Michigan governor admits his prison food privatization scheme has failed – ThinkProgress
Michigan voters elected this anti-government dunce. Ask people in Flint how that worked out for them. Now he has deprivatized the prison food service because privatization was such a disaster.
Friday, February 09, 2018
Fake homeowners association files real liens on Northland neighborhood after fake bills go unpaid | FOX 4 Kansas City WDAF-TV | News, Weather, Sports
Fake homeowners association files real liens on Northland neighborhood after fake bills go unpaid | FOX 4 Kansas City WDAF-TV | News, Weather, Sports
"KANSAS CITY, Mo. -- For years, people living in a quiet neighborhood in the Northland ignored the invoices that arrived in their mail demanding payment to a homeowners association. “Just want to let you know it's a scam,” Tony Navarro said he was told when he moved to the Summerfield subdivision. “This is not an HOA neighborhood at all. There are no monthly fees.” But then, just before Christmas, a $445 lien was filed against Navarro’s home and more than 30 others. The reason? For not paying dues to the Summerfield Homeowners Association. An HOA that has no board and provides no services...We tried to talk to Lovell, but she wouldn’t even open the door of her home. Speaking behind a window, she told us she had no comment. Later Lovell’s attorney wrote to FOX4 that Lovell thought the neighborhood should have an HOA to pay for the upkeep of the lot containing the neighborhood’s drainage basin. FOX4 Problem Solvers found it surprising that Lovell cared since she lives in Independence -- far from the Summerfield neighborhood. We also wanted to speak to the other person behind the fake Summerfiled HOA, but he was even harder to reach. Al Roberts is in federal prison, convicted of $3 million in mortgage fraud. "
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With local and state governments taking no responsibility for the conduct of CID private governments, there is all kinds of room for people to move into that vacuum. Fraud, embezzlement, association takeover, financial mismanagement--these things could be made less frequent with proper oversight.
"KANSAS CITY, Mo. -- For years, people living in a quiet neighborhood in the Northland ignored the invoices that arrived in their mail demanding payment to a homeowners association. “Just want to let you know it's a scam,” Tony Navarro said he was told when he moved to the Summerfield subdivision. “This is not an HOA neighborhood at all. There are no monthly fees.” But then, just before Christmas, a $445 lien was filed against Navarro’s home and more than 30 others. The reason? For not paying dues to the Summerfield Homeowners Association. An HOA that has no board and provides no services...We tried to talk to Lovell, but she wouldn’t even open the door of her home. Speaking behind a window, she told us she had no comment. Later Lovell’s attorney wrote to FOX4 that Lovell thought the neighborhood should have an HOA to pay for the upkeep of the lot containing the neighborhood’s drainage basin. FOX4 Problem Solvers found it surprising that Lovell cared since she lives in Independence -- far from the Summerfield neighborhood. We also wanted to speak to the other person behind the fake Summerfiled HOA, but he was even harder to reach. Al Roberts is in federal prison, convicted of $3 million in mortgage fraud. "
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With local and state governments taking no responsibility for the conduct of CID private governments, there is all kinds of room for people to move into that vacuum. Fraud, embezzlement, association takeover, financial mismanagement--these things could be made less frequent with proper oversight.
Neighbors owe HOA thousands after missed payment - ABC15 Arizona
Neighbors owe HOA thousands after missed payment - ABC15 Arizona
"Scottsdale - Neighbors Ted Koch and Chad Lakridis don't know each other, but both have the same story. They live in the Desert Ridge Community Association which they both say is unfairly billing them thousands of dollars because of a $15 late fee."
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"Scottsdale - Neighbors Ted Koch and Chad Lakridis don't know each other, but both have the same story. They live in the Desert Ridge Community Association which they both say is unfairly billing them thousands of dollars because of a $15 late fee."
