Thursday, October 06, 2016
Wednesday, May 18, 2016
Trotwood HOA responds to liens, worn facilities | Dayton News | www.whio.com
Trotwood HOA responds to liens, worn facilities | Dayton News | www.whio.com
And here is the HOA's response to media coverage of owners withholding assessment payments because they don't think they are getting their money's worth, and then getting hit with liens:
"Not long after last week’s report, the HOA sent out an email in response. “The recent WHIO-TV broadcast orchestrated by a delinquent homeowner…will fail in its attempt to stop the collection of delinquent assessments. If you thought you could move here and change our neighborhood to be like the ghetto you came from…think again.”
And here is the HOA's response to media coverage of owners withholding assessment payments because they don't think they are getting their money's worth, and then getting hit with liens:
"Not long after last week’s report, the HOA sent out an email in response. “The recent WHIO-TV broadcast orchestrated by a delinquent homeowner…will fail in its attempt to stop the collection of delinquent assessments. If you thought you could move here and change our neighborhood to be like the ghetto you came from…think again.”
Homeowners pay thousands to illegal HOA | Fox 59
Homeowners pay thousands to illegal HOA | Fox 59
"CUMBERLAND, Ind. – For more than a decade, homeowners in a Cumberland neighborhood have been paying dues to an illegal HOA. According to state records, the Harvest Glen HOA was dissolved in 2002 because required paperwork to reinstate the organization was never completed. A few days ago, the neighborhood treasurer sent each homeowner a letter and a stack of approximately 100 pages of detailed expense reports showing how HOA dues were spent. Every year, every Harvest Glen homeowner pays $50 for HOA dues, which is mainly for lawn care upkeep in the common areas. For the past 14 years, state records show the neighborhood hasn’t had an operating HOA."
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OK, so maybe we didn't dot every "i" and cross every "t" for the last fourteen years, but basically we more or less kinda sorta did HOA-type stuff. What's your prob?
"CUMBERLAND, Ind. – For more than a decade, homeowners in a Cumberland neighborhood have been paying dues to an illegal HOA. According to state records, the Harvest Glen HOA was dissolved in 2002 because required paperwork to reinstate the organization was never completed. A few days ago, the neighborhood treasurer sent each homeowner a letter and a stack of approximately 100 pages of detailed expense reports showing how HOA dues were spent. Every year, every Harvest Glen homeowner pays $50 for HOA dues, which is mainly for lawn care upkeep in the common areas. For the past 14 years, state records show the neighborhood hasn’t had an operating HOA."
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OK, so maybe we didn't dot every "i" and cross every "t" for the last fourteen years, but basically we more or less kinda sorta did HOA-type stuff. What's your prob?
Tuesday, May 17, 2016
Woman accused of stealing from Kennesaw HOA | WAGA
Woman accused of stealing from Kennesaw HOA | WAGA: "KENNESAW, Ga. - A former Kennesaw property manager faces criminal charges.
Wendy Teresa Robinson is accused of stealing more than $8,000 from a home owners’ association fund. Police said Robinson worked as the property manager for the Legacy Park HOA at the time of the theft."
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The need for outside financial oversight of condos and HOAs becomes more obvious every day.
Wendy Teresa Robinson is accused of stealing more than $8,000 from a home owners’ association fund. Police said Robinson worked as the property manager for the Legacy Park HOA at the time of the theft."
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The need for outside financial oversight of condos and HOAs becomes more obvious every day.
Dissecting the CAI white paper manifesto on Association Governance (part 1) – Independent American Communities
Monday, May 16, 2016
Despite Their Higher Education, Millennials Still Aren't Buying Homes - CityLab
Despite Their Higher Education, Millennials Still Aren't Buying Homes - CityLab:
"A bachelor’s degree is not a requirement for homeownership, but it is starting to look like one. As household incomes are increasingly linked to educational attainment, so is homeownership status. At the same time, higher education can be a temporary barrier to homeownership. This paradox might be the driving factor of the U.S. housing market today, which is still slow to grow even despite a strong recovery"
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I've seen several studies on this. The growing income gap between college graduates and people without degrees means that graduates are more likely to be able to buy a home. But, because it takes four years to get the degree, the college graduates get married and/or enter the housing market later. The often-repeated claim that college graduates can't afford homes because of student loans doesn't stand up to empirical analysis. But part of this is on the supply side. The real estate development industry is not building many starter homes at present, in large part because of the higher lending standards that still prevail.
