever his trial from Benzer's. Then on September 16, Gregory's attorneys filed this previously-secret document in support of the motion, consisting of a report of Benzer's confidential talks with the prosecution in which he explained how the scheme worked. The plea talks fell through, and the statements can't be used against Benzer, but they are very damaging to any defendant. For example,  here is how reporter Jeff German relates some statements about Keith Gregory:
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Benzer, 47, admitted he gave his personal lawyer, Keith Gregory, a $10,000 bribe for work on the HOA takeover at the Vistana condominium complex in southwest Las Vegas. Gregory is also under indictment. Benzer recalled paying Gregory from his personal account “as a ‘thank you’ for ‘working with us.’ “When questioned as to exactly what he meant by thank you and whether the payment was more accurately described as a bribe payment, Benzer advised that the term bribe was ‘your language’ and he didn’t like to use that term, but that the answer was ‘basically yes,’ ” reads one report.
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Gregory's attorney asked the court to keep the documents under seal and mistakenly also thought that the government would agree to keeping them secret, but instead the US Attorney's office opposed keeping them secret.

So, on September 17, the court unsealed the documents. The next day, Gregory's attorneys made a motion to withdraw the documents, and asked the court to seal them.  The court agreed on September 19, and sealed and struck them from the record.

But it was too late, because during the few days when the documents were in the record of the case, Las Vegas Review-Journal reporter Jeff German obtained a copy.  German has been all over this story like a blanket.

On October 30, the defense attorneys learned that German was doing a story on the secret documents. They went to court that day and filed a motion (you can read it on the LVRJ story that I linked to--the whole motion is there) asking the court to stop the publication. A "prior restraint" on publication is almost never justified, so I don't think it would have been granted, but in any event it is too late for any court to stop the publication.  The story is out and you can read it for yourself.


Homeless women to stay in Frisco home for now after HOA loses motion | Dallas Morning News

Homeless women to stay in Frisco home for now after HOA loses motion | Dallas Morning News



"MCKINNEY — A transitional living program for homeless young women will be allowed for now to continue operating in a Frisco neighborhood. District Judge Jill Willis ruled Friday that a Frisco homeowners association failed to meet its burden for temporary injunctive relief. The PR2 Homeowners Association had sought to keep the nonprofit City House from moving more women into its home while a civil case is pending. Two women and one child live there now. The case filed by the HOA against City House continues. No trial date has been set. Chad Robinson, who represents the HOA board for the Plantation Resort 2 community, declined to comment after the ruling. He said he needed to consult with his clients. Robinson argued during Friday’s hearing that the HOA’s deed restrictions require that homes be used for single-family residential purposes only. He said single-family use means people who are related by blood or by law. Texas courts have also allowed other limited uses, such as nannies or an incidental renter. He argued that City House’s transitional living program for up to eight women was not a single-family residential use."

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So this looks like an HOA-flavored NIMBY dispute. The people who want to keep out the "undesirables" have CC&Rs to use as their legal lever.

Friday, October 31, 2014

Myrtle Beach area HOA owners complain

http://www.myrtlebeachonline.com/2014/10/30/4571043/myrtle-beach-area-hoa-complaints.html
Guess what? There was another public meeting about possible legislation at which people living in HOAs and condos complained about developers and board members making their lives miserable.
If I am reading all this correctly, they can be assured that more legislative tinkering will take place at some point in the near future.  That is all.

Thursday, October 30, 2014

Developer buys scores of Detroit's worst houses in $3.2million 'blight bundle'

http://www.dailymail.co.uk/news/article-2813166/The-blight-bundle-6-300-Detroit-s-worst-houses-real-estate-developer-just-bought-3-2million.html


"Anywhere else, a property developer who buys a bundle of foreclosed houses, abandoned factories and disused churches for a mere $500 a piece would be hailed as a genius.
But this is Detroit. And Herb Strather's $3.2million purchase of 6,350 homes is being called foolhardy.  To be sure, there are plenty of gems in the city's 'blight bundle.' A 170,00-square-foot factory that's still in good shape, a three-story brick home built in 1915 that most recently sold for $185,000, a lovely Tudor-style house that's ready to move into and a five-bedroom that simply needs a new roof.  But city officials tell the Detroit News that 2,000 of the properties are vacant lots. More than 3,000 will need to be torn down immediately...The city put strenuous rules on the buys of the 'blight bundle' requiring the buyer to either demolish and clean up all 6,350 properties within the next six months or offer a development plan. 'Now what we have to do is find out if indeed this group is serious about taking on such a task. And if they're willing to do so, we're willing to listen,' Wayne County Chief Deputy Treasurer David Szymanski told the Huffington Post. 
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And at an estimated cost of $10,000 for each demo, the development group could have to pay up to $30 million just to clear the ground--almost ten times their current investment. Is that how things will unfold, or is there a plan to cherry-pick the nicest properties and profit from them piecemeal?  The city is looking at major redevelopment, but private investors may well be thinking about making money off the good stuff.