Halloween yard displays go over the top

It's that time of year again, when people decorate their homes in traditional fashion with simulated bloody torture victims wrapped in plastic. Nothing says Halloween like somebody nailed to a cross upside down in the front yard, with syringes jabbed into his neck. At least, that's what some people think. And then the neighbors freak out. No doubt the HOAs will soon swing into action. Personally I generally settle for a few pumpkins, which makes me popular with the squirrels.

http://www.complex.com/pop-culture/2015/10/graphic-halloween-decorations-too-real?utm_source=fijifrost%20facebook&utm_medium=social&utm_campaign=cmcm&utm_content=inf_20_19_2 

Private dams = bad infrastructure

The US media love to run any story from anti-government propagandists about anything a local government does wrong. But look how they ignore the failures of privatization. Most of the nation's dams are privately owned and many of them are supposed to be maintained by HOAs. Here's a rare story where, if you read down far enough, you can get to the point. Developers built thousands of dams, didn't build them right, and private associations have been maintaining them, with results that are not impressive, as evidence by recent events in South Carolina: "...while states might pay or contribute to the repairs of those dams that are publicly-owned, most dams in the country are privately owned, which puts the onus on private parties and associations."

http://www.npr.org/2015/10/11/447181629/aging-and-underfunded-americas-dam-safety-problem-in-4-charts utm_source=facebook.com&utm_medium=social&utm_campaign=npr&utm_term=nprnews&utm_content=2036

Condo owners to dump Trump

Trust fund baby and pseudo-populist charlatan Donald Trump is involved in lots of condo deals. Some say that he is no longer a real estate developer in the true sense of the word, and hasn't been since the early 1990s. Now he makes big bucks renting his name for other people's projects, which leads lots of ignorant, gullible rubes to buy in (probably the same dunces who think he'd make a great president).  If things go south and the project never gets built out, and the lawsuits rain down, he just says he was only paid to put his name on the development and has no responsibility. Here's another lawsuit with some troubling allegations:

http://talkingpointsmemo.com/news/florda-condo-owners-trump

"The building's residents and condo owners had invested in the namesake, a 70-story waterfront tower along Panama Bay, on the strength of Trump's reputation. But during the four years that Trump Panama Condominium Management LLC had managed the property, Central America's largest building, a team installed by the Trump family was accused of running up more than $2 million in unauthorized debts, paying its executives undisclosed bonuses and withholding basic financial information from owners.

The Trumps had done all of this through fine-print chicanery, the board said. A clause in many residents' purchase agreements prevented them from voting against the Trump company's wishes. That allowed the Trumps to install their top employee as chairman and the residents' representative on the board — even though the Trumps' actual stake in the building's residential area was merely a storage closet on the 15th floor."

Why I've been off the air

I've been keeping up this blog since 2003, but this summer I went off the air for several months because of some events that absorbed a great deal of my time and energy.  My mother died in July at the age of 93, in Pasadena, California. I became the executor of her affairs, there have been many things to attend to, and the emotional side of a loss like that is never easy, as I'm sure you know.

At the same time, through a chain of unusual circumstances I ended up teaching an intensive summer course on urban politics at UIC. Then on the heels of that, I went to Australia for a week to give the keynote address at a conference on condominium housing (which they call "strata title").  This was a fantastic conference in an amazing country, but by the time I returned I was behind in my work. To add the final straw, I was made head of the Political Science Department at the University of Illinois at Chicago, and I've been on the learning curve with those additional responsibilities, in addition to teaching two Fall courses with a total of 172 students.

All three of my children started at new universities--two as freshmen and one as a graduate student--and that meant move-outs and move-ins.  I certainly logged some travel miles--this summer I had trips to Israel, Australia, Phoenix (driving back with my oldest son in a 1997 Nissan Pathfinder with 200,000 miles and no air conditioning, in July), Los Angeles, and Springfield, IL.

So that is why I haven't been able to stay current with this blog--but I hope people will continue to send me items, because I'm back on the air.

Is living in a steel box the future of housing?

Coming to a condo association near you, someday?

http://www.theguardian.com/cities/2015/oct/09/living-steel-box-shipping-containers-future-housing

South Carolina: HOAs do a terrible job maintaining dams, causing massive flooding

I've been away from this blog for quite a while because events in my life made it hard for me to focus on it. I have a lot to report on and I'll try to get to it over the next week or so.

First up:  the media has reported extensively on the massive flooding in South Carolina. One angle hasn't been reported much, even though it is at the heart of the problem.  South Carolina is one of these states where they brag about how low their taxes are and how useless government is. But the reason the flooding is so bad is...privatization. They keep taxes low by not spending much public money on maintaining infrastructure like, oh...dams, for instance. Instead they trust developers to build them, and homeowners' associations to maintain them.  And surprise, surprise!  Many HOAs are doing a perfectly terrible job of maintaining the earthen dams that keep water from wrecking other people's neighborhoods.


http://www.thestate.com/news/local/article38043186.html

Feds fighting to keep Las Vegas HOA fraud files secret

"Federal prosecutors are fighting to keep secret the mass of evidence in the long-running investigation into the scheme to take over and defraud homeowners associations. Lawyers with the Justice Department’s Fraud Section in Washington filed court papers late last week opposing the Las Vegas Review-Journal’s request to dissolve two protective orders that withhold documents in the high-profile case from the public. Attorney Maggie McLetchie, representing the newspaper, argued in court filings June 9 that the public has a right to see the evidence, most of which has long ago been turned over to defense lawyers. With most of the 42 convicted defendants sentenced, the epic case is essentially over."

http://www.reviewjournal.com/news/las-vegas/feds-fighting-keep-las-vegas-hoa-fraud-files-secret

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Kind of makes you wonder what they don't want the public to see, doesn't it?  Permit me to do a bit of speculating. I have no special inside knowledge of any of this, but I have read the press coverage carefully, particularly Jeff German's exceptional reporting for the Review-Journal. 

When the scandal first became public, a number of story lines popped up briefly in the press and then were submerged as the prosecution went forward and the focus shifted to the way the case was unfolding, day to day.  I think these unresolved story lines are why the Review-Journal is after the records, and that may be why the DOJ is fighting to keep them secret.  For example:

1.  Did anybody in the justice system--prosecutors or judges, perhaps--tip off the fraudsters about what was happening inside the investigation?  There were stories suggesting that this may have happened.

2. Why did the DC office of the DOJ take the case away from the local US Attorney's office?  Why did the private attorney who blew the whistle on all this have to do his own investigation and present it to the government gift-wrapped in order for anything to happen?

3. Was this ring--with 42 convictions--not the whole operation? Were there other people involved who didn't get prosecuted?  

4.  Was this ring linked to organized crime at a higher level, as in what we call here in Chicago "The Outfit"?  There were suggestions of that in the press early on, but that angle was not pursued in the DOJ's case.

5. Are there other HOAs and other HOA vendors in Las Vegas or nearby where the same sorts of things are going on, but without prosecution or even investigation?  What turned up in the investigation regarding how prevalent HOA takeover by contractors, and sweetheart deals, really are, in Vegas and elsewhere?