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The Michigan town where only Christians are allowed to buy houses | US news | The Guardian
The Michigan town where only Christians are allowed to buy houses | US news | The Guardian
"The Christian exclusionary component was introduced in the 1940s. This was a time of heightened racial anxiety and antisemitism in the US, with swaths of Jewish refugees denied asylum from Europe – an act supported by a majority of the American public. The Christian-only clause was introduced together with a white-only clause, which the association eliminated the following decade. Catholics were given a 10% quota, which was eventually dropped. Over the years, however, the Christian-only requirement was, if anything, reinforced. The lawsuit charges that Bay View Association, although private (some private entities including gentlemen’s clubs or the Boy Scouts, for example, historically have been able to discriminate), acts in effect as a governmental entity, endowed with the powers to police and enforce laws. As such, the lawsuit claims, it is engaging in religious discrimination in violation of the US and Michigan constitutions, Michigan’s civil rights act and the Fair Housing Act. Mike Steinberg, the legal director of the American Civil Liberties Union of Michigan, believes the lawsuit is an “open-and-shut case”.
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Interesting case that raises the question of whether and under what circumstances a private organization should be treated as if it were a government. I will be following this.
"The Christian exclusionary component was introduced in the 1940s. This was a time of heightened racial anxiety and antisemitism in the US, with swaths of Jewish refugees denied asylum from Europe – an act supported by a majority of the American public. The Christian-only clause was introduced together with a white-only clause, which the association eliminated the following decade. Catholics were given a 10% quota, which was eventually dropped. Over the years, however, the Christian-only requirement was, if anything, reinforced. The lawsuit charges that Bay View Association, although private (some private entities including gentlemen’s clubs or the Boy Scouts, for example, historically have been able to discriminate), acts in effect as a governmental entity, endowed with the powers to police and enforce laws. As such, the lawsuit claims, it is engaging in religious discrimination in violation of the US and Michigan constitutions, Michigan’s civil rights act and the Fair Housing Act. Mike Steinberg, the legal director of the American Civil Liberties Union of Michigan, believes the lawsuit is an “open-and-shut case”.
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Interesting case that raises the question of whether and under what circumstances a private organization should be treated as if it were a government. I will be following this.
Thursday, February 08, 2018
The biggest privatisation you’ve never heard of: land | Brett Christophers | Opinion | The Guardian
The biggest privatisation you’ve never heard of: land | Brett Christophers | Opinion | The Guardian:
"All told, around 2 million hectares of public land have been privatised during the past four decades. This amounts to an eye-watering 10% of the entire British land mass, and about half of all the land that was owned by public bodies when Thatcher assumed power. How much is the land that has been privatised in Britain worth? It is impossible to say for sure. But my conservative estimate, explained in my forthcoming book on this historic privatisation, called The New Enclosure, is somewhere in the region of £400bn in today’s prices. This dwarfs the value of all of Britain’s other, better known, and often bitterly contested, privatisations."
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And what did we do here in the US? We quietly privatized a vast array of local government services, and effectively privatized the land, where CIDs are located.
"All told, around 2 million hectares of public land have been privatised during the past four decades. This amounts to an eye-watering 10% of the entire British land mass, and about half of all the land that was owned by public bodies when Thatcher assumed power. How much is the land that has been privatised in Britain worth? It is impossible to say for sure. But my conservative estimate, explained in my forthcoming book on this historic privatisation, called The New Enclosure, is somewhere in the region of £400bn in today’s prices. This dwarfs the value of all of Britain’s other, better known, and often bitterly contested, privatisations."
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And what did we do here in the US? We quietly privatized a vast array of local government services, and effectively privatized the land, where CIDs are located.
Monday, February 05, 2018
When a Co-op Board Misbehaves - The New York Times
When a Co-op Board Misbehaves - The New York Times: "Ms. Liang and other shareholders have learned through their efforts that because there is no agency responsible for regulating co-op and condo board behavior, there is little recourse for shareholders if they believe a board is misbehaving, other than to take on the significant expense and time required to file a lawsuit."
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People keep discovering this for the first time.
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People keep discovering this for the first time.
Friday, February 02, 2018
Insurance Law Report: January 2018 - Phelps Dunbar LLP
Insurance Law Report: January 2018 - Phelps Dunbar LLP:
Thanks to Fred Pilot for this link. He notes that it seems like the condo construction defect suit will always be with us. Why are there so many of these suits? I would say it flows from the dynamics and incentives of the real estate development industry.
1.The developers and general contractors all want to maximize profits, which means they all want to minimize costs. So there is always a temptation to cut corners on materials and workmanship. The same goes for the subcontractors in all the trades. Not everybody does this to the same degree, but that practice increases the risk of defects in original construction.
2. And then a great deal of the housing stock is, by definition, constructed during boom periods, when the supply of skilled labor is exhausted in the places where the most housing is going up. Relatively unskilled and inexperienced workers can find work easily.
