On July 1 I will be leaving on vacation with my three children and we will not be back until around July 21. We will be camping in Bryce Canyon National Park in Utah, visiting San Francisco, and doing other fun things. It will be hard for me to stay current on this weblog, so Shu Bartholomew has graciously agreed to serve as a guest blogger while I am away. I will contribute whenever I have the time and an internet connection, but it is hard to say how often that will be.
Shu, as most of you know, is the creator and grand empresario of On the Commons, the weekly radio show that has featured just about everybody who knows anything about common interest housing. Thanks, Shu!
Monday, June 28, 2010
Gated communities have ways of getting their fees | PoconoRecord.com
Gated communities have ways of getting their fees | PoconoRecord.com
A Pocono Country Place considered the Sterlins delinquent on all properties and deactivated gate passes held by all of their renters.
It meant that tenants had to go into the community office and register every time they wanted to get through the gate. As a result, many tenants moved out. In Monroe County Court, the Sterlins claimed a loss of $60,000 in rental income and complained that the community wrongfully interfered with their contractual relations with tenants.
Private communities can exert invasive pressure unmatched by municipal tax collectors.
Associations without gates often deny delinquent owners access to amenities such as a pool or other recreation services. Some communities change the key to an owner's mailbox.
At least 56,422 homes are within the borders of private community associations in Monroe and Pike counties. Homes in private associations, some gated, many ungated, account for 38 percent of all housing units in Monroe County and 64 percent in Pike County, according to county and U.S. Census data.
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Thanks to Cynthia Stephens for this link.
Bill gives more rights to Illinois common interest communities - chicagotribune.com
Bill gives more rights to Illinois common interest communities - chicagotribune.com
Common interest communities, which usually are town house or single-family home associations, have been governed primarily by their declarations and Sections 18.5, 18.6 and 18.7 of the Condo Act. Some declarations are more comprehensive and owner-friendly than others.
The new legislation, also known as SB-3180, outlines procedures and requirements for association governance and operations. It passed both chambers of the General Assembly last month and awaits the signature of Gov. Pat Quinn. It becomes effective upon signing.
"The bill is condo-like," said association attorney Michael C. Kim of Chicago. "It's a slimmed-down version of the Condo Act, but it's not the same."
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The idea is to give more protection to owners in HOAs. Section 18.5 of the condo act covers non-condo associations, but it is a bare-bones section. This is more specific and has more protection for unit owners in certain areas, such as access to records, meetings, and assessment increases.
With the clock ticking, Sacramento set to blow another budget deadline - ContraCostaTimes.com
With the clock ticking, Sacramento set to blow another budget deadline - ContraCostaTimes.com
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This is happening all over the nation now. State and local governments just ignore the laws that limit their power. Does that mean they are becoming more like HOAs and condo associations, or is it the other way around?
SACRAMENTO — Most of us get in trouble when we're late. If you don't bring back a library book on time, they fine you. Miss a court date, and count on a warrant with your name on it.
But not California's political leaders — at least not when it comes to passing a budget. Wednesday marks the last day of the fiscal year — the day the state constitution says a budget must be in place. Yet, for the 17th time in the past 20 years, lawmakers and the governor will find themselves bickering well into the summer — and busting their deadline.--------------------
This is happening all over the nation now. State and local governments just ignore the laws that limit their power. Does that mean they are becoming more like HOAs and condo associations, or is it the other way around?
Liveblogging the final four USSC decisions now on SCOTUSBLOG
Here is the link to SCOTUSBLOG, where an able team of USSC litigators will be live blogging the announcement of the last four USSC decisions of the term in 15 minutes or so--including McDonald v. City of Chicago, that will determine whether the Second Amendment right to keep and bear arms applies to the states.
