Monday, April 18, 2005

CAI Fast Tracks - 04/18/2005--Bankruptcy Legislation Will Help Associations Collect Assessments

Here's an announcement from the Community Associations Institute. If you scroll down you get to this:

Legislation Will Help Associations Collect Assessments

After eight years of battles on Capitol Hill, the U.S. Senate and House of Representatives have passed bankruptcy reform legislation. The new law will go into effect 180 days after President Bush signs the bill into law—which is expected to happen in the next couple of weeks. The legislation contains CAI language permitting community associations to collect post-petition assessments, meaning associations will be able to collect assessments after a homeowner files for bankruptcy. We will provide members with the effective date of the new law and comprehensive information in the near future.

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I confess that I did not know this was in the bankruptcy bill. It seems to be a significant change and one that the activists might find distressing.
'Mad Max' Fan Convoy Ends in Arrests

SAN ANTONIO - Eleven "Mad Max" fans of were arrested after alarming motorists as they made their way to a movie marathon in a theatrical convoy in which they surrounded a tanker truck armed with fake machine guns...One of the organizers of the convoy, Chris Fenner, said the arrests were unfair. He said he didn't know why anyone would have confused the costumed crew recreating a scene from "Mad Max 2: The Road Warrior" - set in a post-apocalyptic wasteland - with a real threat. "I honestly don't know how that could be, because 'Road Warrior' was so over the top," he said.

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You have to hand it to Chris Fenner and friends. They know how to have a good time. But I think even in Texas this is probably illegal.

Capital Improvements
Associations seek taxing authority for new buyers

Local community associations are asking members to modif their covenants so they can tax new homeowners for capital improvements. Both Brandermill and Woodlake have those questions on their ballots to be decided by members later this month. Hampton Park already allows it. As planned communities age, community boards are finding an ever increasing cost to repair and replace playgrounds, athletic fields, community signs, bike paths and other amenities. “It allows new residents to contribute to the existing amenities,” said Gene Grecheck, Woodlake’s VP. “At 20 years old, Woodlake needs more capital improvements. Increasing our assessments would be too much of a burden on the residents.” Woodlake residents now pay $360 annually in assessments. This year new homebuyers would pay that amount at closing for the capitalization fee.
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As Fred Pilot points out, here we have HOAs acting like cities. Cities pass along costs to new homeowners by imposing fees on developers. HOAs are now getting into the act...
Virginia: Property taxes spur state constitutional debate
USNews.com: Condo prices are soaring quickly and construction is frenzied. But is it too much, too fast? (4/25/05)
If you saw CNN's Open House on Saturday, you heard the segment on the real estate bubble issue. Here's an article Fred Pilot forwarded that takes it up specifically regarding condos, which are the first to get hit when there is a real estate downturn:

Condomania is back.While the nation has been focusing on the white-hot single-family-home market, condos have been staging a pretty impressive run-up of their own. The median price of an existing condo in the United States jumped 17 percent in 2004 to $193,600, compared with a gain of 8.3 percent to $184,100 for a single-family dwelling. And that was the fourth year in a row that condos, co-ops, and townhouses have increased in value faster than their single-family counterparts. Some 15 years ago, homeowners feared that condo values wouldn't hold, but today, says Bruce Karatz, CEO of Los Angeles-based KB Home, "People are a lot more confident these days that the value of a condo is solid." Maybe too confident. With prices climbing so high, so fast, and with new construction moving at such a frenzied pace, some experts warn that the sizzling condo market--indeed, the entire real-estate market--could start to fizzle.
Earth?s gravity may lure deadly asteroid - Britain - Times Online
All this HOA stuff may not matter so much after all...

Sunday, April 17, 2005

TheIowaChannel.com - News - Iowa Community Goes All-Organic
DES MOINES, Iowa -- It's official: Maharishi Vedic City has gone all natural. The town of about 200 in southeast Iowa has become what some experts believe is the first all-organic city in the country. The city council has voted to ban the use of synthetic pesticides and fertilizers within the city limits. City Attorney Maureen Wynne said residents in the city already use all-organic methods so the council's vote only formalized a practice that was already in place. Wynne said the ban covers everything from lawns and shrubs on both residential and commercial properties. The ban follows earlier action to grow and sell only organic foods within the city limits.
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Maharishi Vedic City...just your typical Iowa small town. Nothing strange going on here. The city has its own web page at http://maharishivediccity.net/, where it lists all the Vedic functions of the city, including Vedic architecture, agriculture, economy, and "Vedic Defense: Founded to become a “lighthouse of peace” for America and the world. The City is working to establish a permanent group of peace-creating experts whose daily practice of Maharishi’s Transcendental Meditation™ and Yogic Flying techniques will promote coherent national and world consciousness and thereby prevent any negativity from arising in America or in the family of nations."