"A bachelor’s degree is not a requirement for homeownership, but it is starting to look like one. As household incomes are increasingly linked to educational attainment, so is homeownership status. At the same time, higher education can be a temporary barrier to homeownership. This paradox might be the driving factor of the U.S. housing market today, which is still slow to grow even despite a strong recovery"
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I've seen several studies on this. The growing income gap between college graduates and people without degrees means that graduates are more likely to be able to buy a home. But, because it takes four years to get the degree, the college graduates get married and/or enter the housing market later. The often-repeated claim that college graduates can't afford homes because of student loans doesn't stand up to empirical analysis. But part of this is on the supply side. The real estate development industry is not building many starter homes at present, in large part because of the higher lending standards that still prevail.
Sunday, May 15, 2016
Squatters See a New Frontier in the Empty Homes of Las Vegas - The New York Times
Squatters See a New Frontier in the Empty Homes of Las Vegas - The New York Times
"In Las Vegas, the crackdown against squatters coincides with a resurgence, albeit modest, in the local housing market. Foreclosures are falling and home prices are creeping upward (though they remain far short of the prerecession peak). But with a transient population of down-and-out gamblers and a glut of homes that have already been foreclosed, opportunists can still take their pick of thousands of empty houses. Inside one, squatters had scrawled a warning to stay away on a wall: “Violent tweekers on guard.”
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During the housing boom there was far too much housing built in Las Vegas. Developers were trying to take advantage of the easy credit that was available to home buyers back then. In other words, these housing units were expressly built for people who couldn't afford them. There was no real market for them then, and there is even less of a market now. So now that the cocktail waitresses and golf caddies have lost their $300,000 homes to foreclosure, there is no real buyer for these units and they sit idle. In come the squatters. This is going on in other nations as well. Spain is a great example, where Barcelona elected a socialist as mayor in part based on a proposal to legalize squatting.
Thanks to Fred Pilot for this link.
"In Las Vegas, the crackdown against squatters coincides with a resurgence, albeit modest, in the local housing market. Foreclosures are falling and home prices are creeping upward (though they remain far short of the prerecession peak). But with a transient population of down-and-out gamblers and a glut of homes that have already been foreclosed, opportunists can still take their pick of thousands of empty houses. Inside one, squatters had scrawled a warning to stay away on a wall: “Violent tweekers on guard.”
---------
During the housing boom there was far too much housing built in Las Vegas. Developers were trying to take advantage of the easy credit that was available to home buyers back then. In other words, these housing units were expressly built for people who couldn't afford them. There was no real market for them then, and there is even less of a market now. So now that the cocktail waitresses and golf caddies have lost their $300,000 homes to foreclosure, there is no real buyer for these units and they sit idle. In come the squatters. This is going on in other nations as well. Spain is a great example, where Barcelona elected a socialist as mayor in part based on a proposal to legalize squatting.
Thanks to Fred Pilot for this link.
Saturday, May 14, 2016
Happy Together - The New Yorker
Happy Together - The New Yorker
"The building, Kennedy’s new home, is run by the co-living startup Common, which offers what it calls “flexible, community-driven housing.” Co-living has also been billed as “dorms for grown-ups,” a description that Common resists. But the company has set out to restore a certain subset of young, urban professionals to the paradise they lost when they left college campuses—a furnished place to live, unlimited coffee and toilet paper, a sense of belonging."
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Sounds a bit like an episode of "Friends," and I can see the attraction of it. A lot of Americs are looking for a sense of community in a small, shared, living environment. Except for some seniors developments, I don't think many people find that in condominiums or HOAs.