So I hope and trust that the court will open up this investigation so we can have answers to these and maybe other questions.

Man Who Created The Pink Plastic Lawn Flamingo Dies : The Two-Way : NPR

Man Who Created The Pink Plastic Lawn Flamingo Dies : The Two-Way : NPR



"If you've got a plastic pink flamingo on your lawn, give it a pat on the back. The man who designed the lawn art, Donald Featherstone, has died. He was 79."

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That's quite a legacy. The symbol of the homeowners' rights movements, too.

Dying woman who turned her yard into a giant SANDBOX so she didn't have to mow the lawn threatened with jail if she does not clean it up

http://www.dailymail.co.uk/news/article-3136072/Dying-woman-turned-yard-giant-SANDBOX-didn-t-mow-lawn-threatened-jail-does-not-clean-up.html

"A Missouri woman who says she has about six months to live has been threatened with jail time and fines if she does not remove the sand in the front yard of her home.
Georgianna Reid has lived in her home in Brookside, Kansas City, for more than 33 years, but covered the front of the house with 80 tonnes of sand three years ago, in an operation that cost her $4,000.

'I would say I'm putting in the largest litter box in the world,' said Reid of her unusual approach to landscaping last year.

But the local council and her neighbors don't see it as the beach-like oasis Reid does/Reid received a letter from the city that said she has 10 days to remove the sand from her yard or she will face up to 180 days in jail and a $1,000 fine, KSHB reported.'I called the city, I asked permission, not once but twice,' Reid told the network.She said she gave the yard a facelift because she had grown tired of mowing and watering it."

Read more: http://www.dailymail.co.uk/news/article-3136072/Dying-woman-turned-yard-giant-SANDBOX-didn-t-mow-lawn-threatened-jail-does-not-clean-up.html#ixzz3dvDOX57P
Follow us: @MailOnline on Twitter | DailyMail on Facebook

Read more: http://www.dailymail.co.uk/news/article-3136072/Dying-woman-turned-yard-giant-SANDBOX-didn-t-mow-lawn-threatened-jail-does-not-clean-up.html#ixzz3dvDOX57P Follow us: @MailOnline on Twitter | DailyMail on Facebook"
----------------------------
She says she'll take the sand out of the yard as ordered, but she's going to replace it with asphalt. Prepare for Round Two...

Israel conference on residential private governmnet

I just got back from the Interdisciplinary Center at Herzliya, Israel, (known as IDC Herzliya) where I attended a conference on private communities and presented a paper. It was a wonderful experience in many ways, because I made new friends, learned a great deal about  what is happening with common interest housing in other nations, and visited Israel for the first time. You can read about it by following the link below. We are producing a book from all the papers we wrote, and there will be more research to come after that.  These were mostly lawyers and law professors, which is a different network than the urban planners, geographers, and social scientists who populate the other international network of private government scholars I'm associated with.

Here are a few notes:  Insolvency of condominium associations is a significant  problem in other nations--it isn't just a US problem.  And owners are ultimately liable for the debts of their associations in other nations, not just the US.  Most US condo and HOA owners don't know they are potentially on the hook for their associations debts, by the way.  In Spain, everybody has to rotate as a BOD member, like it or not.



http://gazit-globe.idc.ac.il/en/announcements/international-conference-private-communities-and-urban-governance-theoretical-and-c

How the rise of gated spaces like swimming pools can quietly perpetuate racial tension - The Washington Post

How the rise of gated spaces like swimming pools can quietly perpetuate racial tension - The Washington Post

This horrible McKinney, Texas, incident, with a cop brutalizing and menacing black kids while white people saunter around and manhandle the teenagers themselves, is instructive.  It is no accident that it happened in an HOA, nor was it an accident that Trayvon Martin was shot to death by "neighborhood watch volunteer" George Zimmerman in an HOA. These associations first became popular in the US as a way to enforce contractual bans on selling homes to African-Americans. And after Brown v. Board of Education in 1954 banned separate but equal public accommodations, private swimming pools became available (for only the white residents) in your local HOA. The boom in HOAs began in the years immediately following the Brown decision, and one factor was that the real estate industry decided this was a way they could continue making money peddling racial segregation. There were other factors, but segregation was, and still is, one of the reasons so many white people want to live in private and especially gated communities.



"As Yoni Appelbaum points out over at The Atlantic, this context is particularly freighted: For decades, swimming pools in America have been sites of racial exclusion. Many of the fights to desegregate communities and public resources in the 1950s were waged over access to swimming pools. And the way they're used to this day still reflects a sweeping trend — more subtle in its exclusion but no less pervasive — that arose from that era. As public resources were desegregated in American cities, communities increasingly found ways to privatize them. In McKinney on Saturday, the black teens were not using a public pool. They were swimming, rather, in the communal pool of a private community in the predominantly white part of town where civic resources like parks and pools are funded directly by homeowners."

VT woman builds 60-foot by 24-foot 'screen' to block view of neighbor's home | Local News - WPTZ Home

VT woman builds 60-foot by 24-foot 'screen' to block view of neighbor's home | Local News - WPTZ Home


This is a new one: fabric privacy screens for homes. It's only a matter of time before they come to Privatopia and join flagpoles, flags, swingsets, clothelines and treehouses as the latest battlefront between the HOA commissars and inmates.

'Naughty Neighbors' face HOA lawsuit in Parker County

http://www.wfaa.com/story/news/local/2015/06/02/naughty-neighbors-faces-hoa-lawsuit-in-parker-co/28388783/

So it turns out that a swingers club operating out of a 4000 square foot home in a gated community is a business, according to this HOA.

The suit argues that the late-night parties are business operations because charges of up $75 per couple are listed on advertisements for the events.

HOA policy doesn't allow for businesses within the neighborhood. Specifically, the petition states that Carter is "...operating a business in violation of the Covenants which has become obnoxious, offensive, an annoyance, and a nuisance to the neighborhood, which is also a violation of the Covenants."

Other neighbors who spoke with News 8 but asked not be identified also expressed concern about the nature of the parties, and about the noise and clientele driving through the neighborhood late at night.

It wasn't immediately clear if the operation violates any county ordinance.

The lawsuit asks for an injunction, as well as attorney's fees and unspecified damages.

Vendors Flood Market with HOA Super-Lien Services | News

Vendors Flood Market with HOA Super-Lien Services | News

"Laws that give homeowners association debts "super lien" priority over all other claims have been a long-standing threat to servicers. But it wasn't until a pair of recent court rulings came out in favor of HOAs that industry vendors started to look at their existing data and technology to develop products for servicers to manage these risks. There are super lien laws on the books in 21 states, plus Washington, D.C. Historically, they've rarely been invoked, but when they are, the results can be devastating for mortgage debt holders. In a Nevada case ruled on last year, the first-lien mortgage holder lost its claim to an $885,000 debt because of $6,000 in delinquent HOA dues. "That gave everybody the awareness that this is not something that they should take lightly," said Ann Song, vice president of REO management for LRES, an industry vendor that recently launched HOA lien services for originators, servicers and investors...Vendors that have flooded the market with super lien-related products include Black Knight Financial Services, CoreLogic and LRES, as well as a partnership that incorporates services from MMREM and Equifax. The vendors all say their services can identify properties subject to super-lien laws and check for active HOA liens. LRES and MMREM will also help servicers negotiate HOA lien disputes. (The two vendors are both REO management companies, while LRES also has an appraisal services unit.)"

