The price of order: Pros and cons of homeowners associations
About 15 percent of housing developments in Berks have some form of homeowners association, said Glenn R. Knoblauch, executive director of the county planning commission. The biggest growth in planned communities with associations is in communities that will accept only residents age 55 and older.
In most cases the rules and regulations do preserve order, said Tom Campisi, executive director of the Community Association Institute of Pennsylvania, an industry group that advocates for such associations.
"You don't want your neighbors putting a junk car on blocks in their front yard," Campisi said. "An important thing to remember is that both sides, the association and the homeowner, have rights. They also have responsibilities."
Campisi said most disputes between homeowners and association boards involve a lack of communication and reasonableness. While not wanting to comment on the Yergers' case specifically, he said doing the reasonable thing and communicating your intentions before taking action often will prevent a dispute.
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Fred Pilot sent me this piece from the Reading Eagle in Reading, PA. It is ironic that I wrote Privatopia while I was living in Reading and teaching at Albright College. Didn't change a thing in Reading, though, did it? That was in 1993-94. And here in the Reading Eagle we have the sort of thing that provincial journalist used to write in the 1990s --a silly, ignorant, one-sided puff piece for CAI and the CID industry, published as if it were a real feature article. Today, of course, the news media are much more educated on this subject, and even a quick Google search will produce some insight into the actual situation owners face with this industry, the huge volume of reform legislation, the tsunami of association insolvencies, etc. But in a cultural backwater like Reading, which is still in a 1950s time warp in every way, somebody with a job on a newspaper can still produce claptrap like this and have an editor sign off on it.
Sunday, March 18, 2012
Saturday, March 17, 2012
$100 to Fly Through the Airport - WSJ.com
$100 to Fly Through the Airport - WSJ.com
Hate the full-body scans, pat-downs and slow going at TSA airport security screening checkpoints? For $100, you can now bypass the hassle.
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The way things are headed in this country, soon there will be two ways to do any governmental task. One will be according to the rules and laws. It will be arduous. The other will be the streamlined route of the wealthy, lubricated by all their money. There will be a private bypass for every public function.
Hate the full-body scans, pat-downs and slow going at TSA airport security screening checkpoints? For $100, you can now bypass the hassle.
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The way things are headed in this country, soon there will be two ways to do any governmental task. One will be according to the rules and laws. It will be arduous. The other will be the streamlined route of the wealthy, lubricated by all their money. There will be a private bypass for every public function.
Developer can't have it both ways, HOA residents argue
Esther Epstein has resided in the Beachwalk community for nearly 20 years.
She says when the area’s lake, also considered a common area, flooded in 2009, Moss told her the water was the responsibility of the Homeowners Association, which paid for the required pumping of the lake.
“There was water in my basement for over a month,” she said.
But her son, Jim Epstein, says Moss recently declared the lake is his, and that the Homeowner’s Association must pay him $56,000 to be allowed to use it.
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Privatize the gains, socialize the losses. Indeed.
She says when the area’s lake, also considered a common area, flooded in 2009, Moss told her the water was the responsibility of the Homeowners Association, which paid for the required pumping of the lake.
“There was water in my basement for over a month,” she said.
But her son, Jim Epstein, says Moss recently declared the lake is his, and that the Homeowner’s Association must pay him $56,000 to be allowed to use it.
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Privatize the gains, socialize the losses. Indeed.
Friday, March 16, 2012
Built by forced labor, German bunkers become homes - Yahoo! News
Built by forced labor, German bunkers become homes - Yahoo! News
BREMEN, Germany (Reuters) - German architect Rainer Mielke lives in a luxurious, light-filled penthouse atop a Nazi bunker that his elderly neighbors remember sheltering in during World War Two.
The architect has pioneered the art of converting the grim structures into bright living or working spaces, and his work is set to increase as Germany ramps up sales of the above-ground forts, originally designed as air-raid shelters.
Late Night FDL: Privatopia | Firedoglake
Late Night FDL: Privatopia | Firedoglake
It's nice when you invent a word and it gets picked up in the language, but it would be nicer if people acknowledged where it came from.
It's nice when you invent a word and it gets picked up in the language, but it would be nicer if people acknowledged where it came from.
Thursday, March 15, 2012
Three in 10 young adults live with parents, highest level since 1950s - CSMonitor.com
Three in 10 young adults live with parents, highest level since 1950s - CSMonitor.com
But is this altogether a bad thing? I love my kids and if they want to live with me while they get their lives launched, and that takes a little longer than it did twenty years ago, I don't see myself complaining about it. If they get married and have kids and are still living in their childhood bedroom I'll start getting concerned.
But is this altogether a bad thing? I love my kids and if they want to live with me while they get their lives launched, and that takes a little longer than it did twenty years ago, I don't see myself complaining about it. If they get married and have kids and are still living in their childhood bedroom I'll start getting concerned.
Mayor, unions at odds over fixes for Fresno budget - Politics - fresnobee.com
Mayor, unions at odds over fixes for Fresno budget - Politics - fresnobee.com
In an afternoon meeting with The Bee's editorial board, Swearengin and Scott moved the talk far away from the fiscal-emergency declarations and Chapter 9 bankruptcy threats that have made the city of Stockton a national example of financial incompetence.
At the same time, Swearengin and Scott drew a line in the sand for the city's 3,200 employees, implying that the Stockton scenario isn't far-fetched for Fresno for these reasons:
Three years of incessant layoffs, service reductions and penny-pinching haven't done the trick.
The city will struggle to close a $2.1 million general fund budget gap in the fiscal year ending June 30, let alone the huge gap projected over the next five years.
The revenue picture is flat -- sales-tax proceeds up a bit more than expected, property-tax proceeds down a bit more -- and Fresno is stuck in a farm-based economy traditionally slow to come out of recessions.
In an afternoon meeting with The Bee's editorial board, Swearengin and Scott moved the talk far away from the fiscal-emergency declarations and Chapter 9 bankruptcy threats that have made the city of Stockton a national example of financial incompetence.
At the same time, Swearengin and Scott drew a line in the sand for the city's 3,200 employees, implying that the Stockton scenario isn't far-fetched for Fresno for these reasons:
Three years of incessant layoffs, service reductions and penny-pinching haven't done the trick.
The city will struggle to close a $2.1 million general fund budget gap in the fiscal year ending June 30, let alone the huge gap projected over the next five years.
The revenue picture is flat -- sales-tax proceeds up a bit more than expected, property-tax proceeds down a bit more -- and Fresno is stuck in a farm-based economy traditionally slow to come out of recessions.
Sunday, March 11, 2012
Will home prices fall 20% more? - 1 - housing & recession - MSN Money
Will home prices fall 20% more? - 1 - housing & recession - MSN Money
The truth is, a combination of factors is set to push national home prices down an additional 10% or so before a hard bottom is found. And if Europe's debt mess and fiscal bickering in Washington result in another recession, the drop could be double that.
-----
See below. And the realtors I know are, as always, telling people what a great time it is to BUY, BUY, BUY.
The truth is, a combination of factors is set to push national home prices down an additional 10% or so before a hard bottom is found. And if Europe's debt mess and fiscal bickering in Washington result in another recession, the drop could be double that.
-----
See below. And the realtors I know are, as always, telling people what a great time it is to BUY, BUY, BUY.
More Boomers Selling Homes, but Who Will Buy Them? - US Business News - CNBC
More Boomers Selling Homes, but Who Will Buy Them? - US Business News - CNBC
"As boomers downsize because of retirement, finances, health or death, they're expected to release some 26 million homes onto the market by 2030, according to the Policy Center paper. The problem is that echo-boomers, or Generation Y—those born between 1982 and 1995—may not be buying up the inventory, says Pendall, whose retired mother is trying to sell a home and downsize." ---
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How can anybody expect them to buy homes? They owe a bazillion dollars in student loans and credit card debt and they just watched the price of housing fall through the floor and stay there. Now they should borrow $250K to buy a McMansion in the suburbs? Say what?
"As boomers downsize because of retirement, finances, health or death, they're expected to release some 26 million homes onto the market by 2030, according to the Policy Center paper. The problem is that echo-boomers, or Generation Y—those born between 1982 and 1995—may not be buying up the inventory, says Pendall, whose retired mother is trying to sell a home and downsize." ---
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How can anybody expect them to buy homes? They owe a bazillion dollars in student loans and credit card debt and they just watched the price of housing fall through the floor and stay there. Now they should borrow $250K to buy a McMansion in the suburbs? Say what?
Legislators want fewer HOA rules on streets
Lawmakers have for a number of years proposed legislation that would stop HOAs from setting rules regarding public streets. The bills stem from resident complaints about being fined for parking their own vehicles on public streets in front of their own homes.
"The reason this bill keeps coming back year after year is because there's a problem we're trying to solve," said Sen. Nancy Barto, R-Phoenix, who proposed one of this year's bills. "HOA communities do not have regulating authority over public roadways."
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As I said previously in this space, I've never understood the need for this bill. How can a private corporation assert jurisdiction over a public right of way? Have Privatopian principalities as George Staropoli refers to them gotten so powerful they believe they can annex or declare public roads within their sphere of influence?
Saturday, March 10, 2012
Corrections Corporation Of America Sues Florida Town For Blocking New Detention Center
Corrections Corporation Of America Sues Florida Town For Blocking New Detention Center
The nation's largest private prison corporation sued a South Florida town this week, arguing that city officials are trying to "disrupt and derail" plans to build one of nation's largest immigrant-detention centers northwest of Miami.
Corrections Corporation of America's federal lawsuit claims that city officials in Pembroke Pines, Fla., are interfering with the company's "advantageous business relationship" with federal immigration authorities. Corrections Corp. reached a tentative deal with U.S. Immigration and Customs Enforcement last summer to build a 1,500-bed detention facility in Southwest Ranches, a quiet suburban enclave near the Everglades.
But residents and immigrant-rights groups have waged a battle against the company and elected officials who support construction of the jail.
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All must kneel before our privatizing overlords. Apparently not everybody is falling in line, though. How inconvenient.
The nation's largest private prison corporation sued a South Florida town this week, arguing that city officials are trying to "disrupt and derail" plans to build one of nation's largest immigrant-detention centers northwest of Miami.
Corrections Corporation of America's federal lawsuit claims that city officials in Pembroke Pines, Fla., are interfering with the company's "advantageous business relationship" with federal immigration authorities. Corrections Corp. reached a tentative deal with U.S. Immigration and Customs Enforcement last summer to build a 1,500-bed detention facility in Southwest Ranches, a quiet suburban enclave near the Everglades.
But residents and immigrant-rights groups have waged a battle against the company and elected officials who support construction of the jail.
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All must kneel before our privatizing overlords. Apparently not everybody is falling in line, though. How inconvenient.
Banks foreclosing on churches in record numbers | Reuters
Banks foreclosing on churches in record numbers | Reuters
"Since 2010, 270 churches have been sold after defaulting on their loans, with 90 percent of those sales coming after a lender-triggered foreclosure, according to the real estate information company CoStar Group.