I bet the Pentagon wishes they had some of those Yogic Flying Techniques.
Yahoo! News - County Tells Condo Residents To Get Out
Subtle headline, don't you think?

Residents of a 543-unit Miami Beach condominium are being kicked out of their homes today. At 10 a.m. the city is cutting off power to the Castle Beach Club. Some residents didn't receive notification that they would have to leave until Thursday afternoon, when they saw bright orange stickers posted on the building, informing them that the structure was unsafe. Other residents got the word Thursday when Miami Beach police knocked on their doors, telling them the county's building department had condemned the Castle Beach Club due to an electrical problem, which created a problem for all units. Some residents are upset with the board of directors, claiming it has been using monthly association fees to renovate a portion of the building that is a hotel.



Downstate neighborhoods: Built by association; Groups unite residents, concerns

Thanks to Fred Pilot for this. I keep pointing out that municipalities are a major force behind the spread of HOAs, and not just in the Sunbelt. Here's another example, this one from Delaware:

Kent County Planning Director Michael J. Petit de Mange said the county's interest in homeowner associations is to have a legal entity maintaining common property, such as open space, playgrounds, stormwater ponds, clubhouses or other items a developer provides. In June 2003, Kent County changed its subdivision code to make sure developers provide for perpetual ownership and maintenance of common space or stormwater ponds. The developer can either maintain ownership or provide for the establishment of a legal entity such as a homeowners association, a community open space trust or a maintenance corporation. Mr. Petit de Mange said development projects through the '90s proposed homeowners associations, but many never formed or possibly failed. "Trying to form one after the fact is extremely difficult," he said.

Friday, April 15, 2005

BATTLING gran Jean Collop nabbed a burglar — by laying him out with a garden gnome.

And that's why HOAs should never, ever, ban garden gnomes. Got it?
CNN, "Open House," Saturday April 16, 9:30 eastern time...
...is the time and place for the pre-empted episode on HOAs, featuring yours truly, that was put off due to the death of the Pope and the marriage of some royal folks.
http://money.cnn.com/ontv/openhouse/
Burden of debt | The San Diego Union-Tribune
Here's the first of two stories that quote me at some length, just in case anybody's interested.
Associations are too quick on the trigger, critics claim | The San Diego Union-Tribune
Housing market may be cooling | The San Diego Union-Tribune
The median price for resale homes in San Diego County hit a record last month at $535,000, but there were hints of a softening in the market as overall appreciation in pricing slowed and sales declined, DataQuick Information Systems reported yesterday. Driven by the continued popularity of lower-priced condominiums, particularly those that have been converted from apartments, the year-over-year rate of appreciation last month slowed to 12.5 percent, the lowest of the six Southern California counties tracked by DataQuick. The last time appreciation was in the range of 12 percent was November 2003.
[more]

People leaving Los Angeles county in droves

The exodus of Los Angeles County residents to surrounding counties and nearby states accelerated significantly during the past year, driving the largest population shift in the nation, according to new U.S. Census Bureau figures released Thursday.


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Strange. I mean, you can have horrible schools, horrendous crime, bad air, high taxes, and meddlesome government, and all for only about $600,000 for a three-bedroom house that is a mere 75 miles from your job. What's not to like?
Potomac News Online | County program seeks neighborhood support for clean-up efforts

Casciato stressed that the county doesn't want to interfere with healthy communities or get in the middle of neighborhood disputes that do not involve code violations and don't occur in problem areas. "We're not going to step in in the place of existing, functional neighborhood associations," Casciato said. "We can do a little education, but we're not going to step in and substitute our judgment for theirs unless there is some clear violation of the county code going on."


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Nice of the public officials not to interfere with the responsibilities they have delegated for free to HOAs, isn't it?
East Valley Tribune editorial: Legislature should rein in HOA abuses, but not rewrite contracts
House bill aims at condo boards:Hesitant to go after homeowners associations, a committee passes more rules for condominiums.

Sunday, April 10, 2005

Clayton Cramer's BLOG says...it's "Crack in the World"!!!
Below I linked to a story about some scientists who are drilling a hole through the mantle of the earth's core. I said these folks should check out science fiction because this has been tried (on screen) and it is a bad idea. At least, on film. Clayton Cramer went a step further and came up with the name of the movie (which I thought was quite good).

It Sounds Like The Start of a Bad 1960s Sci-Fi Movie

Crack in the World (1965), as I recall. It was truly awful, even by the standards of the time, so this news story caught my attention:
"Scientists said this week they had drilled into the lower section of Earth's crust for the first time and were poised to break through to the mantle in coming years. The Integrated Ocean Drilling Program (IODP) seeks the elusive "Moho," a boundary formally known as the Mohorovicic discontinuity. It marks the division between Earth's brittle outer crust and the hotter, softer mantle."

I do hope the environmentalists don't hear about this. Since most of them seem to have a Crack in the World level of science training, I expect them to get in a rather serious tizzy in no time at all.