3. Many of the people who build condos are thinking in terms of immediate profits from quick sales. Contrast this with somebody who builds an apartment complex and intends to draw income from it long-term.
4. There are condos at various ends of the price spectrum. The higher you go, the greater the expectation of quality. During the last housing boom, when the financing was so easy to get, there was a lot of condo housing constructed for people of low to moderate income. Some of that wasn't particularly well-built.
Thanks to Fred Pilot for this link. He notes that it seems like the condo construction defect suit will always be with us. Why are there so many of these suits? I would say it flows from the dynamics and incentives of the real estate development industry.
1.The developers and general contractors all want to maximize profits, which means they all want to minimize costs. So there is always a temptation to cut corners on materials and workmanship. The same goes for the subcontractors in all the trades. Not everybody does this to the same degree, but that practice increases the risk of defects in original construction.
2. And then a great deal of the housing stock is, by definition, constructed during boom periods, when the supply of skilled labor is exhausted in the places where the most housing is going up. Relatively unskilled and inexperienced workers can find work easily.
3. Many of the people who build condos are thinking in terms of immediate profits from quick sales. Contrast this with somebody who builds an apartment complex and intends to draw income from it long-term.
4. There are condos at various ends of the price spectrum. The higher you go, the greater the expectation of quality. During the last housing boom, when the financing was so easy to get, there was a lot of condo housing constructed for people of low to moderate income. Some of that wasn't particularly well-built.
Wednesday, January 31, 2018
Monday, January 29, 2018
Is it all in the eye of the beholder? Benefits of living in mixed-income neighborhoods in New York and Los Angeles. – JUA Blog
Is it all in the eye of the beholder? Benefits of living in mixed-income neighborhoods in New York and Los Angeles. – JUA Blog
This is a blog post that summarizes an article in the Journal of Urban Affairs by my friend Renaud LeGoix, Elena Vesselinov, and Mary Clare Lennon. The article looks at mixed income neighborhoods and examines what they do and don't accomplish for their residents.
"In this article, we discuss the differences between “design-politics” and “organic” mixed-income neighborhoods. Design-politics neighborhoods are communities influenced by the federal housing policies in integrating former public housing residents with higher income groups. It is believed that such income integration will be beneficial to lower-income groups, where through better housing conditions and role-modeling they will create better lives. The question is do policy intentions correspond to reality, thus the title of the paper, “Is it all in the eye of the beholder?” Is this policy a wishful thinking or a reality?"
The full article is available free at this link.
This is a blog post that summarizes an article in the Journal of Urban Affairs by my friend Renaud LeGoix, Elena Vesselinov, and Mary Clare Lennon. The article looks at mixed income neighborhoods and examines what they do and don't accomplish for their residents.
"In this article, we discuss the differences between “design-politics” and “organic” mixed-income neighborhoods. Design-politics neighborhoods are communities influenced by the federal housing policies in integrating former public housing residents with higher income groups. It is believed that such income integration will be beneficial to lower-income groups, where through better housing conditions and role-modeling they will create better lives. The question is do policy intentions correspond to reality, thus the title of the paper, “Is it all in the eye of the beholder?” Is this policy a wishful thinking or a reality?"
The full article is available free at this link.
Saturday, January 20, 2018
"Privatization Is Bad," says British writer
Privatization Is Bad
"One of Britain’s largest government contractors, Carillion, announced bankruptcy on Tuesday, leaving its 20,000 UK employees unsure of their future and causing layoffs at its subcontractor. The company was £1.5 billion in debt. Whoops! The company is woven into basically every part of the public sector in Britain, from school meals and hospital cleaning to housing for the military."
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This article explains how the era of privatization brought about government dependency on private contractors, so that if and when a major contractor fails, government doesn't have the staff or the expertise to take over from the contractor. I see the same problem in the US. What happens when cities take a cash payment for a major public asset, such as a bridge or highway, and then the new owner or lessee goes bankrupt? That can also be a strategic bankruptcy, where the corporation doesn't want to put money into an asset to rehab it and decides instead to move their money elsewhere and liquidate the entity that owns or leases the asset. Or when the city happily lays off a lot of employees because they contracted out the public school food service, or he janitorial service, or the teaching, if the contractors don't get the job done? Or if they don't turn enough of a profit and just go out of business? The problem is that before privatization we could be sure that government would continue doing these things, and it doesn't matter whether those activities are profitable or not. After privatization, we don't know that. On the contrary, we know that private corporations do things only as long as they are making a profit. This is where all this nonsense about making government operate like a business comes back to bite us. Governments do things that, by definition, don't turn a profit. When we turn those things over to private corporations, we run the risk that the corporations will bail out on us, and then government has lost the ability to pick up the function without a lot of lost time and extra expense.