In 2011, 138 churches were sold by banks, an annual record, with no sign that these religious foreclosures are abating, according to CoStar. That compares to just 24 sales in 2008 and only a handful in the decade before.
The church foreclosures have hit all denominations across America, black and white, but with small to medium size houses of worship the worst. Most of these institutions have ended up being purchased by other churches.
The highest percentage have occurred in some of the states hardest hit by the home foreclosure crisis: California, Georgia, Florida and Michigan."
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"Since 2010, 270 churches have been sold after defaulting on their loans, with 90 percent of those sales coming after a lender-triggered foreclosure, according to the real estate information company CoStar Group.
In 2011, 138 churches were sold by banks, an annual record, with no sign that these religious foreclosures are abating, according to CoStar. That compares to just 24 sales in 2008 and only a handful in the decade before.
The church foreclosures have hit all denominations across America, black and white, but with small to medium size houses of worship the worst. Most of these institutions have ended up being purchased by other churches.
The highest percentage have occurred in some of the states hardest hit by the home foreclosure crisis: California, Georgia, Florida and Michigan."
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Friday, March 09, 2012
Harrisburg, Pennsylvania, Set to Default on $5.27 Million GO Bond Payments - Bloomberg
Harrisburg, Pennsylvania, Set to Default on $5.27 Million GO Bond Payments - Bloomberg
"Harrisburg (9661MF), Pennsylvania’s insolvent capital, says it will miss general-obligation bond payments for the first time next week as its receiver seeks approval for a plan to sell assets.
The city, carrying a debt load of more than five times its general-fund budget, will miss $5.27 million in bond payments due March 15 on $51.5 million of bonds issued in 1997, according to a notice its receiver posted on the Electronic Municipal Market Access system, a database for filings by debt issuers."
-----------------------
Harrisburg was not allowed to go bankrupt under Chapter 9. Instead the city's finances were put in the hands of a receiver. And now all kinds of bad things loom on the horizon for the city and its employees.
"Harrisburg (9661MF), Pennsylvania’s insolvent capital, says it will miss general-obligation bond payments for the first time next week as its receiver seeks approval for a plan to sell assets.
The city, carrying a debt load of more than five times its general-fund budget, will miss $5.27 million in bond payments due March 15 on $51.5 million of bonds issued in 1997, according to a notice its receiver posted on the Electronic Municipal Market Access system, a database for filings by debt issuers."
-----------------------
Harrisburg was not allowed to go bankrupt under Chapter 9. Instead the city's finances were put in the hands of a receiver. And now all kinds of bad things loom on the horizon for the city and its employees.
Wednesday, March 07, 2012
Vietnam vet says he's being singled out; Local man fights HOA over soldier cut out
Eggleston also feels he's being a victim because there are other signs in the neighborhood—political signs that no one's asked for to be taken down.
Saahir said those homeowners have received similar letters to take down their signs, but short of police showing up or a court order, Eggleston said he won't be taking down his soldier.
"I'm going to leave it up until somebody of a higher authority than a homeowner's president tells me to take it down."
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Like I was saying a few months ago here, HOAs aren't viewed by some as legitimate forms of local government but rather nebbish neighbors with too much time on their hands. And more bad media coverage for Privatopia in this latest kerfuffle over patriotic displays. Film at 10.
Tuesday, March 06, 2012
The End of Ownership: Why Aren't Young People Buying More Houses? - Derek Thompson - Business - The Atlantic
The End of Ownership: Why Aren't Young People Buying More Houses? - Derek Thompson - Business - The Atlantic
Fewer young people are finding jobs. Fewer young people are getting married. Fewer young people are buying homes.
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A trillion dollars in student loan debt is one reason. Add in the unfolding disaster that is the housing market. How can anybody expect them to go out and get married, buy a house, and have kids? Rick Santorum would no doubt blame it on single mothers.
Fewer young people are finding jobs. Fewer young people are getting married. Fewer young people are buying homes.
-----------------------------
A trillion dollars in student loan debt is one reason. Add in the unfolding disaster that is the housing market. How can anybody expect them to go out and get married, buy a house, and have kids? Rick Santorum would no doubt blame it on single mothers.
Sunday, March 04, 2012
Real estate deflation, municipal anti-blight efforts delay foreclosures
In addition, states and municipalities have grown more aggressive in the last few months in trying to force banks to maintain foreclosed properties, which have become blights on neighborhoods from coast to coast. Last month, lawmakers in Florida and courts in New York considered new ways to require lenders to alter loans to keep people in their homes or complete foreclosures more quickly.
“Under normal circumstances, the banks would be able to cover the cost of maintenance, upkeep and property taxes by just reselling the property, but these are desperate times, and banks are resorting to somewhat desperate measures in some cases,” said Daren Blomquist, a vice president at RealtyTrac, a real estate analysis firm. “It is more of a factor now because property values have come down and will not cover all these costs when the banks resell the property, if they can resell the property.-------------------------
Foreclosure loses its utility when lenders can't make the numbers pencil out and leaving the homeowner in place can stave off local governments targeting REOs that aren't being maintained.
Saturday, March 03, 2012
Will HOAs become target of small claims suits?
You've paid your HOA assessments yet the common areas are unmaintained and the pool is closed, having turned into urban pond that's a mosquito breeding ground. It's not fair.
Might people who might feel that way toward their HOAs -- which as the perfessor and I have noted aren't winning popularity contests and continue to receive negative media attention -- take them to court and demand a refund or credit of their assessments?
If they do, the might become part of a fledgling trend to sue deep pocketed defendants who might otherwise have them legally outgunned in court in the no-lawyer courtroom: small claims. This story reports on how large companies such as Honda and AT&T are getting sued in small claims and facing judgments.
Might people who might feel that way toward their HOAs -- which as the perfessor and I have noted aren't winning popularity contests and continue to receive negative media attention -- take them to court and demand a refund or credit of their assessments?
If they do, the might become part of a fledgling trend to sue deep pocketed defendants who might otherwise have them legally outgunned in court in the no-lawyer courtroom: small claims. This story reports on how large companies such as Honda and AT&T are getting sued in small claims and facing judgments.
Friday, March 02, 2012
THE KANGAROO STAYS! | Weird News - Y100 - Miami's Hit Music Station
THE KANGAROO STAYS! | Weird News - Y100 - Miami's Hit Music Station
Nice to hear that the HOA changed its mind. It seems that Mike will only be living in the HOA for a year or so and then he is off to a wild animal park. This article has some cute kangaroo photos. Thanks to Fred Pilot for the link.
A local family has won a battle with their HOA over an unusual pet.
The Dreis family has a 6-month-old kangaroo, Mike.
But they didn’t get Mike just for fun – he’s actually there to help the family’s 16-year-old special-needs daughter, Kala.
------------------------------------Nice to hear that the HOA changed its mind. It seems that Mike will only be living in the HOA for a year or so and then he is off to a wild animal park. This article has some cute kangaroo photos. Thanks to Fred Pilot for the link.
Thursday, March 01, 2012
Capitol Alert: Housing meltdown dropped California's home ownership rate
Capitol Alert: Housing meltdown dropped California's home ownership rate
The housing industry meltdown in California sharply reversed a trend of steadily increasing homeownership, a new statistical compilation by the Census Bureau reveals.
The result: The percentage of Californians who live in homes that they and their families own dipped to 55.3 percent in 2011, the second lowest rate of any state, just ahead of New York's 53.6 percent.
The current California level is just about where it was during the 1980s and 1990s before climbing to as high as 60.2 percent in 2006, just before the housing market implosion.
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Wow. This is a national trend, but a drop of almost five percentage points is huge. Thanks to Fred Pilot for the link
Condo Complex Walls Collapse In January, Still Not Fixed - Denver News Story - KMGH Denver
Condo Complex Walls Collapse In January, Still Not Fixed - Denver News Story - KMGH Denver
LAKEWOOD, Colo. -- Gaping holes in walls, sunlight streaming in through electrical sockets, a bathtub exposed.This is the way it has been for almost two months now at the Snowbird Condos on Zang Street in Lakewood. Brick walls collapsed on two of the buildings during a wind storm at the beginning of January.
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Thanks to Fred Pilot for this link to yet another collapsing condo. In this case the word "collapse" is used literally.
LAKEWOOD, Colo. -- Gaping holes in walls, sunlight streaming in through electrical sockets, a bathtub exposed.This is the way it has been for almost two months now at the Snowbird Condos on Zang Street in Lakewood. Brick walls collapsed on two of the buildings during a wind storm at the beginning of January.
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Thanks to Fred Pilot for this link to yet another collapsing condo. In this case the word "collapse" is used literally.
Tuesday, February 28, 2012
Stockton's options nearly all bad - Bee Editorials - Modbee.com
Stockton's options nearly all bad - Bee Editorials - Modbee.com
"Every local elected official should be paying close attention to what is happening in the city of Stockton today. Our neighbor to the north, California's 13th largest city with a population of approaching 300,000 people, is flirting with bankruptcy. The City Council is expected to approve an eight-point plan this evening that calls for the city to suspend approximately $2 million in bond payments through the end of the current fiscal year. The plan also calls for the city to embark on two months of private discussions with its bond holders, city employee unions and any other creditors with at least $5 million in claims against the city to determine if parties can reach accommodations that will allow Stockton to avoid bankruptcy. If the council agrees — and it really has no other viable option — Stockton will become the first city in the state to undergo the AB 506 process, a formalized mediation period designed to help jurisdictions restructure their debts and avoid municipal bankruptcy."
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This is a grim situation, obviously. As the headline points out, Stockton's unemployment rate is almost 16% and they are second only to Las Vegas in their foreclosure rate. It is hard to see how this city can strike a deal that will hold off Chapter 9 proceedings for very long.Monday, February 27, 2012
Calculated Risk: New Home Sales: 2011 Still the Worst Year, "Distressing Gap" remains very wide
Calculated Risk: New Home Sales: 2011 Still the Worst Year, "Distressing Gap" remains very wide
"Even with the upward revisions to new homesales
in October, November and December, 2011 was the worst year for new home sales since the Census Bureau started tracking sales in 1963. The three worst years were 2011, 2010, and 2009 with sales of 304, 323 and 375 thousand respectively."
--------------------------------
People keep trying to talk up the market by finding a single statistic here or there that looks like it is going up. But the unavoidable fact is that the new housing market is getting worse, year by year.
"Even with the upward revisions to new home
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People keep trying to talk up the market by finding a single statistic here or there that looks like it is going up. But the unavoidable fact is that the new housing market is getting worse, year by year.
Sunday, February 26, 2012
Rocklin Considering Banning Residents From Smoking Outside Their Own Homes « CBS Sacramento
Rocklin Considering Banning Residents From Smoking Outside Their Own Homes « CBS Sacramento
ROCKLIN (CBS13) – A Rocklin resident has asked the City Council to consider a ban on smoking that some say goes way too far.