Sunday, June 27, 2010
Public finances: Can pay, won't pay | The Economist
Public finances: Can pay, won't pay | The EconomistThis article from The Economist compares and contrasts deadbeat American states, such as Illinois, with deadbeat nations like Greece. Thanks to Doug Selby for the link (and for the picture of the rattlsnake he dispatched today on his ranch).
FT.com / US / Economy & Fed - US state budget crises threaten social fabric
FT.com / US / Economy & Fed - US state budget crises threaten social fabric
This is from the Financial Times, a publication not given to panic or exaggeration.
This is from the Financial Times, a publication not given to panic or exaggeration.
RealClearMarkets - Is Illinois the New California?
RealClearMarkets - Is Illinois the New California?
As of Monday, the credit default swap spread for Illinois general obligation bonds climbed to 313 basis points for a five-year contract -- meaning a bondholder must pay over 3% of the bond's face value per year to be insured against default.
That's a higher price than for all but seven sovereign entities tracked by CMA, and slightly higher than California, whose five-year CDS spread sits at 293. Investors rate Illinois's debt as slightly riskier than Iceland's or Latvia's, but not quite as big a gamble as Iraq's.
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This is an essay by Josh Barrow that was cited in a Chicago Tribune editorial (one of many) pointing out that the State of Illinois is in a terrifying downward financial spiral that places it, in terms of the risk of defaulting on its public debt, worse than Portugal and California, and just below Dubai and Iraq. The data on government probability of default can be found here. What I find disturbing--above and beyond the desperate situation this state is in--is the la-de-da attitude that prevails everywhere in elite circles except the editorial board of the Trib. The public can't be bothered, of course. When I bring this up in conversation with anybody I feel like one of those scientists in the movies who keep ranting about how Planet X is going to crash into the earth, and people just say, "Yeah, sure, but how about the Cubs?"
And of course, California is on it's own path to perdition, but as the Barrow article notes, California's public pension plans are not as badly underfunded as those in Illinois. Here's a taste from the Barrow article about how bad this is: Illinois's pension funding irresponsibility may come home to roost soon. Joshua Rauh, a professor at Northwestern University, estimates that the state's pension funds will run out of money in 2018 at the current funding pace. "He estimates the plans' total funding gap at $219 billion -- a liability that dwarfs the $117 billion in bonds outstanding from the state and localities within it."
That's $219 BILLION DOLLARS.
As of Monday, the credit default swap spread for Illinois general obligation bonds climbed to 313 basis points for a five-year contract -- meaning a bondholder must pay over 3% of the bond's face value per year to be insured against default.
That's a higher price than for all but seven sovereign entities tracked by CMA, and slightly higher than California, whose five-year CDS spread sits at 293. Investors rate Illinois's debt as slightly riskier than Iceland's or Latvia's, but not quite as big a gamble as Iraq's.
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This is an essay by Josh Barrow that was cited in a Chicago Tribune editorial (one of many) pointing out that the State of Illinois is in a terrifying downward financial spiral that places it, in terms of the risk of defaulting on its public debt, worse than Portugal and California, and just below Dubai and Iraq. The data on government probability of default can be found here. What I find disturbing--above and beyond the desperate situation this state is in--is the la-de-da attitude that prevails everywhere in elite circles except the editorial board of the Trib. The public can't be bothered, of course. When I bring this up in conversation with anybody I feel like one of those scientists in the movies who keep ranting about how Planet X is going to crash into the earth, and people just say, "Yeah, sure, but how about the Cubs?"
And of course, California is on it's own path to perdition, but as the Barrow article notes, California's public pension plans are not as badly underfunded as those in Illinois. Here's a taste from the Barrow article about how bad this is: Illinois's pension funding irresponsibility may come home to roost soon. Joshua Rauh, a professor at Northwestern University, estimates that the state's pension funds will run out of money in 2018 at the current funding pace. "He estimates the plans' total funding gap at $219 billion -- a liability that dwarfs the $117 billion in bonds outstanding from the state and localities within it."
That's $219 BILLION DOLLARS.