And, as this article notes, that profit-seeking creates other problems. Bizarrely, governments end up paying private vendors extra money because of guarantees that are written into their contracts. This has been a huge problem with the Chicago parking meter privatization fiasco. It happened in the UK, too: "This is what happens when you outsource what should be government services, and particularly when you outsource so much to one company: you introduce the likelihood of a whole new kind of total fucking disaster, where the terrible, risky, profit-driven practices that characterize the private sector get mixed in with services that absolutely should not be subjected to that kind of risk, like schools and hospitals. Introducing a profit element to public services can only end in corner-cutting, under-providing and over-charging, and spending more than you would if the government just did it themselves. You end up with a ridiculous situation, where, for instance, Britain’s public health service, which is already underfunded, pays an £82 million settlement to a private company who sued because they didn’t win a contract."
"One of Britain’s largest government contractors, Carillion, announced bankruptcy on Tuesday, leaving its 20,000 UK employees unsure of their future and causing layoffs at its subcontractor. The company was £1.5 billion in debt. Whoops! The company is woven into basically every part of the public sector in Britain, from school meals and hospital cleaning to housing for the military."
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This article explains how the era of privatization brought about government dependency on private contractors, so that if and when a major contractor fails, government doesn't have the staff or the expertise to take over from the contractor. I see the same problem in the US. What happens when cities take a cash payment for a major public asset, such as a bridge or highway, and then the new owner or lessee goes bankrupt? That can also be a strategic bankruptcy, where the corporation doesn't want to put money into an asset to rehab it and decides instead to move their money elsewhere and liquidate the entity that owns or leases the asset. Or when the city happily lays off a lot of employees because they contracted out the public school food service, or he janitorial service, or the teaching, if the contractors don't get the job done? Or if they don't turn enough of a profit and just go out of business? The problem is that before privatization we could be sure that government would continue doing these things, and it doesn't matter whether those activities are profitable or not. After privatization, we don't know that. On the contrary, we know that private corporations do things only as long as they are making a profit. This is where all this nonsense about making government operate like a business comes back to bite us. Governments do things that, by definition, don't turn a profit. When we turn those things over to private corporations, we run the risk that the corporations will bail out on us, and then government has lost the ability to pick up the function without a lot of lost time and extra expense.
And, as this article notes, that profit-seeking creates other problems. Bizarrely, governments end up paying private vendors extra money because of guarantees that are written into their contracts. This has been a huge problem with the Chicago parking meter privatization fiasco. It happened in the UK, too: "This is what happens when you outsource what should be government services, and particularly when you outsource so much to one company: you introduce the likelihood of a whole new kind of total fucking disaster, where the terrible, risky, profit-driven practices that characterize the private sector get mixed in with services that absolutely should not be subjected to that kind of risk, like schools and hospitals. Introducing a profit element to public services can only end in corner-cutting, under-providing and over-charging, and spending more than you would if the government just did it themselves. You end up with a ridiculous situation, where, for instance, Britain’s public health service, which is already underfunded, pays an £82 million settlement to a private company who sued because they didn’t win a contract."
Friday, January 19, 2018
Money man: U.S. billionaire Robert Mercer helped Trump win the presidency — but what does he really want?
Money man: U.S. billionaire Robert Mercer helped Trump win the presidency — but what does he really want?: "“The ultra-wealthy of today differ from the ultra-wealthy in past eras in that they have, a lot of them, no stake in the infrastructure of society,” Magerman said. He’s seen that their wealth does not depend on the health and stability of the country. In fact, they get rich on volatility and instability."
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This is one of the main arguments I made in my first book on the rise of private communities. The rich now have their own parallel state of private institutions, and that's where they live, and many of them are like Mercer--they believe that they don't need public government, and everybody who isn't rich is a parasite. They believe that government is just a way for the parasitic many to steal from the productive few. The notion that ordinary people are working their butts off to generate surplus value for the Mercers of the world is lost on them.