The Rocklin City Council was asked to consider making it against the law for smokers to smoke anywhere outside on their property.
Rocklin City Manager Rick Horst said the city has “no intention of considering the matter.”
One homeowner complained about smoke coming from a neighbors’ backyard, saying it caused health problems for their kids.
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At last. A city official with common sense. There is hope.
Wyoming House advances doomsday bill
Wyoming House advances doomsday bill
Where to begin? First, note how far the craziness on the right has gone. Now we have elected Republicans legislating for the post-apocalypse. Second, they keep telling us how much they revere the US Constitution, but they can't wait to re-institute the Articles of Confederation when the states could act like nations. Third, if Wyoming had an aircraft carrier, where within the borders of the great nation of Wyoming would they put it? Fourth, if you want to see where these elected wing nuts got the idea, check this out.
"CHEYENNE — State representatives on Friday advanced legislation to launch a study into what Wyoming should do in the event of a complete economic or political collapse in the United States. House Bill 85 passed on first reading by a voice vote. It would create a state-run government continuity task force, which would study and prepare Wyoming for potential catastrophes, from disruptions in food and energy supplies to a complete meltdown of the federal government. The task force would look at the feasibility of Wyoming issuing its own alternative currency, if needed. And House members approved an amendment Friday by state Rep. Kermit Brown, R-Laramie, to have the task force also examine conditions under which Wyoming would need to implement its own military draft, raise a standing army, and acquire strike aircraft and an aircraft carrier."
--------------------------------------------Where to begin? First, note how far the craziness on the right has gone. Now we have elected Republicans legislating for the post-apocalypse. Second, they keep telling us how much they revere the US Constitution, but they can't wait to re-institute the Articles of Confederation when the states could act like nations. Third, if Wyoming had an aircraft carrier, where within the borders of the great nation of Wyoming would they put it? Fourth, if you want to see where these elected wing nuts got the idea, check this out.
Foreclosure settlement a failure of law, a triumph for bank attorneys - The Washington Post
Foreclosure settlement a failure of law, a triumph for bank attorneys - The Washington Post
We never want to see an innocent party “accidentally” evicted from a home. The legal system has evolved so this has become a “legal impossibility.” Imagine returning home from work or vacation to find the front door padlocked, the belongings strewn all over the block, a big orange sticker screaming “FORECLOSED” on the garage door, with an auction sign in the front lawn. Now imagine that this occurred even though you are not in default or even delinquent on payments. Thanks to the robosigning banks, this legal impossibility has happened repeatedly, even to homeowners who paid cash for their houses and had no mortgages. Imagine that — foreclosed with no mortgage.
-------------------------
Barry Ritholtz nails it. Here's the #1 reason why the foreclosure settlement (the "terms" of which are still a secret) is so awful.
We never want to see an innocent party “accidentally” evicted from a home. The legal system has evolved so this has become a “legal impossibility.” Imagine returning home from work or vacation to find the front door padlocked, the belongings strewn all over the block, a big orange sticker screaming “FORECLOSED” on the garage door, with an auction sign in the front lawn. Now imagine that this occurred even though you are not in default or even delinquent on payments. Thanks to the robosigning banks, this legal impossibility has happened repeatedly, even to homeowners who paid cash for their houses and had no mortgages. Imagine that — foreclosed with no mortgage.
-------------------------
Barry Ritholtz nails it. Here's the #1 reason why the foreclosure settlement (the "terms" of which are still a secret) is so awful.
Saturday, February 25, 2012
The "robo-signing" settlement won’t help homeowners, and it doesn’t hurt the banks. - Slate Magazine
The "robo-signing" settlement won’t help homeowners, and it doesn’t hurt the banks. - Slate Magazine
The main motivation behind the administration’s indulgence of serious criminality evidently is fear of the consequences of taking tough action on individual bankers. And maybe officials are right to be afraid, given the massive size of the banks in question relative to the economy...The message to bank executives today is simple: build your bank to be as big as possible—and then keep growing. If you manage to become big enough, you and your employees are not just too big to fail, but also too big to jail.
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This explanation makes sense to me. These big banking corporations are above the law.
The main motivation behind the administration’s indulgence of serious criminality evidently is fear of the consequences of taking tough action on individual bankers. And maybe officials are right to be afraid, given the massive size of the banks in question relative to the economy...The message to bank executives today is simple: build your bank to be as big as possible—and then keep growing. If you manage to become big enough, you and your employees are not just too big to fail, but also too big to jail.
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This explanation makes sense to me. These big banking corporations are above the law.
Insider Says Wells Fargo’s Independent Foreclosure Review for OCC is “a Sham” - Mandelman Matters
Insider Says Wells Fargo’s Independent Foreclosure Review for OCC is “a Sham” - Mandelman Matters
"“I was hired as one of those “Independent File Review Specialist” at a company called Promontory working on Wells Fargo Bank. I have 15 years industry experience in all facets of the mortgage & title industry, and just needed a job at the moment. I must say the whole project is a mess, and a terrible joke on the victims of foreclosure and the American people. It’s a total sham.”
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"“I was hired as one of those “Independent File Review Specialist” at a company called Promontory working on Wells Fargo Bank. I have 15 years industry experience in all facets of the mortgage & title industry, and just needed a job at the moment. I must say the whole project is a mess, and a terrible joke on the victims of foreclosure and the American people. It’s a total sham.”
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Friday, February 24, 2012
Case shines light on how much power private security has when policing neighborhoods - chicagotribune.com
Case shines light on how much power private security has when policing neighborhoods - chicagotribune.com
"It's a massive, ad hoc privatization of government services," said Evan McKenzie, a University of Illinois at Chicago associate professor of political science and critic who has written two books on the topic. "That's why you get these weird situations.
"It makes sense to (homeowners groups) from a property-management perspective," he said. "But if you view it another way, the actions of any government are supposed to be limited by concepts of civil liberties. Civil liberties don't always apply here."
An Illinois appeals court in a strongly worded ruling last month found that Lake Holiday's practice of stopping and detaining drivers for violating homeowners association rules was unlawful. The court also found that the association's use of amber-colored flashing lights on its vehicles was unlawful and that the association could be held liable for Poris' false imprisonment claim.
A LaSalle County judge had previously ruled in favor of the homeowners association.
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Indeed. I couldn't have said it better myself.
Here's the meat of the opinion:
"As set forth above, the Association's security department's practices of stopping and detaining drivers for violating Association rules and using amber flashing and oscillating lights on its security vehicles are unlawful. Thus, the trial court erred in granting summary judgment to the Association on those issues. We affirm the court's grant of summary judgment to the Association on plaintiff's claims that the Association's use of recording equipment and radar violate Illinois law. However, we reverse and remand for the trial court to grant summary judgment to plaintiff on his claims that the Association's practices of stopping and detaining drivers for rule violations and of using amber lights on their security vehicles are unlawful...Because Podnar restrained plaintiff for violating an Association rule, not a criminal law, plaintiff established the elements necessary for his false imprisonment claim. The trial court erred in granting summary judgment to the Association on that count. We reverse and remand to the trial court to enter summary judgment in favor of plaintiff on the liability portion of his false imprisonment cause of action and to determine plaintiff's damages."
The case is:
KENNETH E. PORIS, Plaintiff-Appellant, v. LAKE HOLIDAY PROPERTY OWNERS ASSOCIATION, INC., GEORGE LEIDOLF, JAMES MORAN, STEVEN CONDON, DOROTHY FLEMING, JAMES BYRNE, MICHAEL IVANAUSKAS, CINDY KAMINKY and MATTHEW CLIFFORD, Defendants-Appellees.
No. 3-11-0131
APPELLATE COURT OF ILLINOIS, THIRD DISTRICT
2012 Ill. App. LEXIS 42; 2012 IL App (3d) 110131
January 24, 2012, Opinion Filed---------------
"It's a massive, ad hoc privatization of government services," said Evan McKenzie, a University of Illinois at Chicago associate professor of political science and critic who has written two books on the topic. "That's why you get these weird situations.
"It makes sense to (homeowners groups) from a property-management perspective," he said. "But if you view it another way, the actions of any government are supposed to be limited by concepts of civil liberties. Civil liberties don't always apply here."
An Illinois appeals court in a strongly worded ruling last month found that Lake Holiday's practice of stopping and detaining drivers for violating homeowners association rules was unlawful. The court also found that the association's use of amber-colored flashing lights on its vehicles was unlawful and that the association could be held liable for Poris' false imprisonment claim.
A LaSalle County judge had previously ruled in favor of the homeowners association.
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Indeed. I couldn't have said it better myself.
Here's the meat of the opinion:
"As set forth above, the Association's security department's practices of stopping and detaining drivers for violating Association rules and using amber flashing and oscillating lights on its security vehicles are unlawful. Thus, the trial court erred in granting summary judgment to the Association on those issues. We affirm the court's grant of summary judgment to the Association on plaintiff's claims that the Association's use of recording equipment and radar violate Illinois law. However, we reverse and remand for the trial court to grant summary judgment to plaintiff on his claims that the Association's practices of stopping and detaining drivers for rule violations and of using amber lights on their security vehicles are unlawful...Because Podnar restrained plaintiff for violating an Association rule, not a criminal law, plaintiff established the elements necessary for his false imprisonment claim. The trial court erred in granting summary judgment to the Association on that count. We reverse and remand to the trial court to enter summary judgment in favor of plaintiff on the liability portion of his false imprisonment cause of action and to determine plaintiff's damages."
The case is:
No. 3-11-0131
APPELLATE COURT OF ILLINOIS, THIRD DISTRICT
2012 Ill. App. LEXIS 42; 2012 IL App (3d) 110131
January 24, 2012, Opinion Filed
Wednesday, February 22, 2012
Man admits embezzling from Wisconsin, other homeowner groups - TODAY'S TMJ4
Man admits embezzling from Wisconsin, other homeowner groups - TODAY'S TMJ4
Palmer owned and operated Home Owner Association Services, which provided management services and managed accounts for homeowner associations in Missouri, Kansas, Wisconsin, and Illinois.
Prosecutors say when Palmer closed the company's Kansas City office in March 2011, $751,302 was missing from the accounts of 32 homeowner associations.
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Thanks to Fred Pilot for this link to yet another of the dozens and dozens of HOA/condo manager frauds that have taken place in recent years. But remember: all of them are isolated instances that do not point to the need for government oversight of this industry.
Monday, February 20, 2012
Courts order demolition of $1.1 million Macomb County mansion built too close to property line | Detroit Free Press | freep.com
Courts order demolition of $1.1 million Macomb County mansion built too close to property line | Detroit Free Press | freep.com
The Michigan Court of Appeals has told a couple they have to tear down all or part of their $1.1 million mansion because they built it too close to their property lines.