Tiny prefab units promote eco-friendly building
Tiny prefab units promote eco-friendly buildingZeta Communities will construct the housing for the 22-unit developments, planned for parking lots in Berkeley and San Francisco. The projects will feature tiny living spaces - 310- to 340 square-foot studios - and no parking. Instead, they will include a car-sharing space.
The proposed four-story projects are the first foray into prefabricated housing for East Bay developer Patrick Kennedy of Panoramic Interests.
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/05/18/BUCG1DEGD3.DTL&type=realestate#ixzz0s4KnkW7R
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How lovely. A 310 square foot condo with no parking. And all for only $200-$275K.
The proposed four-story projects are the first foray into prefabricated housing for East Bay developer Patrick Kennedy of Panoramic Interests.
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/05/18/BUCG1DEGD3.DTL&type=realestate#ixzz0s4KnkW7R
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How lovely. A 310 square foot condo with no parking. And all for only $200-$275K.
On The Commons
On The CommonsOn The Commons turns 10 years old this month. Our special guest is Evan McKenzie as we celebrate 10 years and kick off a brand new season of On The Commons.
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Give it a listen and post a comment telling us all what you think...
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Give it a listen and post a comment telling us all what you think...
Breezy summer reading about associations just a click away - chicagotribune.com
Breezy summer reading about associations just a click away - chicagotribune.com
privatopia.blogspot.com: The Privatopia Papers runs headlines and links to news stories about dreary financial reports, dubious legislation and homeowner associations behaving badly. Attorney Evan McKenzie, a political science professor at the University of Illinois at Chicago, offers snarky commentary along with explanations of the finer points of law and governance.
Get the Chicago Tribune delivered to your home for only $1 a week >>
In one post, a Baltimore association proposed DNA-testing of its resident dogs to determine which owners aren't cleaning up after their pooches. McKenzie assured his readers the story was not something invented by The Onion, a satirical news source.
"It is no longer possible to parody the antics of homeowner association boards because no matter how absurd the concept you come up with, they have all ready exceeded it," he wrote.
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Thanks to Pam McKuen for including this blog among the cool summer readings on HOAs. She gets my vote for most knowledgeable journalist on this subject (and not because of this article!) Hey--am I snarky? I thought I was just realistic...
privatopia.blogspot.com: The Privatopia Papers runs headlines and links to news stories about dreary financial reports, dubious legislation and homeowner associations behaving badly. Attorney Evan McKenzie, a political science professor at the University of Illinois at Chicago, offers snarky commentary along with explanations of the finer points of law and governance.
Get the Chicago Tribune delivered to your home for only $1 a week >>
In one post, a Baltimore association proposed DNA-testing of its resident dogs to determine which owners aren't cleaning up after their pooches. McKenzie assured his readers the story was not something invented by The Onion, a satirical news source.
"It is no longer possible to parody the antics of homeowner association boards because no matter how absurd the concept you come up with, they have all ready exceeded it," he wrote.
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Thanks to Pam McKuen for including this blog among the cool summer readings on HOAs. She gets my vote for most knowledgeable journalist on this subject (and not because of this article!) Hey--am I snarky? I thought I was just realistic...
Saturday, June 26, 2010
Lawmakers to talk about severing Lake Michigan from Mississippi River to halt carp - chicagotribune.com
Lawmakers to talk about severing Lake Michigan from Mississippi River to halt carp - chicagotribune.comA century ago, reversing the Chicago River and building a complex system of channels to steer sewage away from Lake Michigan was considered one of the great engineering feats in world history.
As concerns mount about Asian carp, momentum is building to re-engineer Chicago's waterways to allow for the passage of boats and ships, but not harmful invasive species.
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Reversing the direction of the Chicago River was one of the greatest engineering feats in American history, considering it was done between 1889 and 1900. Now, with every Illinois government insolvent, from the state down to the local mosquito abatement district, the plans are being proposed to do something equally grandiose. And all because of a fish. Last time at least it was because of...well, never mind.