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This is one of the main arguments I made in my first book on the rise of private communities. The rich now have their own parallel state of private institutions, and that's where they live, and many of them are like Mercer--they believe that they don't need public government, and everybody who isn't rich is a parasite. They believe that government is just a way for the parasitic many to steal from the productive few. The notion that ordinary people are working their butts off to generate surplus value for the Mercers of the world is lost on them.
Gated communities stepping up security after violent trail of crime alleged on Spring murder suspects | abc13.com
Gated communities stepping up security after violent trail of crime alleged on Spring murder suspects | abc13.com
SPRING, Texas (KTRK) -- Gated communities are increasing security after two violent home invasions and one that ended in the murders of a beloved Spring couple. Jenny and Bao Lam, both 61, were ambushed in their garage in the Northgate Forest subdivision last week. The three suspects - Khari Kendrick, Aakiel Kendrick and Erick Peralta - then robbed, tortured and shot them to death, according to Harris County Sheriff's investigators. All three have been charged with capital murder. Two days earlier, authorities believe they were in the Champion Lakes Estates community near Tomball...One suspect got into the neighborhood, despite the front gate, on foot. He then looked for an open garage door and caught the male victim off guard. Once inside, he forced the victim to give him the gate code to get his alleged accomplices and their car inside."
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Horrible story. It shows how little security is provided in many gated communities. Gates along don't do much to protect residents from people who are determined to get in.
SPRING, Texas (KTRK) -- Gated communities are increasing security after two violent home invasions and one that ended in the murders of a beloved Spring couple. Jenny and Bao Lam, both 61, were ambushed in their garage in the Northgate Forest subdivision last week. The three suspects - Khari Kendrick, Aakiel Kendrick and Erick Peralta - then robbed, tortured and shot them to death, according to Harris County Sheriff's investigators. All three have been charged with capital murder. Two days earlier, authorities believe they were in the Champion Lakes Estates community near Tomball...One suspect got into the neighborhood, despite the front gate, on foot. He then looked for an open garage door and caught the male victim off guard. Once inside, he forced the victim to give him the gate code to get his alleged accomplices and their car inside."
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Horrible story. It shows how little security is provided in many gated communities. Gates along don't do much to protect residents from people who are determined to get in.
Thursday, January 18, 2018
Amazon shortlists 20 cities for second headquarters | Technology | The Guardian
Amazon shortlists 20 cities for second headquarters | Technology | The Guardian:
Chicago is on the short list. But it is embarrassing to see how some of these cities prostrated themselves before the great God Amazon: "Amazon has claimed its new $5bn headquarters will create 50,000 new jobs and the prospect of securing its favour set off an aggressive charm offensive with cities offering huge tax breaks and even sending gifts, including a giant cactus, to attract the company’s attention. Calgary in Canada offered to change its name to Calmazon or Amagary if it won and a local business group offered to fight a bear to win Amazon’s approval. It did not make the list."
Chicago is on the short list. But it is embarrassing to see how some of these cities prostrated themselves before the great God Amazon: "Amazon has claimed its new $5bn headquarters will create 50,000 new jobs and the prospect of securing its favour set off an aggressive charm offensive with cities offering huge tax breaks and even sending gifts, including a giant cactus, to attract the company’s attention. Calgary in Canada offered to change its name to Calmazon or Amagary if it won and a local business group offered to fight a bear to win Amazon’s approval. It did not make the list."
The Privatization Agenda Goes Bust
The Privatization Agenda Goes Bust: "The collapse of Carillion, the mammoth UK government contractor that went bankrupt Monday, was wholly made in Britain, although it has negative consequences internationally.
The reason for Carillion’s bankruptcy, which puts vital public services and thousands of jobs at risk, is that the firm and its component companies grew fat during the first phase of neoliberal economic policy and could not cope with the more recent phase, austerity."
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The record of privatization, after close to 40 years of evaluation, is mixed at best, but it has been profitable for contractors. However, most of those studies are from the pre-2008 era. This article suggests that in the post-2008 environment, austerity policies have put government on a starvation diet. If government doesn't have the money to pay for construction and repair of infrastructure and provision of services, then firms that want to perform those tasks on a privatized contractual basis are in trouble.