The order came in a lawsuit a neighboring couple filed in 2004 against Simon and Saca Palushaj over their 9,000-square-foot house in Macomb County’s Washington Township, 25 miles north of Detroit...The Thoms’ attorney, Thomas Kalas, said he was not surprised by the ruling because courts already have determined deed restrictions are legally enforceable. “These are not new or novel issues,” Kalas said. “Deed-restriction law is pretty much settled. You have to abide by them.”
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Don Nordeen sent this link to a pretty extreme example of the way US courts view deed restrictions. Historically British courts were somewhat dubious about deed restrictions because they thought over time use restrictions would accumulate and reduce the value of property, but as we know the US judiciary buys the argument that restrictions are good for property values because they prevent unwanted uses of land. The truth is not that simple--either way--but of course now the real estate development industry has taken this simple tool and injected it with steroids and growth hormones and created the homeowner association-run subdivision.
The Michigan Court of Appeals has told a couple they have to tear down all or part of their $1.1 million mansion because they built it too close to their property lines.
The order came in a lawsuit a neighboring couple filed in 2004 against Simon and Saca Palushaj over their 9,000-square-foot house in Macomb County’s Washington Township, 25 miles north of Detroit...The Thoms’ attorney, Thomas Kalas, said he was not surprised by the ruling because courts already have determined deed restrictions are legally enforceable. “These are not new or novel issues,” Kalas said. “Deed-restriction law is pretty much settled. You have to abide by them.”
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Don Nordeen sent this link to a pretty extreme example of the way US courts view deed restrictions. Historically British courts were somewhat dubious about deed restrictions because they thought over time use restrictions would accumulate and reduce the value of property, but as we know the US judiciary buys the argument that restrictions are good for property values because they prevent unwanted uses of land. The truth is not that simple--either way--but of course now the real estate development industry has taken this simple tool and injected it with steroids and growth hormones and created the homeowner association-run subdivision.
Foreclosure abuse rampant across U.S., experts say | Reuters
Foreclosure abuse rampant across U.S., experts say | Reuters
A report this week showing rampant foreclosure abuse in San Francisco reflects similar levels of lender fraud and faulty documentation across the United States, say experts and officials who have done studies in other parts of the country.
The audit of almost 400 foreclosures in San Francisco found that 84 percent of them appeared to be illegal, according to the study released by the California city on Wednesday.
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Incredible, isn't it? Where are the criminal prosecutions of these people?
Saturday, February 18, 2012
Condo Relief -- Extension of the Florida Distressed Condominium Relief Act ? | The National Law Review
Condo Relief -- Extension of the Florida Distressed Condominium Relief Act ? | The National Law Review
See my post below below for the reference to Florids HB 319, which includes a three-year extension of this act. As explained by attorney Alexander Dobrev:
"As a reminder, the Distressed Condominium Relief Act marked a dramatic shift in Florida law, encouraging the bulk acquisition of condominium projects by protecting the acquirer against some significant liabilities which could be inherited from the original developer (a.k.a. "successor developer" liabilities), while allowing the acquirer to retain certain useful and valuable rights with respect to the operations, repositioning and eventual disposition of the assets.
See my post below below for the reference to Florids HB 319, which includes a three-year extension of this act. As explained by attorney Alexander Dobrev:
"As a reminder, the Distressed Condominium Relief Act marked a dramatic shift in Florida law, encouraging the bulk acquisition of condominium projects by protecting the acquirer against some significant liabilities which could be inherited from the original developer (a.k.a. "successor developer" liabilities), while allowing the acquirer to retain certain useful and valuable rights with respect to the operations, repositioning and eventual disposition of the assets.
"As the Act's sunset date of July 1, 2012 approaches, liability concerns relating to statutory warranties on units and common elements, unfunded reserves, past due assessments or deficit funding obligations, the acts and/or omissions of the prior developer's board of directors, and the like, are likely to increase and to add downward pressures on the still distressed condominium market."
Suburbs May be Losing Their Luster to Home Buyers - Yahoo! Finance
Suburbs May be Losing Their Luster to Home Buyers - Yahoo! Finance
With gas prices hitting record highs the past few years, long commutes into city centers are becoming pricier, and current and future homeowners are thinking more about proximity to work and play when looking for housing. There's a new emphasis on smaller, better located homes, Morici says, prompting more construction of multi-family residences closer to cities.
The legacy of the housing bubble and the still-unsteady jobs market has also played a role. "Many young workers may need to move to stay employed and are wary of being tied to a house they may not be able to sell," Morici says. "Hence, more young families are opting to rent."
All of this adds up to more challenges for the housing market when it comes to selling through the enormous overhang of supply, and calls into the question the dynamics of the housing market going forward. After all, rental housing tends to be concentrated in urban areas, not the suburbs.
So does a new preference (and in some cases necessity) to rent mean an end to suburbs and a revival of downtown, city living?
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Thanks to Fred Pilot for sending this link. James Howard Kunstler has been making this point for years now, but in much more scathing terms. He thinks that instead of our young people learning how to make cities more livable they should be learning how to take care of the mules they will soon be riding.
Arizona Senators debate HOA legal status « HOA Constitutional Government
Arizona Senators debate HOA legal status « HOA Constitutional Government
Take a look at this remarkable post by George Staropoli, and the even more remarkable video that he links to, where you hear Arizona legislators actually discussing whether private corporations should be able to enforce their rules on...public roads. The bill in question is SB 1113.
Read this. How does subsection B grab you?
Take a look at this remarkable post by George Staropoli, and the even more remarkable video that he links to, where you hear Arizona legislators actually discussing whether private corporations should be able to enforce their rules on...public roads. The bill in question is SB 1113.
Read this. How does subsection B grab you?
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 33, chapter 16, article 1, Arizona Revised Statutes, is amended by adding section 33-1817, to read:
33-1817. Community authority over public roadways; exemption
A. Notwithstanding any provision in the community documents, after the period of declarant control, an association has no authority over and shall not regulate any roadway for which the ownership has been dedicated to or is otherwise held by a governmental entity.
B. This section does not apply to a planned community located in an unincorporated area of a county.H 319 -- REPRESENTATIVE GEORGE MORAITIS MALARKEY
H 319 -- REPRESENTATIVE GEORGE MORAITIS MALARKEY
"To be very honest I have barely ever seen more malarkey than the excuses Representative George Moraitis offered to defend his House Bill 319 in the Sun Sentinel last Tuesday, especially after adding amendments to this bill which clearly made it an anti-owner bill."
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That is Jan Bergemann's take on the huge bill that is making its way through the Florida legislature. Read Jan's analysis to see why he believes that a bill that had potential is now a turkey. He is reacting to an op-ed that Moraitis wrote in which he defends a bank goodie contained in the bill (see below) and claims that he is "clarifying" existing law. I love it when legislators dump a ton of complicated verbiage on the public and claim they are clarifying things for us. The current full text of the bill, 75 pages in length, is here.
I have also linked to the latest legislative analysis of the bill.
The bill covers many different issue, several of which are discussed in Jan's post. There is a nice little goodie for the banks: letting them off the hook for paying attorney fees, interest, costs, and late fees on foreclosed units. That's the provision Moraitis is defending in his op-ed. There is also an extension of the Distressed Condominium Relief Act to 2015. It would have expired this year. That Act is intended to make it easier and less risky for bulk buyers of condo units in failed/failing projects to do so. The Act allows them to assume some developer rights without assuming all the developer responsibilities.
To me, the moral of the story is that the condominium as a form of ownership is so fragile that it can't survive without all this endless "clarification" that is really complication, and constant gimmes and goodies for banks, vulture capitalists, developers, lawyers, managers, and so forth to induce them to somehow keep this institution held more or less together with duct tape and baling wire. When you look through all the verbiage, all these schemes come back to one strategy: more responsibilities and less power and freedom for the unit owners. If you don't believe, me, check out Moraitis' next project, which is to make it easier for associations to foreclose on owners when the banks won't:
"The root cause of many associations' current financial problems is the number of unit owners not paying their fair share of assessments. I am co-sponsoring legislation that will give courts greater flexibility to move foreclosures forward when the lenders fail to pursue cases to the financial detriment of our associations. Through this, units will be able to be resold to new paying owners more quickly, improving the financial condition of our homeowners associations."
"To be very honest I have barely ever seen more malarkey than the excuses Representative George Moraitis offered to defend his House Bill 319 in the Sun Sentinel last Tuesday, especially after adding amendments to this bill which clearly made it an anti-owner bill."
-----------------------
That is Jan Bergemann's take on the huge bill that is making its way through the Florida legislature. Read Jan's analysis to see why he believes that a bill that had potential is now a turkey. He is reacting to an op-ed that Moraitis wrote in which he defends a bank goodie contained in the bill (see below) and claims that he is "clarifying" existing law. I love it when legislators dump a ton of complicated verbiage on the public and claim they are clarifying things for us. The current full text of the bill, 75 pages in length, is here.
I have also linked to the latest legislative analysis of the bill.
The bill covers many different issue, several of which are discussed in Jan's post. There is a nice little goodie for the banks: letting them off the hook for paying attorney fees, interest, costs, and late fees on foreclosed units. That's the provision Moraitis is defending in his op-ed. There is also an extension of the Distressed Condominium Relief Act to 2015. It would have expired this year. That Act is intended to make it easier and less risky for bulk buyers of condo units in failed/failing projects to do so. The Act allows them to assume some developer rights without assuming all the developer responsibilities.
To me, the moral of the story is that the condominium as a form of ownership is so fragile that it can't survive without all this endless "clarification" that is really complication, and constant gimmes and goodies for banks, vulture capitalists, developers, lawyers, managers, and so forth to induce them to somehow keep this institution held more or less together with duct tape and baling wire. When you look through all the verbiage, all these schemes come back to one strategy: more responsibilities and less power and freedom for the unit owners. If you don't believe, me, check out Moraitis' next project, which is to make it easier for associations to foreclose on owners when the banks won't:
"The root cause of many associations' current financial problems is the number of unit owners not paying their fair share of assessments. I am co-sponsoring legislation that will give courts greater flexibility to move foreclosures forward when the lenders fail to pursue cases to the financial detriment of our associations. Through this, units will be able to be resold to new paying owners more quickly, improving the financial condition of our homeowners associations."
How Citibank Dumped Lousy Mortgages on the Government - ProPublica
How Citibank Dumped Lousy Mortgages on the Government - ProPublica
"Citigroup agreed yesterday to pay $158 million to settle a lawsuit over bad loans that the bank passed on to the Federal Housing Administration to insure. The whistle-blower who originally brought the case, Sherry Hunt, an employee of Citi's mortgage department, said the company actively undermined the process that was supposed to check for fraud in order to push through reckless loans and get higher profits."
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Yet another ripoff by a "too big to fail" bank. Pay some money, nobody goes to jail.