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Superlien statutes give HOA/condo association liens for unpaid assessments priority over the first mortgage, at least in some amount. They vary from state to state.  The idea is to protect the association from having its entire lien wiped out when the bank forecloses on the first mortgage and there is nothing left over to pay the association for unpaid assessments prior to the foreclosure.  The solvency of community associations hit the radar screen of policy makers since the crash of 2008. Foreclosures wrecked a lot of homeowners' lives and also left an enormous number of associations in terrible financial shape.

Many earthen dams on private property are behind on repairs | The Columbus Dispatch

Many earthen dams on private property are behind on repairs | The Columbus Dispatch

"Almost 43 percent of the high-hazard earthen dams in Ohio are on private land — about 200 in all. They’ve been designated as such because if the dams fail, people who live in the water’s path likely will die. Like those owned by the state, private dams pose a serious threat in part because the Ohio Department of Natural Resources, the state agency that inspects dams, goes easy on dam owners. It lets some dams remain dangerous for decades as it tries to negotiate repairs. Owners also are to blame: They often are ignorant about dam safety and lack money for repairs. “I think people are not aware of the liability that comes with the dam. ... There’s potential for great disaster, and people don’t realize that,” said Hans Gottgens, a professor of environmental sciences at the University of Toledo who has studied dam failure."

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The condition of public infrastructure in this country is deplorable, and private infrastructure may be even worse.  But we are doing a great job of blowing up infrastructure in other countries and then paying private contractors to rebuild it. So there's that.  Thanks to Deborah for this link.  By the way, take a look at this list of high speed rail miles of track by country and see where USA ranks. This is what happens when a country is run by people who think the only proper roles of government are to make war and to serve as a source of plunder for the rich.

How California Homeowners Are Dealing with Drought | Digital Trends

How California Homeowners Are Dealing with Drought | Digital Trends

"Per the new regulations, watering lawns within 48 hours of “measurable” rainfall is a finable offense. Some people are forgoing their lawns all together, either following the State Water Resources Control Board’s urgings to let the die or finding creative solutions. Some are painting their lawns green. Others are ripping them up and putting in artificial turf (to the dismay of homeowners associations) or shrubs and plants that thrive in drought conditions (known as xeriscaping), thanks to rebates available in some areas."

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Maybe the political system's reflexive deference to HOA regulations has finally run out, along with the state California's water supply. After all these decades of state legislatures and courts acting like the whims of some long-gone developer and his lawyer are holy writ, it would be nice to see some recognition that private law-making is subordinate to public policy.

Franklin HOA settles suit after denying room for disabled kids

Franklin HOA settles suit after denying room for disabled kids



File this one in the "some people never learn" category:



"A Franklin homeowners association has agreed to pay $156,000 to parents who said they were unfairly barred from building a therapeutic space for their two children with Down syndrome. The specially designed sun room would have been a place for Charles and Melanie Hollis' young kids to play and receive physical therapy, but the Chestnut Bend Homeowners Association denied their request to construct it based on concerns about the way the addition would look, a 2012 federal lawsuit alleged. That, the lawsuit said, constituted discrimination and a violation of the Fair Housing Act, which makes it illegal for agencies to turn down what are called "reasonable modifications" that make it possible for residents with disabilities to more fully enjoy their homes."

Homeowners sue Barrington Hills after tree dispute bars them from moving in - Barrington Courier-Review

Homeowners sue Barrington Hills after tree dispute bars them from moving in - Barrington Courier-Review



"Homeowners have sued the village of Barrington Hills after being denied permission to move into their newly built mansion because of a dispute over the number of trees on the property. Najamul and Nausheen Hasan built a 9,200-square-foot estate on a five-acre lot they purchased in 2007, but they sued last week after they were recently denied an occupancy permit by the village. The Hasans claim in the suit that the village's tree ordinance — spelling out how builders must replace the trees that they remove during construction — is unconstitutional. They also say their civil rights are being violated, and that the matter is "of an emergency nature" because they have leased their residence in Hoffman Estates after being told by the village's building officer that they would be granted a temporary occupancy permit. The temporary permit for occupancy was later denied."

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This complicated dispute about the number and species of trees that the Hasans are supposed to plant, to replace the ones they cut down during construction, all started when the president of the HOA contacted the village of Barrington Hills.  She says she "speaks for the trees."  Remember the Lorax, from Dr. Seuss? That's what he said. One of my favorite stories, by the way--not to take sides in this Barrington Hills tree saga.

Foreclosure scam ordered to repay $11M to distressed homeowners | TheHill

Foreclosure scam ordered to repay $11M to distressed homeowners | TheHill



"The lawyers behind a foreclosure scam were ordered Friday in federal court to repay more than $11 million that it took for vulnerable homeowners. The Consumer Financial Protection Bureau and the state of Florida accused the scammers, led by the Hoffman Law Group, of tricking distressed homeowners into joining frivolous lawsuits that would supposedly provide foreclosure relief."

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After the housing market crashed in 2007-08, a whole lot of "foreclosure rescue" businesses were set up. Many of them were nothing more than fraud rings and they operated for years--with many still in business.  It's a great example of how little our policy makers care about homeowners and how much they care about banks.

New law aims to lift artificial turf ban on HOA property | FOX5 San Diego – San Diego news, weather, traffic, sports from KSWB

New law aims to lift artificial turf ban on HOA property | FOX5 San Diego – San Diego news, weather, traffic, sports from KSWB



"CHULA VISTA, Calif.  — On the heels of new water regulations that start Monday across San Diego, one answer to California’s massive drought may come in the form of something fake. There’s a turf war brewing over a bill making its way to the State Senate. The bill would make it illegal for homeowners associations (HOAs) to prohibit fake turf."

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This has passed the Assembly. If it passes the Senate, I hope the Governor signs it this time.

HOA tows heart attack victim's car from neighborhood - News3LV

HOA tows heart attack victim's car from neighborhood - News3LV



"Virginia says she also heard her car was towed because it was in the same spot for more than 72 hours. "Just because my mom doesn't drive her vehicle very often, doesn't give them the right to tow it," says Jason Lenderman, Virginia's son."

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Of course this story doesn't have all the facts, but this sounds like one of those all-too-common situations where the owner is outraged and the media coverage implies that the association is being unreasonable, but when all is said and done the association has the law on its side and they can do this is if they want to.  So it's just a question of whether they want to put up with the bad press.  