The reason for Carillion’s bankruptcy, which puts vital public services and thousands of jobs at risk, is that the firm and its component companies grew fat during the first phase of neoliberal economic policy and could not cope with the more recent phase, austerity."
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The record of privatization, after close to 40 years of evaluation, is mixed at best, but it has been profitable for contractors. However, most of those studies are from the pre-2008 era. This article suggests that in the post-2008 environment, austerity policies have put government on a starvation diet. If government doesn't have the money to pay for construction and repair of infrastructure and provision of services, then firms that want to perform those tasks on a privatized contractual basis are in trouble.
San Rafael condo owners hit with $145,000 special assessment
San Rafael condo owners hit with $145,000 special assessment
"Members of the 36-unit Pinnacle Condominium Association in San Rafael have approved a special assessment that will result in each condo owner having to pay $145,000 to fund a $5.22 million exterior repair project. “That is a major special assessment for a building this size,” said Marjorie Murray, president of the Center for California Homeowner Association Law in Oakland, a clearinghouse for consumer education and referral services for the estimated 9 million California homeowners who now live in a common interest development."
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This is a long and detailed article about a terrible situation in an old development, built in 1980, that now needs new siding and roof decks. The assessment received 18 "yes" votes. The problem here is that no condo development, no HOA, should ever find itself in the situation of needing a massive special assessment to fund repairs for major building components that have just worn out over time. Boards are supposed to make sure that monthly assessments over decades include enough of a contribution to reserve funds that, when the time comes for a new roof or siding or decks, it is affordable without a six-figure special assessment. As Marjorie Murray, president of the Center for California Homeowner Association Law, put it, “Homeowner associations are required by law to do reserve studies every three years to determine how much they should be saving for capital items like roofs and building infrastructure,” Murray said. “The idea is that boards should plan ahead and save in reserves so that special assessments aren’t necessary.”
And there are reserves, to the tune of $800,000. That won't fund a $5 million repair, but Marjorie also questions why the association has decided to use only $300,000 of their reserves.
There are other questions raised in the article, such as whether this repair plan is the only way to go, and whether the association should get more opinions and try to reduce the cost. But it still comes down to the fact that the reserves are too low to pay for repairs to an old building, and the unwillingness of today's owners to reserve enough money now to pay for future repairs that will benefit future owners. Attorney Tyler Berding has been talking about this problem forever. I have been saying for years that condominium housing demands more from the financial and social resources of owners than many, even most, of them are prepared to deliver. Here you have Exhibit A. In order for this form of housing to function in the long term, and to avoid catastrophic special assessments that drive people into debt or out of their homes, there needs to be government financial oversight of all condominium associations. Stricter reserve study requirements, agency oversight, and mandatory public disclosure of reserve funding levels need to be considered.
"Members of the 36-unit Pinnacle Condominium Association in San Rafael have approved a special assessment that will result in each condo owner having to pay $145,000 to fund a $5.22 million exterior repair project. “That is a major special assessment for a building this size,” said Marjorie Murray, president of the Center for California Homeowner Association Law in Oakland, a clearinghouse for consumer education and referral services for the estimated 9 million California homeowners who now live in a common interest development."
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This is a long and detailed article about a terrible situation in an old development, built in 1980, that now needs new siding and roof decks. The assessment received 18 "yes" votes. The problem here is that no condo development, no HOA, should ever find itself in the situation of needing a massive special assessment to fund repairs for major building components that have just worn out over time. Boards are supposed to make sure that monthly assessments over decades include enough of a contribution to reserve funds that, when the time comes for a new roof or siding or decks, it is affordable without a six-figure special assessment. As Marjorie Murray, president of the Center for California Homeowner Association Law, put it, “Homeowner associations are required by law to do reserve studies every three years to determine how much they should be saving for capital items like roofs and building infrastructure,” Murray said. “The idea is that boards should plan ahead and save in reserves so that special assessments aren’t necessary.”
And there are reserves, to the tune of $800,000. That won't fund a $5 million repair, but Marjorie also questions why the association has decided to use only $300,000 of their reserves.