"Citigroup agreed yesterday to pay $158 million to settle a lawsuit over bad loans that the bank passed on to the Federal Housing Administration to insure. The whistle-blower who originally brought the case, Sherry Hunt, an employee of Citi's mortgage department, said the company actively undermined the process that was supposed to check for fraud in order to push through reckless loans and get higher profits."
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Yet another ripoff by a "too big to fail" bank. Pay some money, nobody goes to jail.
Friday, February 17, 2012
Mortgage settlement with banks sparks new scam - WTOP Mobile
Mortgage settlement with banks sparks new scam - WTOP Mobile
WASHINGTON - Scammers are trying to take advantage of the multi-state mortgage service settlement announced last week.
Virginia Attorney General Ken Cuccinelli said the calls and emails about scams began very soon after the settlement was announced. The scammers try and convince consumers that, for a fee, they can get some of that money announced in the settlement with major banks.
"It's unbelievable how scammers prey on people who are vulnerable and have already been hurt," said Cuccinelli's spokesman, Brian Gottstein. "These people have no souls."
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Well, you would have a hard time finding a soul in anybody throughout this entire process, from the mortgage originators to the investment banks that created the garbage mortgage backed securities, and on to the ratings agencies that called it AAA and right through the whole line of policy makers who deregulated the industry and left consumers completely vulnerable to predators, and then on to the phony "mortgage rescue" fraudsters, the mortgage foreclosure mills with their sleazy robosigners, and on and on. It is no surprise that yet another bunch of con artists are preying on people.
Tuesday, February 14, 2012
Cash in as yet another housing bubble bursts - MoneyWeek
Cash in as yet another housing bubble bursts - MoneyWeek
Canada’s housing market is plagued by “overvaluation, speculation and over supply”, says Merrill Lynch. The Economist conducts a survey that compares house prices with the rents that property owners can charge. On this basis, Canadian residential property is overvalued by more than 70%. Even the central bank admits there’s a problem. In short, the country’s property prices won’t be able to defy gravity for much longer.
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Eh?
Canada’s housing market is plagued by “overvaluation, speculation and over supply”, says Merrill Lynch. The Economist conducts a survey that compares house prices with the rents that property owners can charge. On this basis, Canadian residential property is overvalued by more than 70%. Even the central bank admits there’s a problem. In short, the country’s property prices won’t be able to defy gravity for much longer.
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Eh?
Monday, February 13, 2012
After Mortgage Settlement, Fannie Mae, Freddie Mac Face Renewed Pressure On Principal Reduction
After Mortgage Settlement, Fannie Mae, Freddie Mac Face Renewed Pressure On Principal Reduction
Top law enforcement officials in several states are signaling they will pressure Fannie Mae and Freddie Mac to correct what is widely seen as one of the biggest deficiencies of the $25 billion mortgage settlement announced on Thursday: It simply doesn't help that many homeowners.
Borrowers whose loans are backed by the government-controlled mortgage giants -- nearly half of all outstanding mortgages in the United States -- are not eligible for payouts under the deal. State officials who negotiated the deal say they could not convince Fannie Mae and Freddie Mac, or the Federal Housing Finance Agency, which oversees the loan giants, to join onto the settlement because they are steadfastly opposed to principal reductions -- loan write-downs for borrowers whose homes are at risk of foreclosure.
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I believe the mystery quasi-settlement is supposed to cover less than 8% of the nation's mortgages. What is all the publicity about, if the GSE's aren't going to help out underwater owners?
Incomplete subdivisions face dangerous conditions | www.wsbtv.com
Incomplete subdivisions face dangerous conditions | www.wsbtv.com
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Another chapter in the accellerating failure of private communities. I wonder if municipalities have learned anything from this experience. One would think they would realize that putting their financial future in the hands of real estate developers is risky business. But on the other hand, you can't underestimate the effectiveness of developer dog-and-pony shows that promise city leaders that there will be rainbows, pots of gold, and new village halls in exchange for the development permit.
Thanks to Fred Pilot for the link.
LOVEJOY, Ga. —
Communities left incomplete by the housing bust are causing more problems than just empty and overgrown lots, according to homeowners. Some residents in Clayton County said they're also leading to potentially dangerous conditions. Melanie Scott, a homeowner in the Lovejoy Crossing subdivision, said she and her neighbors have had to fight for basic services, including street lights. Scott said residents also had to go to the city of Lovejoy to get a dark, undeveloped corner of their own neighborhood barricaded after a stream of illegal activity.----------------
Another chapter in the accellerating failure of private communities. I wonder if municipalities have learned anything from this experience. One would think they would realize that putting their financial future in the hands of real estate developers is risky business. But on the other hand, you can't underestimate the effectiveness of developer dog-and-pony shows that promise city leaders that there will be rainbows, pots of gold, and new village halls in exchange for the development permit.
Thanks to Fred Pilot for the link.
Horror stories prompt industry group to ask Colorado to regulate HOA managers - The Denver Post
Horror stories prompt industry group to ask Colorado to regulate HOA managers - The Denver Post
"Colorado legislators received so many complaints about HOAs that in 2010, they voted to create an HOA Information Office and Resource Center to gather complaints and help homeowners Through Dec. 1, the center had collected 478 complaints, a third of which named managers. Many of the rest centered on poor management practices — from a lack of transparency to ignoring homeowners' concerns About 2 million people in Colorado live under more than 8,000 HOAs, according to state estimates.
"At the CAI's request, the Colorado Department of Regulatory Agencies is conducting a "sunrise review" to determine whether HOA managers should be regulated. Nine states and the District of Columbia license or regulate community managers."
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When CAI starts asking for regulation, you know the situation is bad. I think many of the mom and pop property management firms are struggling these days. Financial problems trickle up from the owners to the association to the professionals. If the owners can't fund the association, the association can't hire professional management. I realize managers and lawyers do everything possible to sign up associations as clients and start the fee machine, but with all the unfinished subdivisions and foreclosures eventually owners just can't afford management fees. Thanks to Fred Pilot for the link.
Outsourcing Gym Class - The Bay Citizen
Outsourcing Gym Class - The Bay Citizen
The school district can't afford enough gym teachers, so the Parent-Teacher Organization is paying private contractors. Privatizing gym class--thanks to Fred Pilot for the link.
The school district can't afford enough gym teachers, so the Parent-Teacher Organization is paying private contractors. Privatizing gym class--thanks to Fred Pilot for the link.
Sunday, February 12, 2012
Mind-Blowing Charts From the Senate's Income Inequality Hearing | Mother Jones
Mind-Blowing Charts From the Senate's Income Inequality Hearing | Mother Jones
Just take a look at this and you can see who our public policy makers have been serving these last 30 years or so.
Just take a look at this and you can see who our public policy makers have been serving these last 30 years or so.
Cities Turn to a Crop for Cash - Medical Marijuana - NYTimes.com
Cities Turn to a Crop for Cash - Medical Marijuana - NYTimes.com
OAKLAND, Calif. — As the stubborn economic downturn has forced this city to take painful steps to balance its budget in recent years, it has increasingly turned to one of its newer industries to raise much-needed revenues: medical marijuana dispensaries. The city has raised taxes on marijuana dispensaries several times in the past few years, and last year it collected $1.4 million in taxes from them — nearly 3 percent of all the business taxes it collected. Now Oakland plans to double the number of dispensaries it licenses, to eight from the current four, in the hopes that it can collect even more revenue.
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My, my. How things have changed. I still remember when people went to jail for selling weed. Oh, wait. They still do. But they aren't the City of Oakland. The city becomes an indirect drug peddler to balance the budget, and that's just sound fiscal policy. But if Joe Schmoe living in Oakland decided to balance his own budget the same way, why, it's a completely different thing, don't you see?
-
OAKLAND, Calif. — As the stubborn economic downturn has forced this city to take painful steps to balance its budget in recent years, it has increasingly turned to one of its newer industries to raise much-needed revenues: medical marijuana dispensaries. The city has raised taxes on marijuana dispensaries several times in the past few years, and last year it collected $1.4 million in taxes from them — nearly 3 percent of all the business taxes it collected. Now Oakland plans to double the number of dispensaries it licenses, to eight from the current four, in the hopes that it can collect even more revenue.
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My, my. How things have changed. I still remember when people went to jail for selling weed. Oh, wait. They still do. But they aren't the City of Oakland. The city becomes an indirect drug peddler to balance the budget, and that's just sound fiscal policy. But if Joe Schmoe living in Oakland decided to balance his own budget the same way, why, it's a completely different thing, don't you see?
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Exclusive: Mortgage problems? Turn your house into a billboard | Reuters
Exclusive: Mortgage problems? Turn your house into a billboard | Reuters
In return for allowing the front of their four-bedroom house to become a garish advertisement, the Hostetlers are getting their nearly $2,000 monthly mortgage paid by the marketing company behind the project, Brainiacs From Mars.
In a residential neighborhood without heavy traffic, cars passing by the house slowed and drivers gawked at the vivid colors and a giant Brainiacs From Mars billboard.
Romeo Mendoza, the company's founder and CEO, told Reuters that his ultimate goal is to turn 1,000 homes across the United States into giant advertisements for his marketing firm.
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Mortgage Settlement as Attorney General Sellout: Deal is Not Done, and Final Version Guaranteed to be Worse Than Advertised « naked capitalism
Mortgage Settlement as Attorney General Sellout: Deal is Not Done, and Final Version Guaranteed to be Worse Than Advertised « naked capitalism
"The Administration and the banks both want a pro-bank deal (the only minor point of difference is how much in populist gestures the banks have to submit to in order to get the much more valuable bennies they want). The only parties that cared to any degree about ordinary citizens were the dissident AGs. But they now have now given up any bargaining leverage over how this deal turns out.
"The Administration and the banks both want a pro-bank deal (the only minor point of difference is how much in populist gestures the banks have to submit to in order to get the much more valuable bennies they want). The only parties that cared to any degree about ordinary citizens were the dissident AGs. But they now have now given up any bargaining leverage over how this deal turns out.
The only power any party has in a negotiation is his threat to leave the bargaining table. The AGs can no longer do that. They’ve taken star turns, made ringing pronouncements of how great this pact is. They can’t possibly reverse themselves mere weeks down the road and say, whoops, this deal isn’t go great after all."
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Great analysis. When the real deal surfaces, the AGs who were holding things up will have no way to back out of it. They have already gone on record with their victory laps.
Walker, Van Hollen: Chunk of mortgage settlement going to state budget - JSOnline
Walker, Van Hollen: Chunk of mortgage settlement going to state budget - JSOnline
But of a $31.6 million payment coming directly to the state government, most of that money - $25.6 million - will go to help close a budget shortfall revealed in newly released state projections. Van Hollen, whose office said he has the legal authority over the money, made the decision in consultation with Walker.
"Just like communities and individuals have been affected, the foreclosure crisis has had an effect on the state of Wisconsin, in terms of unemployment. . . . This will offset that damage done to the state of Wisconsin," Walker said.