"The building, Kennedy’s new home, is run by the co-living startup Common, which offers what it calls “flexible, community-driven housing.” Co-living has also been billed as “dorms for grown-ups,” a description that Common resists. But the company has set out to restore a certain subset of young, urban professionals to the paradise they lost when they left college campuses—a furnished place to live, unlimited coffee and toilet paper, a sense of belonging."
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Sounds a bit like an episode of "Friends," and I can see the attraction of it. A lot of Americs are looking for a sense of community in a small, shared, living environment. Except for some seniors developments, I don't think many people find that in condominiums or HOAs.
Friday, May 13, 2016
Legislator pushing for more oversight of homeowners associations | Local news | tucson.com
Legislator pushing for more oversight of homeowners associations | Local news | tucson.com
"Farnsworth’s bills would add regulations to the operation of HOAs. SB 1496 deals with HOA directors, stipulating that if a member of the board of directors is removed from their position, he or she cannot be reappointed to that post. It’s an issue that has been raised by homeowners. The other bill is SB 1498, which would require HOAs to provide ample warning time for homeowners before charging late fees and inform homeowners of their right to dispute the fees through a state process. HOAs would also have to maintain members’ voting records for one year. Both bills have passed the Legislature. Gov. Doug Ducey signed SB 1498 into law. The other bill has not yet been signed."
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See the post immediately below.
"Farnsworth’s bills would add regulations to the operation of HOAs. SB 1496 deals with HOA directors, stipulating that if a member of the board of directors is removed from their position, he or she cannot be reappointed to that post. It’s an issue that has been raised by homeowners. The other bill is SB 1498, which would require HOAs to provide ample warning time for homeowners before charging late fees and inform homeowners of their right to dispute the fees through a state process. HOAs would also have to maintain members’ voting records for one year. Both bills have passed the Legislature. Gov. Doug Ducey signed SB 1498 into law. The other bill has not yet been signed."
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See the post immediately below.
Former Quail Run HOA treasurer accused of grand theft - wptv.com
Former Quail Run HOA treasurer accused of grand theft - wptv.com
From Palm Beach: "A former treasurer for the Quail Run Homeowners Association has been charged with grand theft, according to the Boynton Beach Police Department. Police arrested Norman Glavas, 69, Thursday morning. Investigators say he embezzled more than $50,000 from the HOA."
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The need for transparency and oversight of HOA/condo association finances is obvious.
From Palm Beach: "A former treasurer for the Quail Run Homeowners Association has been charged with grand theft, according to the Boynton Beach Police Department. Police arrested Norman Glavas, 69, Thursday morning. Investigators say he embezzled more than $50,000 from the HOA."
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The need for transparency and oversight of HOA/condo association finances is obvious.
Thursday, May 12, 2016
HOA bans homeowners renting to sex offenders, but is it legal?
HOA bans homeowners renting to sex offenders, but is it legal?: "HOUSTON - A Fort Bend County neighborhood's homeowners association has put a ban on any homeowner renting to a registered sex offender.
Lots of families with young children live in the Kingdom Heights neighborhood. The deed restrictions established by the HOA for the quiet suburban Houston community are crystal clear -- no homeowner may lease a residence to a registered sex offender...The state's property code calls into question the HOA's deed restrictions. It was revised last year and states that HOAs can no longer be involved in the approval process of a lease agreement for prospective tenants. Essentially it says an HOA has to mind its own business."
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Once again we have an HOA attempting to do something that appears to be against the law. See below for the HOA in California that wants to violate state law concerning watering lawns in a drought.
Lots of families with young children live in the Kingdom Heights neighborhood. The deed restrictions established by the HOA for the quiet suburban Houston community are crystal clear -- no homeowner may lease a residence to a registered sex offender...The state's property code calls into question the HOA's deed restrictions. It was revised last year and states that HOAs can no longer be involved in the approval process of a lease agreement for prospective tenants. Essentially it says an HOA has to mind its own business."