The Supreme Court Could Transfer A Lot Of Political Power Away From Cities | FiveThirtyEight

The Supreme Court Could Transfer A Lot Of Political Power Away From Cities | FiveThirtyEight



The conservative majority on the Supreme Court seems to have decided that they need to get their thumb on the scale of partisan politics. They have destroyed campaign finance regulation, they gutted the Voting Rights Act, and now they have two redistricting cases that could give the Republicans a huge advantage--which they just happen to need, because their voters are dying off. Coincidence? Sure.

Las Vegas HOA takeover fraud ring sentencings

There are many sentencings going on this week in the multi-million dollar Las Vegas HOA takeover fraud prosecution.  I believe the number of people convicted stands at 38, and they include attorneys and former police officers.  I will post a summary of these sentences when the dust settles.

Man charged in $4.1 million condo fraud

Man charged in $4.1 million condo fraud



Oh, Canada:



"A St. Catharines man has been charged with defrauding 13 Hamilton and Burlington condominium corporations of $4.1 million. Police say Brett Mackenzie Leahey, 45, acted as the owner/operator of Integrated Condominium Management, a property management firm responsible for servicing and managing the finances of 10 condominium corporations in Burlington and three in Hamilton."

Using Drones To Enforce HOA Violations

Using Drones To Enforce HOA Violations

See the article below, in which I guess nobody knows whose drone is involved. But be aware that the CID industry, which is basically a whole lot of businesses who want to sell their services and products to HOAs and condo associations, is thinking about droning it up.  Ward Lucas thinks so. See this article from HOA Institute, which I think is by attorney Clint Goodman:



"Since the spike in private ownership of remote-controlled drones, more of us are asking whether homeowners associations can (or should) be using drones to enforce HOA violations.  There are mixed feelings about HOA drones.  Some are worried about privacy.  Others think their use will lead to abuse and “unreasonable enforcement” because it has too much of a “big brother” feel.  Others believe that technology is supposed to make life easier and having drones for their HOA’s code enforcement will significantly reduce the time and expense traditional enforcement brings.  Whatever your opinion is, when (not if) drone enforcement becomes a reality, associations need to be careful that the association uses them with prudence. Right now HOAs cannot use drones “commercially” without FAA approval.  Whether enforcement drones in HOAs are considered “commercial use” depends on who is using them and how.  For example, use of a drone is likely not “commercial” if it is privately owned by the President and used by the President or another director without pay.  Conversely, hiring a company to use drones for code enforcement may cross the line, at least right now.  If Amazon can get permission to do it, I have a feeling we will see the use of drones in the commercial context across the board very soon."

Homeowner’s association puts end to family’s ministry - The Newnan Times-Herald

Homeowner’s association puts end to family’s ministry - The Newnan Times-Herald



This nice Christian family started a volunteer project to collect and distribute household items to needy families, and eventually they incorporated it as a not-for-profit. That's when the HOA struck:



“We started, literally, out of our garage, collecting items. We got a P.O. box, we rented a storage unit which filled up rather quickly,” he said. They have storage space at their church, Vineyard, for linens, a food pantry at Turin United Methodist, and mattresses and beds in the storage unit.



Everything else went into their garage. But not anymore. The Novaks were recently cited by their homeowner’s association for conducting a business out of their home.



The citation, issued April 9, said, “Please do not conduct a business out of your home.”

Exclusive: Brickell Key Woman Says Drone Spied On Her As She Breastfed « CBS Miami

Exclusive: Brickell Key Woman Says Drone Spied On Her As She Breastfed « CBS Miami



"MIAMI (CBSMiami) — Imagine you’re in the privacy of your own home — possibly in a compromising position — and you turn around and  see a drone just a few feet from you. A Brickell Key woman says that’s what happened to her while she was breastfeeding her child earlier this week inside the family’s 12th floor condo."

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I guess with this technology available now we are going to need new laws to protect us, and that's what is happening in Florida:

"Alessi’s privacy concerns are real, says Michelle Richardson with the American Civil Liberties Union. Richardson pointed to a new Florida law that will go into effect this summer — called the “Freedom from Unwarranted Surveillance Act” as a good first step towards regulating drones. Richardson said the law will impose civil penalties on drone users that capture images of unknowing people on private property where a person has a reasonable expectation of privacy. “When you’re talking about looking into people’s homes and violating individual privacy, it’s an unchartered area,” Richardson said. “And we’re really doing this for the first time in Florida.”

Las Vegas HOA takeover fraudster sentenced

This week a bunch of the 38 convicted criminals involved with the Las Vegas HOA takeover scheme are being sentenced.  This one escaped prison.  I'm going to do a summary of  all this soon.

The message of this is obvious--HOAs and condo associations are fragile institutions that are totally dependent  on the resources of their owners.  By resources I mean money, time,  loyalty, and expertise.  With virtually no governmental oversight and most residents not paying attention, it is  easy for associations  to be taken over by groups of people who don't have the  community's best interest in mind. Some are just petty neighborhood dictators, some are looking to engage in self-dealing to help  themselves and their friends, and some are fraudsters.

http://www.reviewjournal.com/news/las-vegas/bribe-figure-avoids-prison-hoa-takeover-scheme#st_refDomain=t.co&st_refQuery=/MUnfZTwjSV

HOA insurer not obligated to defend suit against HOA board absent underlying liabiltiy claim, court rules

In the past, insurers were readily inclined to defend most any legal action brought against an HOA board of directors even if there was no underlying claim of liability or damages such a lawsuit seeking equitable relief ordering the board to comply with the governing documents or state or federal law.

That may be changing if a recent Kentucky case is any indication. A Kentucky federal district court ruled an insurer had no duty to defend a claim under an HOA policy's directors and officers coverage, reasoning that D&O coverage is intended to shield corporate directors and officers for personal liability and not to protect the corporate entity itself.

Click here for a summary of the ruling in State Auto Prop. & Cas. Ins. Co. v. Highland Terrace Counsel of Co-Owners, Inc., 2015 U.S. Dist. LEXIS 59663 (W.D. Ky. May 7, 2015) by Traub Lieberman Straus & Shrewsberry LLP.