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Scott Walker is the Koch Brothers-funded tool who ambushed the public employee unions after he became governor. Now he is stealing a bunch of the mortgage foreclosure settlement to balance the budget. It is too early to say for sure, but I think when all the facts are in a few years from now, Walker, Kasich, Daniels, and Scott will turn out to have been as bad for their respective states' economies as David Cameron has been for the UK, which remains mired in recession.
Saturday, February 11, 2012
Tallahassee tax cuts put squeeze on cities
The tax cuts are welcomed by the business community, but they come at a high cost that critics say will ultimately fall on local communities. As property tax revenues fall even further this year, local governments will again have to weigh tough decisions that run the gamut from shuttering libraries to ending social service programs to delaying new projects. With fewer options to cut after several years of concessions and layoffs, local officials may have to consider raising property tax rates, a politically dangerous and unpopular option.
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What's next? De-annexing neighborhoods and telling them to privatize their governance and infrastructure if they aren't already within the jurisdiction of a mandatory membership HOA?
Florida HOAs crippled by housing crisis
Florida HOAs crippled by housing crisis
LAKE WORTH, Fla. - The home buying market has undoubtedly had a huge impact on both developers and buyers. But homeowners associations are also in the middle caught up in all the mess of the housing crisis.
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Indeed. As I have been saying for the last few years. Thanks to Fred Pilot for this link.
LAKE WORTH, Fla. - The home buying market has undoubtedly had a huge impact on both developers and buyers. But homeowners associations are also in the middle caught up in all the mess of the housing crisis.
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Indeed. As I have been saying for the last few years. Thanks to Fred Pilot for this link.
No settlement document here!
Federal Government & Attorneys General reach landmark settlement with major banks | NationalMortgageSettlement
This is the web page for the magic disappearing settlement. See for yourself. As of February 11, 2012, two days after the big deal was announced, there is no settlement document to be found. Why? (see below)...
The Obama administration and the banks did the publicity blitz, and the press dutifully covered it to death, and the pundits pontificated, without the actual terms being part of the discussion. We just had a huge media frenzy over something that we can't really scrutinize. Why? Perhaps because the banks are going to get a much better deal than advertised, and they don't want the public to know. When the real settlement document is released, the deal will be old news and won't get much coverage.
That's my speculation. What's yours?
This is the web page for the magic disappearing settlement. See for yourself. As of February 11, 2012, two days after the big deal was announced, there is no settlement document to be found. Why? (see below)...
The Obama administration and the banks did the publicity blitz, and the press dutifully covered it to death, and the pundits pontificated, without the actual terms being part of the discussion. We just had a huge media frenzy over something that we can't really scrutinize. Why? Perhaps because the banks are going to get a much better deal than advertised, and they don't want the public to know. When the real settlement document is released, the deal will be old news and won't get much coverage.
That's my speculation. What's yours?
Missing Settlement Document Raises Doubts on $25B Deal - American Banker Article
Missing Settlement Document Raises Doubts on $25B Deal - American Banker Article
"More than a day after the announcement of a mammoth national mortgage servicing settlement, the actual terms of the deal still aren't public. The website created for the national settlement lists the document as "coming soon."
"More than a day after the announcement of a mammoth national mortgage servicing settlement, the actual terms of the deal still aren't public. The website created for the national settlement lists the document as "coming soon."
"That's because a fully authorized, legally binding deal has not been inked yet."
==========================
Bet you thought that the announcement of a deal meant there was really a deal. Hah! The joke's on you. And me. And the rest of us. Now the real terms will get no publicity. Clever, don't you think?
Friday, February 10, 2012
Two points! Omaha woman wins in court over basketball hoop
OMAHA, Neb. (AP) - A judge says an Omaha woman can keep the basketball hoop that her homeowners association had fought.
Omaha television station WOWT says (http://bit.ly/AcJKGt) Jill Lewis had the hoop installed for her three sons at their home in Merrifield Village.
The homeowners association took her to court, saying she'd failed to get written permission for the external improvement.
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Early March Madness. What's really crazy is these cases end up in the courts. Can you spell frivolous litigation?
Monday, February 06, 2012
Sacramento Warned by UN On Homeless Issue - Sacramento News Story - KCRA Sacramento
Sacramento Warned On Homeless Issue - Sacramento News Story - KCRA Sacramento
"An appointee to the United Nations Human Rights Council visited Sacramento in 2011 and has sent a letter to Mayor Kevin Johnson advising him of her findings.In the letter, Catarina De Albuquerque reminded Johnson that the human right to safe drinking water and sanitation is a protected freedom. She noted the lack of access to restrooms and water fountains as a concern."
"An appointee to the United Nations Human Rights Council visited Sacramento in 2011 and has sent a letter to Mayor Kevin Johnson advising him of her findings.In the letter, Catarina De Albuquerque reminded Johnson that the human right to safe drinking water and sanitation is a protected freedom. She noted the lack of access to restrooms and water fountains as a concern."
New York Sues 3 Banks Over MERS Mortgage Database - NYTimes.com
New York Sues 3 Banks Over MERS Mortgage Database - NYTimes.com
Attorney General Eric T. Schneiderman of New York sued three major banks on Friday, accusing them of fraud in their use of an electronic mortgage database that he said resulted in deceptive and illegal practices, including false documents in foreclosure proceedings.
Mr. Schneiderman, co-chairman of a new mortgage crisis unit under President Obama, filed a lawsuit against Bank of America, Wells Fargo and JPMorgan Chase in New York State Supreme Court in Brooklyn.
The database, called the Mortgage Electronic Registration System or MERS, was created in the mid-1990s for tracking mortgage ownership. It is a collaboration of top mortgage servicers, mortgage insurers and Fannie Mae and Freddie Mac, the government entities that hold many of the country’s mortgages.
“The mortgage industry created MERS to allow financial institutions to evade county recording fees, avoid the need to publicly record mortgage transfers and facilitate the rapid sale and securitization of mortgages en masse,” Mr. Schneiderman said.
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About time. MERS was created in order for the banks to securitize mortgages and resell them all over the place without paying county recording fees. It is a gigantic, multi-billion dollar fraud. And MERS exemplifies the state of housing finance in this country. It is based on fraud, perjury, and theft by the biggest banks in the nation.
Big cities cautious about privatizing parking after Chicago's effort - Sacramento News - Local and Breaking Sacramento News | Sacramento Bee
Big cities cautious about privatizing parking after Chicago's effort - Sacramento News - Local and Breaking Sacramento News | Sacramento Bee
Chicagoans were outraged when meter rates soared and the machines briefly malfunctioned. The city's inspector general said the $1.15 billion price the city received was way too low. While the operating company says citizen anger has abated, the deal is still viewed in political circles as a mistake.
===================
This tepid article says that despite the Chicago catastrophe, which this reporter just calls a public relations problem, Sacramento is going to do it, too. Most city governments have at least some ability to learn from the failures of others, but not Sacramento, it seems. The rates in Chicago doubled. The payoff to the city was half what it should have been. The city has lost control over its own streets and now has to pay off the private vendor whenever any stretch of road doesn't deliver the money, such as if a block is closed for a street festival. The vendor is a front company for a mysterious sovereign wealth fund. Try getting through them sometime with your complaints.
Thanks to Fred Pilot for the link.
Chicagoans were outraged when meter rates soared and the machines briefly malfunctioned. The city's inspector general said the $1.15 billion price the city received was way too low. While the operating company says citizen anger has abated, the deal is still viewed in political circles as a mistake.
===================
This tepid article says that despite the Chicago catastrophe, which this reporter just calls a public relations problem, Sacramento is going to do it, too. Most city governments have at least some ability to learn from the failures of others, but not Sacramento, it seems. The rates in Chicago doubled. The payoff to the city was half what it should have been. The city has lost control over its own streets and now has to pay off the private vendor whenever any stretch of road doesn't deliver the money, such as if a block is closed for a street festival. The vendor is a front company for a mysterious sovereign wealth fund. Try getting through them sometime with your complaints.
Thanks to Fred Pilot for the link.
Foreclosures Draw Private Equity as U.S. Sells Homes - Bloomberg
Foreclosures Draw Private Equity as U.S. Sells Homes - Bloomberg
Private equity firms are jumping into distressed housing as the U.S. government plans to market 200,000 foreclosed homes as rentals to speed up the economic recovery.
GTIS Partners will spend $1 billion by 2016 acquiring single-family homes to manage as rentals, Thomas Shapiro, the fund’s founder said. That followed announcements this month that GI Partners, a Menlo Park private equity fund, expects to invest $1 billion, and Los Angeles-based Oaktree Capital Management LP will spend $450 million on similar housing.
“It’s a massive market,” Shapiro said in a telephone interview from New York. “We’re starting to see this as a billion dollar opportunity to buy rental housing.”
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It seems that we are making a historic shift toward being a nation of renters.
Sunday, February 05, 2012
Mortgage Tornado Warning, Unheeded - NYTimes.com
Mortgage Tornado Warning, Unheeded - NYTimes.com
"YEARS before the housing bust — before all those home loans turned sour and millions of Americans faced foreclosure — a wealthy businessman in Florida set out to blow the whistle on the mortgage game."
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Nye Lavalle is the subject of this excellent article. Here's how bad the situation was, and note that THIS WAS IN 2003:
In 2003, when home prices were flying high, he compiled a dossier of improprieties on one of the giants of the business, Fannie Mae.
"YEARS before the housing bust — before all those home loans turned sour and millions of Americans faced foreclosure — a wealthy businessman in Florida set out to blow the whistle on the mortgage game."
=================
Nye Lavalle is the subject of this excellent article. Here's how bad the situation was, and note that THIS WAS IN 2003:
In 2003, when home prices were flying high, he compiled a dossier of improprieties on one of the giants of the business, Fannie Mae.
In hindsight, what he found looks like a blueprint of today’s foreclosure crisis. Even then, Mr. Lavalle discovered, some loan-servicing companies that worked for Fannie Mae routinely filed false foreclosure documents, not unlike the fraudulent paperwork that has since made “robo-signing” a household term. Even then, he found, the nation’s electronic mortgage registry was playing fast and loose with the law — something that courts have belatedly recognized, too.
You might wonder why Mr. Lavalle didn’t speak up. But he did. For two years, he corresponded with Fannie executives and lawyers. Fannie later hired a Washington law firm to investigate his claims. In May 2006, that firm, using some of Mr. Lavalle’s research, issued a confidential, 147-page report corroborating many of his findings.
And there, apparently, is where it ended. There is little evidence that Fannie Mae’s management or board ever took serious action. Known internally as O.C.J. Case No. 5595, in reference to the company’s Office of Corporate Justice, this 2006 report suggests just how deep, and how far back, our mortgage and foreclosure problems really go.
Red-light cameras boost coffers, rile drivers
Red-light cameras boost coffers, rile drivers
Anyone in California snapped violating a red light pays a fine of $480, and according to the traffic-watch site TheNewspaper.com, no other jurisdiction anywhere has a tab that high. The second-highest fine in the United States is $250, and it is usually more like $100.