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Once again we have an HOA attempting to do something that appears to be against the law. See below for the HOA in California that wants to violate state law concerning watering lawns in a drought.
Wednesday, May 11, 2016
FHFA Vows to Keep Fighting HOA Super-Priority Liens - DSNews
FHFA Vows to Keep Fighting HOA Super-Priority Liens - DSNews
"The Federal Housing Finance Agency (FHFA) has reaffirmed its support of authorized servicer reliance on the Housing and Economic Recovery Act (HERA) of 2008 in foreclosures involving homeowner associations (HOAs) and super-priority liens, saying it will “aggressively” fight any HOA that tries to extinguish a Fannie Mae or Freddie Mac lien through foreclosure.
The super-priority lien issue has been a contentious one since it came to prominence following a decision by the Nevada State Supreme Court in September 2014 that allowed HOAs to use super-priority liens to foreclose on homes with delinquent HOA dues—without the permission of the mortgagee.
The FHFA responded in December 2014 with a warning to HOAs that loans with super-priority liens attached would not push mortgages backed by Fannie Mae and Freddie Mac into the secondary position. In June 2015, a federal judge in the U.S. District Court for the District of Nevada ruled that HOAs could not foreclose non-judicially on GSE-owned mortgages using a super-priority lien.
In August 2015, FHFA stated its support of authorized servicers of GSE loans that rely on the HERA to prevent HOAs from foreclosing on loans insured by Fannie Mae and Freddie Mac. The FHFA recently reiterated its position in support of the servicers."
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It will be interesting to see if the CID industry is able to prevail over opposition from the Masters of the Universe. The banking industry and the GSEs have enormous political clout.
"The Federal Housing Finance Agency (FHFA) has reaffirmed its support of authorized servicer reliance on the Housing and Economic Recovery Act (HERA) of 2008 in foreclosures involving homeowner associations (HOAs) and super-priority liens, saying it will “aggressively” fight any HOA that tries to extinguish a Fannie Mae or Freddie Mac lien through foreclosure.
The super-priority lien issue has been a contentious one since it came to prominence following a decision by the Nevada State Supreme Court in September 2014 that allowed HOAs to use super-priority liens to foreclose on homes with delinquent HOA dues—without the permission of the mortgagee.
The FHFA responded in December 2014 with a warning to HOAs that loans with super-priority liens attached would not push mortgages backed by Fannie Mae and Freddie Mac into the secondary position. In June 2015, a federal judge in the U.S. District Court for the District of Nevada ruled that HOAs could not foreclose non-judicially on GSE-owned mortgages using a super-priority lien.
In August 2015, FHFA stated its support of authorized servicers of GSE loans that rely on the HERA to prevent HOAs from foreclosing on loans insured by Fannie Mae and Freddie Mac. The FHFA recently reiterated its position in support of the servicers."
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It will be interesting to see if the CID industry is able to prevail over opposition from the Masters of the Universe. The banking industry and the GSEs have enormous political clout.
Ducey vetoes bill that would allow developers to levy taxes on homeowners
Ducey vetoes bill that would allow developers to levy taxes on homeowners
"The governor rejected House Bill 2568, a priority of House Speaker David Gowan, citing concerns the legislation could harm taxpayers. The bill would have changed financing rules for community facilities districts, which are special taxing districts created to pay for infrastructure such as roads, sewers and water lines. Gowan, backed by a coalition of developers and investors, argued the bill would allow development to proceed more rapidly, primarily because it would have loosened some control local governments have over formation of the districts. For example, it would have mandated a district be formed upon request by landowners, and it would have given developers more control of the district's financing. Local governments pushed back, complaining the bill would minimize the oversight cities and towns provide on the tax rate needed to pay for infrastructure. Local government, controlled by elected officials, is more accountable than a board controlled by unelected developers or their designees, they said."