Some California fire departments billing after accidents - Sacramento Living - Sacramento Food and Wine, Home, Health | Sacramento Bee
Some California fire departments billing after accidents - Sacramento Living - Sacramento Food and Wine, Home, Health | Sacramento Bee
More than two dozen fire agencies, struggling for ways to boost sagging budgets, have begun tallying service charges at crash sites and sending bills to drivers or their insurance companies.
Is a pumper truck called to the scene? That'll be $400. Traffic cones and flares needed? Another $20. An incident commander to oversee? That's $75 an hour.
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As I was saying on "On the Commons" today, local governments are clever about finding ways to make up for lost revenues. Whenever state legislatures and voters try to make them cut back, they find new way to raise money. CIDs, which are now the lowest level of local government, are one of those fiscal tools used by cities and counties. People who think that CIDs will replace local governments are missing the big picture--CIDs are the lowest and most vulnerable level of local government. Their supposedly "private" nature is just a legal fiction that allows them to get away with things public governments can't do.
More than two dozen fire agencies, struggling for ways to boost sagging budgets, have begun tallying service charges at crash sites and sending bills to drivers or their insurance companies.
Is a pumper truck called to the scene? That'll be $400. Traffic cones and flares needed? Another $20. An incident commander to oversee? That's $75 an hour.
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As I was saying on "On the Commons" today, local governments are clever about finding ways to make up for lost revenues. Whenever state legislatures and voters try to make them cut back, they find new way to raise money. CIDs, which are now the lowest level of local government, are one of those fiscal tools used by cities and counties. People who think that CIDs will replace local governments are missing the big picture--CIDs are the lowest and most vulnerable level of local government. Their supposedly "private" nature is just a legal fiction that allows them to get away with things public governments can't do.
Durbin asks Obama to appoint carp czar - Chicago Breaking News
Durbin asks Obama to appoint carp czar - Chicago Breaking News As concerns mount about the presence of Asian carp near Lake Michigan, U.S. Sen. Dick Durbin today urged President Obama to appoint a carp czar to oversee efforts to keep the invasive species out of the Great Lakes.
"We need to have one person who coordinates the efforts of the federal, state and local agencies that are doing everything they can to keep the Asian carp out of Lake Michigan," Durbin said during a news conference at the Shedd Aquarium. "We believe it's absolutely essential."
Durbin was responding to the discovery of a bighead carp, a variety of Asian carp, during routine sampling this week in Lake Calumet, just six miles from Lake Michigan. Standing beside environmental advocates who have championed closing Chicago-area locks as a way to prevent carp from entering Lake Michigan, Durbin called the finding a possible "game changer" and said "we have to take it very seriously."
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Durbin wants a czar so the President will have ultimate control over what happens to Illinois shipping in the Chicago River. He has been trying to prevent anybody from interfering with the status quo--an obviously ineffective system that is allowing the carp to move up the river toward Lake Michigan. Durbin thinks Obama will look out for the local economic interests, which are substantial. Durbin is afraid the Supreme Court or even Congress (imagine them actually solving a problem!) will effectively close the canal and river system down to prevent these nasty carp from wrecking Lake Michigan and then the rest of the Great Lakes.
The Supreme Court refused to rule on this twice in the last term. Big mistake, in my opinion. These Asian carp are a destructive invasive species. We were looking at them yesterday in the Shedd Aquarium in Chicago. Weird things, with eyes below the midline of their bodies--constantly sucking in water and eating the plankton. They grow at an incredible rate and if they kill the bottom of the food chain, the Great Lakes will never be the same.