Anyone in California snapped violating a red light pays a fine of $480, and according to the traffic-watch site TheNewspaper.com, no other jurisdiction anywhere has a tab that high. The second-highest fine in the United States is $250, and it is usually more like $100.
Obama’s push to revive middle class will clash with long-term trends - The Washington Post
Obama’s push to revive middle class will clash with long-term trends - The Washington Post
"But it is not clear that the measures — or any others — could compensate for the factors behind the decline of the middle class, including the rise of nations with abundant cheap labor and the development of new technologies that allow companies to operate with far fewer workers. Nor is it clear that the bruised American economy of 2012, with a growing population of retiring workers to support, can sustain a prospering middle class."
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Fred Pilot flagged this long piece on the structural factors that have undermined the middle class, and that make it problematic for any president to try to revive what we had in this country from the end of WWII to the 1980s.
"But it is not clear that the measures — or any others — could compensate for the factors behind the decline of the middle class, including the rise of nations with abundant cheap labor and the development of new technologies that allow companies to operate with far fewer workers. Nor is it clear that the bruised American economy of 2012, with a growing population of retiring workers to support, can sustain a prospering middle class."
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Fred Pilot flagged this long piece on the structural factors that have undermined the middle class, and that make it problematic for any president to try to revive what we had in this country from the end of WWII to the 1980s.
The privatization trap - The 99 Percent Plan - Salon.com
The privatization trap - The 99 Percent Plan - Salon.com
"Rather than solving problems with government, privatization often amplifies those issues to new extremes. Instead of unleashing market innovation, it often introduces new parasitic partners into the decision-making process. Instead of providing a check on the power of the government, it allows the state to circumvent constitutional and democratic accountability measures by merging with the private sector. And ultimately, the practice replaces the set of choices and constraints found in democracy, with another set found in the marketplace. Today’s political conversation is blind to these problems out of a mistaken faith in the efficiency and fundamental equality of markets, contrasted to the ineffectiveness and corruptibility of the state."
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Mike Konczal takes privatization apart and shows how it turns out in practice.
"Rather than solving problems with government, privatization often amplifies those issues to new extremes. Instead of unleashing market innovation, it often introduces new parasitic partners into the decision-making process. Instead of providing a check on the power of the government, it allows the state to circumvent constitutional and democratic accountability measures by merging with the private sector. And ultimately, the practice replaces the set of choices and constraints found in democracy, with another set found in the marketplace. Today’s political conversation is blind to these problems out of a mistaken faith in the efficiency and fundamental equality of markets, contrasted to the ineffectiveness and corruptibility of the state."
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Mike Konczal takes privatization apart and shows how it turns out in practice.
A modern Pecora Commission could right Wall Street wrongs | The Big Picture
A modern Pecora Commission could right Wall Street wrongs | The Big Picture
Great piece from Barry Ritholtz about what should happen in the course of the investigation of mortgage fraud that President Obama announced.
Great piece from Barry Ritholtz about what should happen in the course of the investigation of mortgage fraud that President Obama announced.
Saturday, February 04, 2012
GOP candidates shy away from Nevada housing crisis
GOP candidates shy away from Nevada housing crisis
"This Vegas has not been a major part of the political dialogue this week, as the candidates for the GOP presidential nomination visit the state. While he was in Nevada last fall, former Massachusetts Gov. Mitt Romney, who is far ahead in pre-caucus polls, said it would not be a good idea to "try to stop the foreclosure process. Let it run its course and hit the bottom."
"This Vegas has not been a major part of the political dialogue this week, as the candidates for the GOP presidential nomination visit the state. While he was in Nevada last fall, former Massachusetts Gov. Mitt Romney, who is far ahead in pre-caucus polls, said it would not be a good idea to "try to stop the foreclosure process. Let it run its course and hit the bottom."
CED Lecture Series: Evan McKenzie and Mildred Warner
CED - College of Environmental Design, UC Berkeley
Just participated in this program at UC Berkeley this week. It was a well-organized event with a large and attentive audience. Mildred Warner is a terrific speaker and I had a great time with the give and take.
Just participated in this program at UC Berkeley this week. It was a well-organized event with a large and attentive audience. Mildred Warner is a terrific speaker and I had a great time with the give and take.
Family Faces Eviction Over Toddler's Noise | AOL Real Estate
Family Faces Eviction Over Toddler's Noise | AOL Real Estate
From the UK: ""I can't believe we're going to be made homeless because of a toddler," Baylis told The Sun. "She's just being a toddler and has no idea how loud she's being."
Nexus Housing reportedly claims that Baylis has violated a contract that she signed agreeing to not run up the stairs, to prevent her dog from barking, and to cease to "use" her daughter as an excuse for noise that emanates from her apartment."
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Fred Pilot sent this along.
From the UK: ""I can't believe we're going to be made homeless because of a toddler," Baylis told The Sun. "She's just being a toddler and has no idea how loud she's being."
Nexus Housing reportedly claims that Baylis has violated a contract that she signed agreeing to not run up the stairs, to prevent her dog from barking, and to cease to "use" her daughter as an excuse for noise that emanates from her apartment."
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Fred Pilot sent this along.
I-Team: HOA Investigation Heating Up
I-Team: HOA Investigation Heating Up
"So far, 10 people have entered guilty pleas and have promised to testify against the big fish. In the near future, perhaps a matter of a few days, a dozen or more additional indictments and plea agreements involving mid-level targets are likely to surface. Once they are in place, the focus will shift to the top suspects who raked in millions of dollars."
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Thanks to Shu Bartholomew for this link. This investigation has been going on since 2007, they say, and so far nobody has gone to jail. This may mean that those who pled out will testify against the higher-ups first, and then be sentenced. But how high will this go? The article mentions police officers and attorneys as possible targets of the investigation. Do we have the full picture of this massive, elaborate fraud yet? And when can we watch the TV movie?
"So far, 10 people have entered guilty pleas and have promised to testify against the big fish. In the near future, perhaps a matter of a few days, a dozen or more additional indictments and plea agreements involving mid-level targets are likely to surface. Once they are in place, the focus will shift to the top suspects who raked in millions of dollars."
----------------------
Thanks to Shu Bartholomew for this link. This investigation has been going on since 2007, they say, and so far nobody has gone to jail. This may mean that those who pled out will testify against the higher-ups first, and then be sentenced. But how high will this go? The article mentions police officers and attorneys as possible targets of the investigation. Do we have the full picture of this massive, elaborate fraud yet? And when can we watch the TV movie?
Friday, February 03, 2012
Denmark’s Anarchist Christiania Village Goes Legit Via Fake “Stock Shares” | Disinformation
Denmark’s Anarchist Christiania Village Goes Legit Via Fake “Stock Shares” | Disinformation
After 40 years, Christiania (a car-less, drug-addled autonomous squatter town surprisingly located in middle of urban Copenhagen) will buy the land on which it sits from the Danish government. But how to raise the money? The alternative society is selling symbolic ownership shares, and will have yearly “shareholder parties” which will no doubt be intense
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I think being an anarchist must be pretty tough. Even harder, though--running an anarchist organization. Or not running it, perhaps.
After 40 years, Christiania (a car-less, drug-addled autonomous squatter town surprisingly located in middle of urban Copenhagen) will buy the land on which it sits from the Danish government. But how to raise the money? The alternative society is selling symbolic ownership shares, and will have yearly “shareholder parties” which will no doubt be intense
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I think being an anarchist must be pretty tough. Even harder, though--running an anarchist organization. Or not running it, perhaps.
Wednesday, February 01, 2012
Homeownership ratesfalls to 66% as downturn nears a bottom – USATODAY.com
Homeownership ratesfalls to 66% as downturn nears a bottom – USATODAY.com
Falling homeownership — and prices — reflect the worst housing downturn since the Great Depression. And while there are signs that the housing industry's downturn may at least be nearing a bottom, the impact of the collapse will be evident for years to come, economists say.
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"Nearing a bottom," they say. Maybe not. Mortgage interest rates are absurdly low and they have to go up to at least 6% at some point. When that happens, people will find it harder to buy houses because the cost of money will raise their monthly payments. When money is cheap, demand goes up and that drives prices up. When money is expensive, demand goes down and that drives prices...down. So I think that when mortgage interest rates go up, as they must, housing prices will go down.
And that will increase the financial pressure on home owners, who will see more of their equity disappear. That, in turn, will raise foreclosure rates, which will mean increased economic stress on condo associations and HOAs.
Falling homeownership — and prices — reflect the worst housing downturn since the Great Depression. And while there are signs that the housing industry's downturn may at least be nearing a bottom, the impact of the collapse will be evident for years to come, economists say.
---------------
"Nearing a bottom," they say. Maybe not. Mortgage interest rates are absurdly low and they have to go up to at least 6% at some point. When that happens, people will find it harder to buy houses because the cost of money will raise their monthly payments. When money is cheap, demand goes up and that drives prices up. When money is expensive, demand goes down and that drives prices...down. So I think that when mortgage interest rates go up, as they must, housing prices will go down.
And that will increase the financial pressure on home owners, who will see more of their equity disappear. That, in turn, will raise foreclosure rates, which will mean increased economic stress on condo associations and HOAs.
Monday, January 30, 2012
Freddie Mac Bets Against American Homeowners - ProPublica
Freddie Mac Bets Against American Homeowners - ProPublica
"Freddie Mac, the taxpayer-owned mortgage giant, has placed multibillion-dollar bets that pay off if homeowners stay trapped in expensive mortgages with interest rates well above current rates.
Freddie began increasing these bets dramatically in late 2010, the same time that the company was making it harder for homeowners to get out of such high-interest mortgages."
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Gee. I wonder if there could be a connection between Freddie making it hard to refinance at lower rates, and Freddie selling mortgages and keeping only the income stream from the interest income?
Saturday, January 28, 2012
Blog.AnthemVOICE.Org — Defending HOMEOWNER Rights in Sun City Anthem, Henderson, NV
Blog.AnthemVOICE.Org — Defending HOMEOWNER Rights in Sun City Anthem, Henderson, NV
A new homeowner rights weblog. Thanks to Free Pilot for letting me know about it.
A new homeowner rights weblog. Thanks to Free Pilot for letting me know about it.
PleasantonWeekly.com : New HOA laws impact homeowners
PleasantonWeekly.com : New HOA laws impact homeowners
From rental restrictions to electric vehicles and electronic meeting notices, Californians living in homeowners associations are seeing several new laws governing their communities that took effect Jan. 1.
The California Association of Community Managers reports that one out of every three Californians lives in a homeowners association.
One of the most significant of the new laws was state Senate Bill 150, which prohibits associations from restricting owners' abilities to rent their properties unless a rental restriction was in place before the owner purchased the property. This section of the bill applies to a governing document provision that becomes effective on or after Jan. 1, 2012. The law requires owners to provide a statement describing any applicable rental restriction to potential buyers.