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These special districts are being used increasingly in Florida, Colorado, California, and other states. They give developers total control over public--not private--government entities that can issue muni bonds to pay for building infrastructure. Guess who pays back the bondholders, through property taxes? Right--the eventual home owners. And these districts are usually set up to be so undemocratic that they make HOAs look like Rousseau's peasants regulating the affairs of state under an oak tree (Jean-Jacques Rousseau, The Social Contract, Book IV, Ch. 1, if you are interested). Interestingly, most of the people who think HOAs are undemocratic and illiberal have zero to say about special districts.
"The governor rejected House Bill 2568, a priority of House Speaker David Gowan, citing concerns the legislation could harm taxpayers. The bill would have changed financing rules for community facilities districts, which are special taxing districts created to pay for infrastructure such as roads, sewers and water lines. Gowan, backed by a coalition of developers and investors, argued the bill would allow development to proceed more rapidly, primarily because it would have loosened some control local governments have over formation of the districts. For example, it would have mandated a district be formed upon request by landowners, and it would have given developers more control of the district's financing. Local governments pushed back, complaining the bill would minimize the oversight cities and towns provide on the tax rate needed to pay for infrastructure. Local government, controlled by elected officials, is more accountable than a board controlled by unelected developers or their designees, they said."
---------
These special districts are being used increasingly in Florida, Colorado, California, and other states. They give developers total control over public--not private--government entities that can issue muni bonds to pay for building infrastructure. Guess who pays back the bondholders, through property taxes? Right--the eventual home owners. And these districts are usually set up to be so undemocratic that they make HOAs look like Rousseau's peasants regulating the affairs of state under an oak tree (Jean-Jacques Rousseau, The Social Contract, Book IV, Ch. 1, if you are interested). Interestingly, most of the people who think HOAs are undemocratic and illiberal have zero to say about special districts.
Monday, May 09, 2016
Confessions of a Donald Trump Tabloid Scribe - POLITICO Magazine
Confessions of a Donald Trump Tabloid Scribe - POLITICO Magazine: "He wanted attention, but he could not control his pathological lying. Which made him, as story subjects go, a lot of work. Every statement he uttered required more than the usual amount of fact-checking. If Trump said, “Good morning,” you could be pretty sure it was five o’clock in the afternoon...I once received a tip that Trump and Richard Nixon had had a lengthy meeting in Trump’s office. Trump said he knew nothing about it. I ran the story, not only because I had an excellent source, but also because a Nixon aide confirmed it. Nixon, who was shopping for a condo the day he met with Trump, may have had issues with credibility in his time, but over Trump, I’d have believed him any day. Trump was such a pretender he even used to fake being his own spokesman, as I learned recently, though I never heard from the faux flack he called John Barron."
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We have never had a condo developer run for President before. Trump has learned the art of the big lie. When he is caught lying he just keeps right on blustering through. He has no sense of shame or guilt.
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We have never had a condo developer run for President before. Trump has learned the art of the big lie. When he is caught lying he just keeps right on blustering through. He has no sense of shame or guilt.
Saturday, May 07, 2016
Law meant to protect Wash. homeowners instead pushing up condo prices | KIRO-TV
Law meant to protect Wash. homeowners instead pushing up condo prices | KIRO-TV
SEATTLE —
In a housing market rife with new apartment complexes, there is an extremely short supply of condominiums being built and sold. Puget Sound developers point to substantial risk in building condos, due to the Washington Condo Act, a risk that does not exist for apartment development.
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What is this supposedly draconian law that developers are whining about?
It states a condo must be:
(a) Free from defective materials;
(b) Constructed in accordance with sound engineering and construction standards;
(c) Constructed in a workmanlike manner; and
(d) Constructed in compliance with all laws then applicable to such improvements.
Doesn't sound all that oppressive to me.
SEATTLE —
In a housing market rife with new apartment complexes, there is an extremely short supply of condominiums being built and sold. Puget Sound developers point to substantial risk in building condos, due to the Washington Condo Act, a risk that does not exist for apartment development.
--------
What is this supposedly draconian law that developers are whining about?