American condo buyer losing condo in Mexico due to liens

It appears that this unfortunate woman bought a Mexican condo as a retirement home, only to discover later that several Mexican workers had liens on the condo because of a pay dispute with the developer. A judge ruled in the workers' favor, and now they own what used to be her condo.


http://www.kpho.com/story/29096892/mexican-court-takes-away-arizona-womans-condo?autostart=false

Two conversations about constitutional rights

We have two different conversations about constitutional law. One is this hyper-technical purely legal analysis you see from lawyers and judges. The other is what really happens. So in this case, hooray, there are limits on the length of traffic stops, according to the USSC. But the other conversation says that if you get assertive about your constitutional rights in a real traffic stop, they won't let you go. Instead, you might get beaten, tazed, or shot.  The cop will likely face no consequences, just by claiming you resisted, or posed a "threat," or "he reached for his waistband." None of it needs to be true because a "reasonable mistake" is good enough. So, what good are rights if cops don't respect them and get away with violating them, day in and day out? The technological fix being proposed is video--dash cams and body cameras--and that may help, but the overriding problem is that police are drunk with power in this country. They can get away with almost anything and they know it. The can manipulate the on-the-scene situation, they investigate themselves, they have the union and prosecutors and most judges on  their side, and they are professional witnesses. Until that power situation changes, I think these USSC pronouncements are only meaningful in a small number of cases that get fully litigated. For thousands of day to day interactions between citizens and police, these "big decisions" are largely irrelevant.

http://www.scotusblog.com/2015/04/opinion-analysis-traffic-stops-cant-last-too-long-or-go-too-far-and-no-extra-dog-sniffs/

House Republicans want to do away with consumer protections for mobile home buyers

http://thinkprogress.org/economy/2015/04/14/3646494/manufactured-home-loans-shouldnt-be-predatory-but-they-are/

I just listened to (Vice) Presidential candidate Marco Rubio make the argument that Big Government regulation is the reason ordinary people are getting screwed by banks. If you can believe that, you can believe the Republicans have your best interests in mind, mobile home owners:

"The House will vote Tuesday to repeal consumer protections for low-income borrowers in rural America who have seen the promise of affordable housing turned into a financial sinkhole by a mobile home industry that makes pre-manufactured houses far more expensive to buy than they need to be.

The bill is part of the GOP majority’s campaign to chisel away at specific pieces of the Dodd-Frank financial regulatory overhaul that became law in 2010 but which left many details to be filled in later by regulators. In this case, it was the Consumer Financial Protection Bureau (CFPB) that did that filling. After long study of both publicly-available data and proprietary information from the industry itself, the CFPB began enforcing new consumer protections for people who borrow money for a manufactured home. When Rep. Stephen Fincher’s bill to roll back those regulations passes on Tuesday, the rules will have been in force for barely 15 months. The mobile home financing market is an esoteric landscape for a battle between consumer advocates, regulators, and politicians. Compared to the American Dream trappings that come with traditional homeownership, families in mobile homes don’t have much cultural cache."

HOA oversight bills die in Florida

http://www.palmbeachpost.com/news/business/hoa-oversight-bills-doa-in-tallhassee/nksWS/

"Homeowners hoping for more state oversight of the association boards that rule their communities are out of luck this year as legislation to increase scrutiny of HOAs died for lack of support in Tallahassee.  It’s the second year in a row that proposals to give the Department of Business and Professional Regulation power to investigate complaints against homeowners associations and create educational programs for HOA board members failed to even make it to a single committee hearing."

WTVC NewsChannel 9 :: News - Top Stories - Utah Homeowner Asked To Remove US Navy Flag From Home

WTVC NewsChannel 9 :: News - Top Stories - Utah Homeowner Asked To Remove US Navy Flag From Home: (KUTV) A homeowners' association in Lehi is facing backlash online after sending a letter to a resident and telling her to remove a U.S. Navy flag displayed in her front yard.

Lucia Sandoval says she put the flag up to remember her husband, who is currently deployed with the U.S Navy. But shortly after the flag went up, she received a notice stating it was out of conformity with neighborhood standards.

"In a recent review of the community, it was brought to our attention that you may not be aware of one or more of the rules for the community," the letter from the HOA reads. "Your front yard had a flag displayed not in accordance with the accepted standards. Please remove the flag ASAP."

In the letter, the HOA cites community guidelines, which read, "Flags and flagpoles shall be uniformly placed and consistent in size and shape and shall not interfere with on site utilities."

Sandoval says she didn't understand how her flag violated any of those policies and is refusing to take it down.

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Another flag flap, this one in the Utah sector of Privatopia. Film at 10 on WTVC Channel 9.

The town fascism built

"Nestled in eastern Long Island is a sleepy little town called Yaphank where the streets have cozy names like Oak and Park, names that hide a dark past: they once bore signs like Hitler and Goebbels Streets.Yaphank, in the 1930s, appeared as a haven for Americans--most of them of German heritage--who sympathized with the causes of the Third Reich.

In fact, it was largely founded as a Nazi camp, one of several scattered across the U.S., where the children in the German American Bund (AKA American Nazis) could fish, swim, hunt and learn about things like eugenics."

Read more: http://www.dailymail.co.uk/news/article-3033153/The-town-fascism-built-Inside-New-York-hamlet-home-pro-Nazi-camp-street-named-Hitler.html#ixzz3Wtt5bosL 
Follow us: @MailOnline on Twitter | DailyMail on Facebook

Robert Meisner Says Condo/Homeowners Associations Beware: The Michigan Legislature Has Dealt You a Severe Blow

I don't usually reproduce press releases, but I think in this case it bears repeating. I will be looking into the legislation in question, but for now, here is the word from attorney Robert Meisner:

-----------------------------------------

BINGHAM FARMS, Mich., March 25, 2015 /PRNewswire/ -- Robert Meisner, founder of The Meisner Law Group, PC, and nationally recognized as one of the premier community association lawyers in the country, is issuing an alert to anyone living in or thinking about buying a home in a condominium, homeowners association, or a cooperative. In a lame duck session this past December, the Michigan Legislature quietly made sweeping changes to the Michigan Nonprofit Act.

"Here's the hitch," says Meisner. "Every condo, homeowners/cooperative association is a nonprofit corporation, so the new laws apply to them. Among the things these homeowners need to know is that their boards of directors, officers, and others may already be virtually immune from liability and accountability to the association, even for gross negligence and certain intentional acts."

Meisner says that he is also concerned that the changes in the law take away much of the traditional democratic participation of the members of non-profits and make it easier for entrenched directors to remain in office. He says this allows directors to be elected without a meeting, eliminating open debate, passing matters at membership meetings without prior notice and even holding membership meetings without notice to the members. The law even allows the board to turn over complete control of the association to non-members who have no stake in the community.

"It is not just community associations that are affected," Meisner says. "The amendments have the potential to make non-profits of all kinds the tools of fraud and profit for the unscrupulous. I understand that the Michigan Legislature was trying to make the operations of non-profits more streamlined and efficient, but it seems that this legislation was rushed through without careful thought and analysis and without any input from those most affected."

Meisner is advocating that the legislature either modify or revoke the new legislation.

A nationally respected community association law specialist for over 40 years, and adjunct professor of community association law, Meisner has authored numerous legal articles, pamphlets and two books: Condo Living 1 and 2: Authoritative Guides to Buying, Selling, and Operating a Condominium.

For more information on the potential pitfalls of this new legislation, contact Robert Meisner at 248.644.4433 or atbmeisner@meisner-law.com.

http://www.prnewswire.com/news-releases/robert-meisner-says-condohomeowners-associations-beware-the-michigan-legislature-has-dealt-you-a-severe-blow-300056151.html

update:  and here is another attorney's summary of the changes.

HOA wins--developer has to pay the electric bill

"An East Naples homeowners association has won its legal battle after a judge agreed Glen Eagle Golf & Country Club didn’t pay their electric bills, leaving 105 homes without streetlights for five weeks after FPL flipped the switch.