There are other questions raised in the article, such as whether this repair plan is the only way to go, and whether the association should get more opinions and try to reduce the cost. But it still comes down to the fact that the reserves are too low to pay for repairs to an old building, and the unwillingness of today's owners to reserve enough money now to pay for future repairs that will benefit future owners. Attorney Tyler Berding has been talking about this problem forever. I have been saying for years that condominium housing demands more from the financial and social resources of owners than many, even most, of them are prepared to deliver. Here you have Exhibit A. In order for this form of housing to function in the long term, and to avoid catastrophic special assessments that drive people into debt or out of their homes, there needs to be government financial oversight of all condominium associations. Stricter reserve study requirements, agency oversight, and mandatory public disclosure of reserve funding levels need to be considered.
Wednesday, January 17, 2018
Rent or own? The affordability conundrum
Rent or own? The affordability conundrum: "ATTOM Data Solutions reports that 64 percent of Americans now live in places — mostly big metro areas on the East and West coasts — where it is more affordable to rent than own. That means the monthly cost of a mortgage, mortgage interest, insurance and property taxes on a median-priced home in the area will eat up a larger percentage of the average monthly wage there than paying rent on a typical three-bedroom apartment."
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It isn't just the the cities on both coasts. The same is true of Chicago, as well as Las Vegas, Salt Lake City, Phoenix, Denver, and Austin. The reason is that in all these places, housing prices have inflated.
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It isn't just the the cities on both coasts. The same is true of Chicago, as well as Las Vegas, Salt Lake City, Phoenix, Denver, and Austin. The reason is that in all these places, housing prices have inflated.
The Rise of the Backyard 'Granny Flat' - CityLab
The Rise of the Backyard 'Granny Flat' - CityLab
Yet another good idea that HOAs probably won't allow.
Yet another good idea that HOAs probably won't allow.
Tuesday, January 16, 2018
Can Government Officials Have You Arrested for Speaking to Them? - The Atlantic
Can Government Officials Have You Arrested for Speaking to Them? - The Atlantic
The US Supreme Court has this issue before them. HOA and condo board members aren't government officials, but it will be interesting to watch this case.
The US Supreme Court has this issue before them. HOA and condo board members aren't government officials, but it will be interesting to watch this case.
It's Becoming Increasingly Hard For California Homeowners To Get Insurance : NPR
It's Becoming Increasingly Hard For California Homeowners To Get Insurance : NPR
"Insurance companies are increasingly dropping homeowners in California because of wildfire risk. There's concern the problem will grow worse after this year's destructive fire season."
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Insurance companies have freaked out about property insurance risks in California in years past. Fires, floods, 100-year storms, landslides earthquakes--these events are hard to build into their premium calculations. But homeowners need property insurance, so we shall see what the state legislature has to say about this.
"Insurance companies are increasingly dropping homeowners in California because of wildfire risk. There's concern the problem will grow worse after this year's destructive fire season."
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Insurance companies have freaked out about property insurance risks in California in years past. Fires, floods, 100-year storms, landslides earthquakes--these events are hard to build into their premium calculations. But homeowners need property insurance, so we shall see what the state legislature has to say about this.
Monday, January 15, 2018
Trump's Infrastructure Plan Is Actually Pence's—And It's All About Privatization
Trump's Infrastructure Plan Is Actually Pence's—And It's All About Privatization
"Pence and his allies like to boast about how Indiana sold control of major roads to private firms, claiming the move prompted corporations to invest money in infrastructure that would otherwise have been funded by taxpayers. But opponents say Indiana made some bad deals that offer a cautionary tale of get-rich-quick scheming, secrecy and cronyism that led the state to sell off valuable assets that were then wildly mismanaged."
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This "plan" probably will not lead to construction or maintenance of essential public infrastructure. It is more likely to foster a series of boondoggles in which state and local governments sell off valuable public assets--highways, bridges, etc.--to corporations that will strip them of their value for quick profits
"Pence and his allies like to boast about how Indiana sold control of major roads to private firms, claiming the move prompted corporations to invest money in infrastructure that would otherwise have been funded by taxpayers. But opponents say Indiana made some bad deals that offer a cautionary tale of get-rich-quick scheming, secrecy and cronyism that led the state to sell off valuable assets that were then wildly mismanaged."
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This "plan" probably will not lead to construction or maintenance of essential public infrastructure. It is more likely to foster a series of boondoggles in which state and local governments sell off valuable public assets--highways, bridges, etc.--to corporations that will strip them of their value for quick profits
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