It states a condo must be:
(a) Free from defective materials;
(b) Constructed in accordance with sound engineering and construction standards;
(c) Constructed in a workmanlike manner; and
(d) Constructed in compliance with all laws then applicable to such improvements.
Doesn't sound all that oppressive to me.
The GOP's 24-hour meltdown - POLITICO
The GOP's 24-hour meltdown - POLITICO
The right wing thought that, at long last, this was going to be the year a virtuous "true conservative" made up for Goldwater's obliteration in 1964. Half a dozen of the candidates would have made them happy. Then all of them got personally humiliated and driven from the race by an unprincipled, narcissistic, quasi-fascist bully. The final blow: they are now expected to support him. No wonder they are...unhappy.
It will be interesting to see how far the American Mussolini's cult of personality can take him. His followers are so swept away by his empty promises to make everything "great," with "so much winning," that they have lost all capacity for critical thought.
The right wing thought that, at long last, this was going to be the year a virtuous "true conservative" made up for Goldwater's obliteration in 1964. Half a dozen of the candidates would have made them happy. Then all of them got personally humiliated and driven from the race by an unprincipled, narcissistic, quasi-fascist bully. The final blow: they are now expected to support him. No wonder they are...unhappy.
It will be interesting to see how far the American Mussolini's cult of personality can take him. His followers are so swept away by his empty promises to make everything "great," with "so much winning," that they have lost all capacity for critical thought.
Thursday, May 05, 2016
Sperlonga, Equifax to record HOA payments for credit scores | 2016-05-04 | HousingWire
Sperlonga, Equifax to record HOA payments for credit scores | 2016-05-04 | HousingWire:
"Sperlonga will use its technology to automatically extract assessment payment data and account status every month for all HOA property owners, according to a release. It will then report the account data to Equifax.
"We believe this will have a major impact on the HOA industry," Sperlonga CEO Dan Berman said. "According to the Community Association Institute, associations along with property management companies collect approximately $70 billion in assessment payments each year and CAI estimated there were at least 333,000 community associations in the U.S.""
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Nobody knows how much HOAs and condo associations collect because government has washed its hands of any responsibility for this massive privatization of services and infrastructure. But in any event, now people who fall delinquent on their HOA assessments will have a problem with their credit rating.
"Sperlonga will use its technology to automatically extract assessment payment data and account status every month for all HOA property owners, according to a release. It will then report the account data to Equifax.
"We believe this will have a major impact on the HOA industry," Sperlonga CEO Dan Berman said. "According to the Community Association Institute, associations along with property management companies collect approximately $70 billion in assessment payments each year and CAI estimated there were at least 333,000 community associations in the U.S.""
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Nobody knows how much HOAs and condo associations collect because government has washed its hands of any responsibility for this massive privatization of services and infrastructure. But in any event, now people who fall delinquent on their HOA assessments will have a problem with their credit rating.
Man admits stealing $2.5M from homeowner associations - The Washington Post
Man admits stealing $2.5M from homeowner associations - The Washington Post:
"BALTIMORE — A man who prosecutors say financed a lifestyle of nightclubbing, NBA games, manicures and limousines by stealing $2.5 million from his clients has pleaded guilty to wire fraud.
The U.S. Attorney’s Office said in a news release that 39-year-old William Francis of Elkridge entered the plea Wednesday in federal court in Baltimore.
Prosecutors say Francis owned two companies which managed HOA reserve funds, which were typically held in savings or money market accounts.
According to his plea agreement, Francis defrauded at least 51 of his company’s HOA clients by taking reserve funds.
Prosecutors say Francis spent the money on Washington Wizards games; adult entertainment venues and nightclubs; dog grooming services; a nail salon, and a limousine service.
Francis faces a maximum of 20 years in prison at sentencing Sept. 13."
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Yet another embezzlement from HOA reserve accounts. When will state legislators understand that there has to be oversight of HOA/condo finances?
Thanks to Shu for this link.