Collier Circuit Judge Hugh Hayes ruled that Glen Eagle, the development’s master association, must pay Lago Villaggio Homeowners Association $18,000, with 4.75 percent interest from March 18, 2014, and reimburse the HOA for its lawyer’s fees."

https://docs.google.com/document/d/1vko6VujQRQcfuGgblKqKFGBPMye2e6uId_2gJpHKXq4/edit?usp=docslist_api

Man vows to take HOA to court over demolition demands | KOB.com

Man vows to take HOA to court over demolition demands | KOB.com

Judge rules owners can begin trying to take back property from receiver

http://www.wftv.com/news/news/local/judge-rules-troubled-condo-residents-can-take-back/nkZp9/

Thanks to Ward Lucas for this link.  Across the nation, failing condo projects have been placed in the hands of court appointed receivers who are supposed to make good decisions to get the projects back on their feet, if possible.  Here is one story of a situation where the receiver and  the owners are in major conflict, with allegations that the receiver isn't doing his job.

The Fossum Files--don't miss this!

Would  you like  to read  the most detailed and persuasive analysis of double taxation and differential political  participation of CID owners ever written?  Donna Fossum has just posted it, and it should be read by every policy maker involved in these issuess.  Donna Fossum, J.D., Ph.D., describes herself as follows:  "The author has lived in the West End of the City of Alexandria for over 30 years.  For 23 of these years, she was a member of Alexandria’s Planning Commission.  Professionally, she spent the better part of two decades as a Senior Policy Analyst at the RAND Corporation.  She also spent close to a decade as an attorney on what is now the Committee on Oversight and Government Reform in the U.S. House of Representatives and shorter stints as an attorney in the Office of Federal Procurement Policy in the Office of Management and Budget and a Senior Advisor in what is now the Science and Engineering Statistics Division of the National Science Foundation."

And here is a brief  summary of her detailed empirical analysis---

"This is an analysis of the unforeseen consequences of the City of Alexandria, Virginia privatizing many services that it has traditionally provided to its homeowners.  Alexandria was first settled in the mid-1700s and over the years has been home to the likes of George Washington, Robert E. Lee, Richard Nixon, Gerald Ford, and Jim Morrison, lead singer of The Doors.  Today, after three major annexations of land in 1915, 1930, and 1952, Alexandria now occupies 15.6 square miles directly across the Potomac River from the District of Columbia and is home to an estimated 142,000 people, making it one of the more densely populated cities in the United States.1  On a functional basis, however, Alexandria today is two separate “cities” of relatively equal physical size and population that differ markedly in community structure and political influence.  In one of these “cities,” the average homeowner pays their taxes and receives all their services from City Hall.  In the other “city,” the average homeowner pays their taxes, but receives only some of their services from City Hall."


Here are two links to the page, in case one doesn't work:
http://fossumfiles.org

http://fossumfiles.org.s122990.gridserver.com

"Condos on the road back"

Thanks to Fred Pilot for this story of one Florida condo development that went through the great recession and seems to be coming out of it, mainly because property values are rising again. The human misery that is referenced thoughout the story is something to consider, especially when you multiply it by tens of thousands of condo projects where many hard working people lost everything. The real estate industry is desperate to get us all buying again, so I think the pressure is on the real estate press to crank up the boosterism again.

http://www.heraldtribune.com/article/20150404/article/150409874?p=1&tc=pg

Nevada state legislator proposes to repeal all HOA and condo laws

Ira Hansen, a far-right Nevada state legislator, has introduced a bill through his control of the judiciary committee that would repeal all the Nevada statutes that regulate common interest housing. This article explains that the intent is to somehow magically have somebody else do this, because the state legislature can't be bothered.  This proposal is so dumb that only somebody of Hansen's caliber could have produced it.  Nevada has a fairly comprehensive set of laws on HOAs and condos, and all of it was put in place to deal with real problems.  Now Hansen wants to scrap the whole thing.

http://www.scrippsmedia.com/ktnv/news/Nevada-lawmakers-aim-to-delegate-HOA-disputes-to-lower-level-298479291.html

You can read up on Hansen at Wikipedia. He's a piece of work. Former right wing radio talk show host and columnist.  Here's a taste:
"In his columns, Hansen has written that the Oklahoma City bombing was a false flag operation orchestrated by the administration of President Clinton, that women do not belong in the United States Armed Forces, that President Obama is a "negro", that he owns and flies a Confederate battle flag, that gays are disproportionally prone to engaging in child abuse, that a "grossly disproportionate" number of crimes are committed by Latinos, and that the relationship between "Negroes and Democrats" is that of a "master-slave relationship with the benevolent master knowing what’s best for his simple minded darkies."

Mandatory water restrictions for California

HOA boards take heed. You will allow your inmates to let their lawns turn brown. You will allow lawns to be turned into drought resistant landscape and even hardscape. At least until California makes up its 11 trillion gallon water deficit. And yes, you read that right.

http://www.cnn.com/2015/04/01/us/california-water-restrictions-drought/

Drones present opportunity, challenge for community associations - Chicago Tribune

Drones present opportunity, challenge for community associations - Chicago Tribune



Drones in the hands of condo and HOA boards?  What could possibly go wrong?



"In the not-too-distant future, community associations could launch camera-equipped, unmanned aerial vehicles, also known as drones, for many routine tasks. They will be able to examine buildings for leaks and damage, check on the performances of contractors and find illegal barbecue grills on upper balconies."

TEPCO not paying for Fukushima cleanup

This is how capitalism works.  Corporations make profits and get to keep them.   Corporations generate huge "externalities," meaning massive costs that hurt others, but those costs get socialized.  In this case, the gigantic utility company that caused the Fukushima catastrophe--which is far from over--has fobbed off the cleanup cost onto  local governments.

"TOKYO (Kyodo) -- Tokyo Electric Power Co. has only shouldered 2 percent of the 76.1 billion yen ($638.8 million) spent on radiation decontamination operations conducted by municipality offices since the 2011 Fukushima nuclear crisis, Environment Ministry officials said Sunday. The operator of the crisis-hit Fukushima Daiichi nuclear power plant has effectively refused to cover the costs of removing radioactive soil and other waste incurred by local governments in areas affected by the disaster, saying it is confirming whether such payments are required by law."

http://mainichi.jp/english/english/newsselect/news/20150330p2g00m0dm031000c.html

Homeowners face HOA fines for children playing in driveway and on sidewalk

No, really.  It's true.  Having solved all other problems, this HOA has decided to prevent children from playing.  Why would anybody, with children or not, live in a place like this?


 "Some Chula Vista homeowners contacted Team 10, furious that their homeowners association is fining them if their children are caught playing outside on the driveway or sidewalk. Under the Agave and Saguaro HOA's rules, there are no wheeled toys -- including, but not limited to, bicycles, scooters, rollerblades, skateboards or roller skates -- allowed to be ridden in the HOA's common areas. Common areas include driveways, sidewalks and streets in the complex. According to the property manager, it's for safety reasons, but resident Karen Deviolini said, "You're fined because you live in a place where kids can't be kids."

http://www.10news.com/news/investigations/chula-vista-homeowners-face-hoa-fines-for-children-playing-on-driveway-sidewalk

Is suburban sprawl stifling the US economy?