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Thanks to Fred Pilot for the link to this summary of the new HOA/condo laws. There are quite a few this year.
From rental restrictions to electric vehicles and electronic meeting notices, Californians living in homeowners associations are seeing several new laws governing their communities that took effect Jan. 1.
The California Association of Community Managers reports that one out of every three Californians lives in a homeowners association.
One of the most significant of the new laws was state Senate Bill 150, which prohibits associations from restricting owners' abilities to rent their properties unless a rental restriction was in place before the owner purchased the property. This section of the bill applies to a governing document provision that becomes effective on or after Jan. 1, 2012. The law requires owners to provide a statement describing any applicable rental restriction to potential buyers.
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Thanks to Fred Pilot for the link to this summary of the new HOA/condo laws. There are quite a few this year.
Friday, January 27, 2012
World's Worst Dad Candidate Thought It Was A Good Idea To Leave Son Behind In Foreclosed House - The Consumerist
World's Worst Dad Candidate Thought It Was A Good Idea To Leave Son Behind In Foreclosed House - The Consumerist
Parenting doesn't get any worse than this. Leave the 11 year old son a Playstation and a note that says "You know your dad loves you more than anything." Right. And then the cops spend five weeks looking for him. Thanks to Mystery Reader for this depressing saga.
Parenting doesn't get any worse than this. Leave the 11 year old son a Playstation and a note that says "You know your dad loves you more than anything." Right. And then the cops spend five weeks looking for him. Thanks to Mystery Reader for this depressing saga.
BBC News - Unwanted homes in Irish Republic could be demolished
BBC News - Unwanted homes in Irish Republic could be demolished
They have been called the 'ghost estates' of the Irish Republic - about 300,000 homes built in the frenzy of the property boom that no-one wants to live in now.
Soon, many brand new houses could be demolished.
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Watch this video and see how the Irish were fleeced by developers and realtors.
Thursday, January 26, 2012
Woman claims condo energy efficient windows are melting her car
http://losangeles.cbslocal.com/2012/01/25/woman-claims-neighbors-energy-efficient-windows-are-melting-her-toyota-prius/
STUDIO CITY (CBS) — A SoCal woman says the energy efficient window installed in a neighbor’s condominium is melting the plastic components on cars parked in her carport.
Heather Patron of Studio City was dealing with a mystery regarding her Toyota Prius.
“The side view mirrors were melting,” says Patron. “Anything that was plastic on the car was melting.”
STUDIO CITY (CBS) — A SoCal woman says the energy efficient window installed in a neighbor’s condominium is melting the plastic components on cars parked in her carport.
Heather Patron of Studio City was dealing with a mystery regarding her Toyota Prius.
“The side view mirrors were melting,” says Patron. “Anything that was plastic on the car was melting.”
Legislation would let insured pet owners keep dogs off leash
Legislation crafted by Sen. Lori Klein, R-Anthem, would say that county ordinances which now require dogs in public parks and on public lands to be on a leash do not apply if the owner has at least $50,000 worth of liability coverage. Klein said there is no reason that owners of responsible, well-behaved dogs should not be allowed to let them run free.
But Klein is specifically annoyed by leash law rules of homeowner associations. And she said her legislation, SB 1065, would preclude HOAs from citing homeowners under rules that forbid a dog from sitting, unleashed, in an unfenced front yard.
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Alternative headline: State legislation would preempt Privatopian pooch on porch prohibition.
Monday, January 23, 2012
Government Prevents 101-Year-Old Evictee From Moving Back Home - The Consumerist
Government Prevents 101-Year-Old Evictee From Moving Back Home - The Consumerist
Four months ago, a 101-year-old Detroit woman was evicted from her home because her son could no longer afford payments. The U.S. Department of Housing and Urban Development stepped in and said she go back home, but has now reversed course, deeming the residence unfit to live in.
She tells The Detroit News "Here I am, 100 years old (rounding her age), and don't have a home. Oh Lord, help me."
Now that the HUD controls the property, officials say the house is beyond repair and the department won't pay the cost to get it up to code. The department is looking for alternatives, but for now the woman has no permanent home as she crashes with a friend.
She lived in the house for nearly 60 years, but lost control when she entered into a reverse mortgage. Her sad plight serves as a warning sign for retirees who think a reverse mortgage may be an easy fix to their financial problems.
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Here's the original article from the Detroit News.
Four months ago, a 101-year-old Detroit woman was evicted from her home because her son could no longer afford payments. The U.S. Department of Housing and Urban Development stepped in and said she go back home, but has now reversed course, deeming the residence unfit to live in.
She tells The Detroit News "Here I am, 100 years old (rounding her age), and don't have a home. Oh Lord, help me."
Now that the HUD controls the property, officials say the house is beyond repair and the department won't pay the cost to get it up to code. The department is looking for alternatives, but for now the woman has no permanent home as she crashes with a friend.
She lived in the house for nearly 60 years, but lost control when she entered into a reverse mortgage. Her sad plight serves as a warning sign for retirees who think a reverse mortgage may be an easy fix to their financial problems.
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Here's the original article from the Detroit News.
Mortgage Principal Cuts Don’t Help Homeowners - Bloomberg
Mortgage Principal Cuts Don’t Help Homeowners - Bloomberg
Reducing mortgage balances is a risky idea that hasn’t been shown to keep borrowers who owe more than their property’s worth in their homes, according to Credit Suisse Group AG. (CSGN)
Of the 11 million of “underwater” homeowners, about 6.5 million have never missed a payment and 2 million more are making on-time payments after a delinquency, said Dale Westhoff, the bank’s global head of structured products research. Widespread principal reductions may drive defaults “much, much higher” as borrowers seek the aid, he said.
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And of course the banking industry would have a totally objective view of this idea...
Reducing mortgage balances is a risky idea that hasn’t been shown to keep borrowers who owe more than their property’s worth in their homes, according to Credit Suisse Group AG. (CSGN)
Of the 11 million of “underwater” homeowners, about 6.5 million have never missed a payment and 2 million more are making on-time payments after a delinquency, said Dale Westhoff, the bank’s global head of structured products research. Widespread principal reductions may drive defaults “much, much higher” as borrowers seek the aid, he said.
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And of course the banking industry would have a totally objective view of this idea...
Sunday, January 22, 2012
FHA lending rules: Condo buildings - chicagotribune.com
FHA lending rules: Condo buildings - chicagotribune.com
Since Feb. 1, 2010, condo buyers haven't been able to secure unit-by-unit "spot" approval for FHA-backed mortgages if an entire building was not certified. Instead, the federal government set criteria to determine the financial viability of an entire building before deeming the project as FHA-approved, even if it had previously been certified. An approval lasts two years.
The number of rejected buildings is adding up, due to bad paperwork and bad balance sheets as an increasing number of condo associations struggle with rentals, short sales and foreclosures. It is jeopardizing the plans of condo sellers who rely on the FHA's stamp of approval as a marketing tool and condo buyers who either want or need an FHA-approved building.
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This is a huge problem not just with FHA loans but with Fannie Mae certification, which is also building by building.
Since Feb. 1, 2010, condo buyers haven't been able to secure unit-by-unit "spot" approval for FHA-backed mortgages if an entire building was not certified. Instead, the federal government set criteria to determine the financial viability of an entire building before deeming the project as FHA-approved, even if it had previously been certified. An approval lasts two years.
The number of rejected buildings is adding up, due to bad paperwork and bad balance sheets as an increasing number of condo associations struggle with rentals, short sales and foreclosures. It is jeopardizing the plans of condo sellers who rely on the FHA's stamp of approval as a marketing tool and condo buyers who either want or need an FHA-approved building.
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This is a huge problem not just with FHA loans but with Fannie Mae certification, which is also building by building.
Van Jones: Obama Must Choose on Housing: A Sweetheart Deal for the 1% or a Fair Deal for the 99%
Van Jones: Obama Must Choose on Housing: A Sweetheart Deal for the 1% or a Fair Deal for the 99%
Rumor has it that on Monday, after months of negotiation with big banks, the White House may announce a settlement that would let the banks off the hook for their role in the foreclosure crisis -- paying a tiny fraction of what's needed in exchange for blanket immunity from future lawsuits.
We hope these rumors are untrue.
President Obama has the ability to stop and change the direction of this sweetheart deal. He should reject any deal that benefits the one percent and lets the big banks get away with their crimes. Instead, the president should stand with the 99 percent and push for real accountability and a solution that will help millions of people in this country.
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From Van Jones, who was Obama's Green Jobs Czar until the right wingers went after him on AM radio and Fox News.
Rumor has it that on Monday, after months of negotiation with big banks, the White House may announce a settlement that would let the banks off the hook for their role in the foreclosure crisis -- paying a tiny fraction of what's needed in exchange for blanket immunity from future lawsuits.
We hope these rumors are untrue.
President Obama has the ability to stop and change the direction of this sweetheart deal. He should reject any deal that benefits the one percent and lets the big banks get away with their crimes. Instead, the president should stand with the 99 percent and push for real accountability and a solution that will help millions of people in this country.
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From Van Jones, who was Obama's Green Jobs Czar until the right wingers went after him on AM radio and Fox News.
Florida governor turns his attention to special taxing districts
It's difficult to tell what kind of impact, if any, the review and staff's recommendations will have on community development districts. However, Scott likely won't dismantle the districts, which by state law are designed to help developers defray the cost of infrastructure and other services. These agencies can issue bonds, dividing the cost among property owners. In other words, they're contracts between the developers and property owners.
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Here we go again with local government being incorrectly equated with a contractual arrangement. It is not and moreover lacks the necessary elements of a legal contract regardless of whether the framework is a private nonprofit corporation as is the case with mandatory membership homeowner associations or a public entity such as a special district.
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Here we go again with local government being incorrectly equated with a contractual arrangement. It is not and moreover lacks the necessary elements of a legal contract regardless of whether the framework is a private nonprofit corporation as is the case with mandatory membership homeowner associations or a public entity such as a special district.
Homeowners association pursues extreme option — foreclosure — against Korean War veteran
A measly $338.91.
That's how much Sherman McCray owed his homeowner association when the board of directors foreclosed on his Clermont house.
Of course, the debt wasn't just $338.91 by the time a Lake County judge on Jan. 3 ordered the 81-year-old Korean War veteran's home sold.
Oh, no. Between 2010 when McCray failed to pay a homeowners assessment and that final hearing, the all-powerful homeowner association in the Vistas subdivision had levied late fees, costs and interest, and it had busied itself running up absurd lawyer bills by sending threatening letters at every turn.
Total cost now: $4,272.24.
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The commentary describes this as yet another sickening tale of diabolical, petty homeowner associations in South Florida and asks why the HOA would exercise a punitive option against an elderly disabled veteran obviously overwhelmed by health troubles and without a thorough understanding of the rules. McCray clearly needs an advocate to help him navigate the dangerous legal minefield that's Privatopia.
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