"BALTIMORE — A man who prosecutors say financed a lifestyle of nightclubbing, NBA games, manicures and limousines by stealing $2.5 million from his clients has pleaded guilty to wire fraud.
The U.S. Attorney’s Office said in a news release that 39-year-old William Francis of Elkridge entered the plea Wednesday in federal court in Baltimore.
Prosecutors say Francis owned two companies which managed HOA reserve funds, which were typically held in savings or money market accounts.
According to his plea agreement, Francis defrauded at least 51 of his company’s HOA clients by taking reserve funds.
Prosecutors say Francis spent the money on Washington Wizards games; adult entertainment venues and nightclubs; dog grooming services; a nail salon, and a limousine service.
Francis faces a maximum of 20 years in prison at sentencing Sept. 13."
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Yet another embezzlement from HOA reserve accounts. When will state legislators understand that there has to be oversight of HOA/condo finances?
Thanks to Shu for this link.
Wednesday, May 04, 2016
Bill would grant tax deduction for homeowners association assessments - Chicago Tribune
Bill would grant tax deduction for homeowners association assessments - Chicago Tribune:
"The same residents also pay local property taxes to municipal, county or state governments. But unlike other homeowners, only their local property tax levies are deductible on federal tax filings. Their community association assessments that pay for government-type services are not. Now a bipartisan group of congressional representatives thinks that's inequitable and needs to be corrected. Under a new bill known as the HOME Act (H.R. 4696), millions of people who live in communities run by associations would get the right to deduct up to $5,000 a year of assessments on federal tax filings, with some important limitations:
• Deductions would phase out if their incomes exceed $115,000 for single filers, $150,000 in the case of joint returns.
• The property would have to be their principal residence, not a vacation or rental home.
• To qualify for write-offs, the assessments would have to be "regularly occurring," mandatory levies that directly benefit taxpayers' properties and that exist solely because of their automatic membership in the homeowners association.
The bill's primary author is Rep. Anna G. Eshoo, D-Calif. Co-sponsors include Reps. Mike Thompson, D-Calif., and Barbara Comstock, R-Va.. Though the bill has little chance of moving through the House or Senate during this election year, it sends a message to the legislative committees now working on possible tax code changes for next year: Congress needs to acknowledge the role the country's community associations play in providing municipal-type services. The way to do it is to allow deductions on a capped amount of the money residents are required to pay to support community services."
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The bill has industry support. I would be surprised if this passed, because it would cost billions of dollars in lost income tax revenues, but it it interesting to see bipartisan support for the idea. Here is link to the text of the bill.
"The same residents also pay local property taxes to municipal, county or state governments. But unlike other homeowners, only their local property tax levies are deductible on federal tax filings. Their community association assessments that pay for government-type services are not. Now a bipartisan group of congressional representatives thinks that's inequitable and needs to be corrected. Under a new bill known as the HOME Act (H.R. 4696), millions of people who live in communities run by associations would get the right to deduct up to $5,000 a year of assessments on federal tax filings, with some important limitations:
• Deductions would phase out if their incomes exceed $115,000 for single filers, $150,000 in the case of joint returns.
• The property would have to be their principal residence, not a vacation or rental home.
• To qualify for write-offs, the assessments would have to be "regularly occurring," mandatory levies that directly benefit taxpayers' properties and that exist solely because of their automatic membership in the homeowners association.
The bill's primary author is Rep. Anna G. Eshoo, D-Calif. Co-sponsors include Reps. Mike Thompson, D-Calif., and Barbara Comstock, R-Va.. Though the bill has little chance of moving through the House or Senate during this election year, it sends a message to the legislative committees now working on possible tax code changes for next year: Congress needs to acknowledge the role the country's community associations play in providing municipal-type services. The way to do it is to allow deductions on a capped amount of the money residents are required to pay to support community services."
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The bill has industry support. I would be surprised if this passed, because it would cost billions of dollars in lost income tax revenues, but it it interesting to see bipartisan support for the idea. Here is link to the text of the bill.
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