This Vox article references a number of studies that suggest the answer may be "yes."


http://www.vox.com/2015/3/26/8291889/suburban-sprawl-economy

What is the most private city in the world?

London?  Dubai?  The new cities in the US that are comprised of private, gated communities?

"The word “private” is derived from the ancient Greek word idiotes, which means somebody who does not participate in public life. In ancient Greece, private life was confined to the home; the public, democratic life of citizens took place in the polis or city, and in the agora or assembly. The contemporary gated community, which focuses on privatising the experience of home as much as possible, fits well within this classical definition of private. There are literally millions of people living in gated communities: they have become the model of choice in the many societies around the world that are subject to extreme wealth inequalities."



http://www.theguardian.com/cities/2015/mar/26/what-most-private-city-world

How Wall Street used swaps to get rich at the expense of cities

Thanks to a helpful correspondent for flagging this.  Since the late 1970s cities have been trying to find ways to compensate for lost revenue sources.  The property tax revolt, suburbanization, loss of federal grants in aid, globalization of the economy, and other forces have left many cities in  precarious condition. CIDs are one of those compensation strategies.  And here is another one:  cities are getting hooked up with Wall Street investment banks that promise to create gains by engaging in interest rate swaps.  For example,  a city has outstanding fixed rate municipal bonds, and an investment bank--Goldman Sachs, J.P. Morgan Chase, or another one of these financial vampires--proposes to swap them for variable rate bonds that are linked to LIBOR or some other index, that pays the bond holders a lower interest rate.  Sounds good, right?  Except that local governments have been known to lose  a fortune doing it.  Chicago, led by former Wall Streeter and now Mayor Rahm Emanuel,  is in deep on these swaps.  Emanuel thinks he's smarter than everybody. But the swaps aren't turing out  to be such a good deal. Here's a detailed article taking the whole thing apart. 

http://www.nakedcapitalism.com/2015/03/getting-rich-expense-cities.html#comments

And for the worst case scenario, consider Jefferson County, Alabama.   After a series of swaps orchestrated by J. P. Morgan to pay for a new sewer system, they went bankrupt.   Until Detroit, it  was the largest local government bankruptcy in US history.

Condo requiring DNA samples of all pets so they can test their poop!

"The Rotunda, a condominium building in Tyson's Corner, Virginia has implemented a policy in which all new pet owners who are moving into the building will be required to have their animal's mouths swabbed in the presence of a building authority. If pet waste is discovered outside of the building, the waste will then be tested and matched up to the guilty animal's DNA."
------
Actually this nonsense has been going on for some time.  Obviously people should clean up after their dogs, but somehow in my HOA-free neighborhood everybody nearly always does.  Now there are companies peddling this silly service and of course all the costs end up falling on the owner of the miscreant dog.  Increasingly life for the American middle class is one boondoggle after another--red light cameras, usurious loans, grifting cable TV companies, fake calls threatening IRS suits, and of course chiseling condo associations and HOAs.

http://www.mrctv.org/blog/apartment-building-require-dna-samples-all-pets#tmhmdj:pDFL

Garden City movement aims at accreditation

The Garden City movement was the inspiration for common interest housing. Ebenezer Howard, a 19th century utopian thinker, wanted to build new, self-sufficient cities on undeveloped land that would allow people to have  the best of city and country living in one place under a benevolent managerial government.. Two of these cities, Letchworth and Welwyn, were built, and the idea came to the US, where real estate developers took it in a differert direction. I tell that story in my first book on HOAs.  But the Garden City Movement still exists, as evidenced by this artcle concerning an attempt to create accreditation for "real" Garden Cities.  They even have a Letchworth Declaration that lays out the governing principles.

http://sustainablecitiescollective.com/david-thorpe/1057256/new-alliance-aims-set-accreditation-standards-garden-cities?utm_source=hootsuite&utm_medium=twitter&utm_campaign=hootsuite_tweets

Colorado Lawmakers Debate Construction Defects Bill CBS Denver

Colorado Lawmakers Debate Construction Defects Bill  CBS Denver

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The quest for the waterproof condo continues. Hint: solutions aren't likely to be found in state legislatures.

4 found guilty in Las Vegas homeowner association fraud trial - www.ktnv.com

4 found guilty in Las Vegas homeowner association fraud trial - www.ktnv.com: LAS VEGAS (AP) -- A federal jury found a Las Vegas lawyer and three co-defendants guilty of conspiracy and wire fraud in a sweeping scheme to fraudulently control homeowners' associations and steer business to favored contractors and attorneys.
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Breaking news in Las Vegas HOA corruption scandal. Film and perp walk at 10. Cuff 'em, Danno.

HOA Rules - Why is it Necessary in Home Buying

HOA Rules - Why is it Necessary in Home Buying

A couple of people flagged this recently, from a 2010 on line article in the International Business Times that extols the virtues of HOAs:



"Each homeowners association has covenants, conditions and restrictions or also known as CCR. They are normally related to deed restrictions or restrictive covenants. All things pointed out in the agreement will firmly be imposed to homeowners in order to maintain the property as well as the value of the community. It restricts the building materials to be utilized in constructing homes and the kind of home upgrades allowed. Moreover, they set the allowable number of occupants per house, the kind of pets that are permitted and the race of persons who can stay in the community." [my emphasis]

--------------

In my first book on HOAs I devoted considerable effort to documenting the close connection between HOAs and enforcement of race restrictive covenants from about 1900 to 1950.  Whenever industry advocates recount the glorious history of HOAs they jump straight from Athenian Democracy, the "golden hills of Rome" and the New England town meeting to the present, and somehow manage to leave out the fact that for decades in the US, one of the main purposes of HOAs was to keep African-Americans from moving into white neighborhoods.

Welcome to 'Libertarian Island': Inside the Frightening Economic Dreams of Silicon Valley's Super Rich

http://www.alternet.org/news-amp-politics/welcome-libertarian-island-inside-frightening-economic-dreams-silicon-valleys

"...there is currently a similar movement happening in real life, and it is being funded by another rather eccentric businessman, the Paypal billionaire Peter Thiel. As some may already know, Thiel has teamed up with the grandson of libertarian icon Milton Friedman, Patri Friedman, to try and develop a “seastead,” or a permanent and autonomous dwelling at sea. Friedman formed the “Seasteading Institute” in 2008, and Thiel has donated more than a million dollars to fund its creation. It is all very utopian, to say the least. But on the website, they claim a floating city could be just years away. The real trick is finding a proper location to build this twenty-first century atlantis. Currently, they are attempting to find a host nation that will allow the floating city somewhat close to land, for the calm waters and ability to easily travel to and from the seastead."
-------------------------
These people are free to shower our elected officials with money in order to protect themselves against taxation and regulation.  This starves governments of the money they need to provide essential services and infrastructure. At the same time, these libertarian gazillionaires are planning on fleeing the society they are currently wrecking.

South Carolina grapples with HOA complaints

http://www.blufftontoday.com/bluffton-news/2015-03-15/sc-grapples-homeowner-association-complaints#.VQeEs2yCOrW

"COLUMBIA — Neighborhood Nazi. Condo Commando. Bullies. The dictatorship.

Those were some of the terms property owners and officials used to describe bad actors in South Carolina’s thousands of community associations on Thursday, as lawmakers debate how to regulate them.

“It has become my worst nightmare,” said Nadine Zacharie of Edgefield County’s Lake Trenton. She used to live in Augusta’s historic Hill section, but has spent the last 10 years in Lake Trenton, calling it “10 years of roughshod bullying.”

---------------

Yet another state moves toward increased regulation of CIDs. 

Police say naked man standing in doorway is not breaking law, ne - wistv.com - Columbia, South Carolina

Police say naked man standing in doorway is not breaking law, ne - wistv.com - Columbia, South Carolina: This week, neighbors were able to capture pictures and video of the man standing at his door. They are hoping with these images the Homeowners Association can file some type of nuisance complaint.
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Call the HOA!

Private police, coming to a subdivision near you

Since the early 1980s, this country has been in the grip of the ideology of privatism, which is the moral conviction that anything "private" is better than anything "public."  In practice, that usually means handing over government functions to private corporations, and we call that privatization.  But in other cases, it means that government just abdicates its responsibilities on the assumption that somehow non-governmental actors will take over the function that government is no longer performing.  That's what has been going on with the HOA/condo revolution--local governments and developers set up private associations that everybody assumes will just happily carry out all sorts of government functions, with little or no oversight, training, or other institutional support.  However, in reality there are a lot of problems with that assumption, and the hands-off, out of sight, out of mind attitude toward HOAs and condo associations is being questioned because many associations are disorganized, out of control, underfunded, understaffed, and subject to takeover and manipulation (take a look at all my previous posts on the huge HOA takeover/fraud ring in Las Vegas for only one example). That's why so many state legislatures have been creating oversight frameworks for private governments, including regulation of associations' internal processes, ombudsman offices, and public education.  It's not much, but it does amount to a recognition that a lot of associations are struggling and even failing.

Probably the most dangerous aspect of this HOA takeover of government functions is the rise of private policing in these associations.  Ward Lucas has a post on this referencing this article from  he Washington Post:

http://www.washingtonpost.com/local/crime/private-police-carry-guns-and-make-arrests-and-their-ranks-are-swelling/2015/02/28/29f6e02e-8f79-11e4-a900-9960214d4cd7_story.html

Here in Illinois, in 2013 the state Supreme Court made a truly bizarre decision (Poris v. Lake Holiday POA) that allows HOA private police to make traffic stops and issue citations.  The decision is remarkable for its ignorance.  I wrote a post on it at the time.  The court never  even mentioned the Illinois statutes that govern HOAs, never referenced any of the major cases from all across the nation on the limits of CID private government, and refused even to consider what the limits are of this power. For example, what are the rights of citizens to resist these private security guards?  What force can the citizen and the pseudo-cop  use against each other?

I think nobody learned much from George Zimmerman killing  Trayvon Martin.  Zimmerman was a "neighborhood watch" volunteer that the HOA told people to call.  He was also armed and, we now know, prone to nasty encounters with other people, especially his significant others.  What better example can there be of the risks involved  in these encounters?  Self-appointed vigilantes and untrained security guards--the bottom of the law enforcement food chain--are running around stopping people.  Couple that with the fact that many civilians are carrying concealed weapons. This is a bad mix.

The problem would be solved if  local governments would reclaim their basic responsibility to enforce the law in their jurisdictions.  But law enforcement costs money, and if people don't want to pay taxes to  support public local government, they will get what they are paying for: the George Zimmermans of the world, coming to a subdivision near you.

Nevada Supreme Court justices deny tipping HOA conspirator to FBI raid

The trial judge prevented a Las Vegas Review-Journal reporter from asking a defense attorney who the justice was...but six of the seven have said it wasn't them. 

http://www.reviewjournal.com/news/las-vegas/state-supreme-court-justices-deny-tipping-hoa-conspirator-fbi-raids

"The identity of the Nevada Supreme Court justice alleged to have tipped off a construction defect lawyer to the federal homeowners association investigation in 2008 remained a secret Tuesday. This came as six of the seven justices on the high court when the late Nancy Quon was thought to have received the tip denied speaking to Quon about the high-profile investigation.

Witness: Nevada Supreme Court justice warned HOA conspirators of raid

http://www.reviewjournal.com/news/las-vegas/nevada-justice-warned-hoa-conspirators-police-raids-witness-says

I've been wondering why this entire case has stayed out of the national news media.  How about this, journalists?  Is this enough to get your attention?  A witness testified that a justice of the Nevada Supreme Court tipped off attorney Nancy Quon (who later committed suicide) of the pending FBI raid aimed at the Las Vegas HOA fraud ring.

Nevada justice warned HOA conspirators of police raids, witness says | Las Vegas Review-Journal

Nevada justice warned HOA conspirators of police raids, witness says | Las Vegas Review-Journal: A witness in the trial of four defendants charged in the massive scheme to take over and defraud homeowners associations testified Monday that she was told a Nevada Supreme Court justice tipped off the late attorney Nancy Quon to the FBI investigation.

Deborah Genato, who pleaded guilty in the scheme, testified she learned that Quon was alerted beforehand to FBI-led raids across the valley in September 2008. Quon’s law office was among the many sites agents searched.

Genato said her boss, Lisa Kim, who ran a company that managed several HOAs linked to the multimillion-dollar scheme, told her about the tip. Kim, who also pleaded guilty, is on the government’s witness list, but has not been called to testify for prosecutors, who plan to wrap up their case as early as Tuesday.

Four remaining defendants, including longtime attorney Keith Gregory, are standing trial on conspiracy and fraud charges in the courtroom of U.S. District Judge James Mahan.

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This years-long tawdry tale of corruption in Privatopia, Nevada sector, is worthy of a House of Cards-like series.

Colorado moving closer to licensing property managers

http://www.denverpost.com/business/ci_27663749/colorado-moving-closer-licensing-hoa-managers

On July 1, Colorado will become the tenth state to require HOA and condo association managers to be licensed. It is incredible that in 40 states anybody can get some business cards printed and become a community association manager.  Colorado's legislature was persuaded by "horror stories," as the linked article explains.  The basic model of CID regulation that has emerged in a few states since the mid 1990s has three components:  (1) manager licensing; (2) more detailed state regulation of associations' internal processes, such as elections, document amendments, access to records, meetings, and assessment collection; and (3) a condo/HOA ombudsman who keeps basic records on associations in the state, provides education, and records and/or helps to resolve disputes.  It is a minimalist model that fails to address some major risk factors--the biggest one being association finances--but it is better than the nothing that we had previously. Owners need some basic protections, and caveat emptor doesn't cut it.