Court Upholds St. Louis’s Attempt to Suppress Eminent Domain Protest Mural | Institute for Justice: Litigating for Liberty
Court Upholds St. Louis’s Attempt to Suppress Eminent Domain Protest Mural | Institute for Justice: Litigating for LibertyArlington, Va.—The right of free speech suffered a blow today when a federal court upheld St. Louis’s attempt to suppress activist Jim Roos’s mural protesting the city’s abuse of its eminent domain power.
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Thanks to Mystery Reader for this link to the Institute for Justice website (the property rights law firm), where you can read about the battle over Jim Roos's "End Eminent Domain Abuse" mural. The struggle over municipal use of the eminent domain power looks like a lasting issue. There are several areas where property rights activists, and many citizens, want reform.
First, there is the issue of what constitutes a taking. There are what we call "regulatory takings," where the city doesn't actually condemn the land and pay you for it, and instead they just pass regulations that restrict your use of the land so heavily that it loses much of its value, and for all practical purposes the city might just as well have taken it from you--without paying for it.
Second, there is the the Kelo v. City of New London issue: what are the limits of the "public use" condition in the due process clause? The Kelo decision upheld the right to take property from one private party and practically give it to another private party (in that case, Pfizer Corporation) in order to enhance tax revenues and stimulate economic development, even though there was no public use. Most states passed reform legislation to limit that sort of taking, but UIC Political Science graduate student Tom Kelly wrote a dynamite dissertation showing that this legislation has been ineffective (I was on his committee).
Third, what kinds of property interests can be taken? Does it have to be physical property, or can intangible property interests be "taken" and thus require compensation?
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Thanks to Mystery Reader for this link to the Institute for Justice website (the property rights law firm), where you can read about the battle over Jim Roos's "End Eminent Domain Abuse" mural. The struggle over municipal use of the eminent domain power looks like a lasting issue. There are several areas where property rights activists, and many citizens, want reform.
First, there is the issue of what constitutes a taking. There are what we call "regulatory takings," where the city doesn't actually condemn the land and pay you for it, and instead they just pass regulations that restrict your use of the land so heavily that it loses much of its value, and for all practical purposes the city might just as well have taken it from you--without paying for it.
Second, there is the the Kelo v. City of New London issue: what are the limits of the "public use" condition in the due process clause? The Kelo decision upheld the right to take property from one private party and practically give it to another private party (in that case, Pfizer Corporation) in order to enhance tax revenues and stimulate economic development, even though there was no public use. Most states passed reform legislation to limit that sort of taking, but UIC Political Science graduate student Tom Kelly wrote a dynamite dissertation showing that this legislation has been ineffective (I was on his committee).
Third, what kinds of property interests can be taken? Does it have to be physical property, or can intangible property interests be "taken" and thus require compensation?
Stone Oak resident claims HOA harassment over porch gate to protect autistic son | kens5.com | San Antonio News, Weather, Sports, Traffic, Entertainment, Video and Photos
Stone Oak resident claims HOA harassment over porch gate to protect autistic son Christa says Luke would run out of the house and into the street just about every day. He came close to being run over by a car on a few occasions.
So Christa says she decided to do something about it. The Colquhouns filed an application with the Panther Creek at Stone Oak Homeowners Association asking to build the gate.
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And, she says, the HOA let 60 days go by without responding, so they built the gate. And then somebody complained to the HOA, who demanded that she remove it, complete with the usual threats of litigation.
Thanks to Fred Pilot for another example of the kind of thing that, according to the industry, hardly ever happens.
So Christa says she decided to do something about it. The Colquhouns filed an application with the Panther Creek at Stone Oak Homeowners Association asking to build the gate.
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And, she says, the HOA let 60 days go by without responding, so they built the gate. And then somebody complained to the HOA, who demanded that she remove it, complete with the usual threats of litigation.
Thanks to Fred Pilot for another example of the kind of thing that, according to the industry, hardly ever happens.
China's Desert Ghost City Shows Property `Madness' Persists - Bloomberg
China's Desert Ghost City Shows Property `Madness' Persists - BloombergInvestors are stockpiling empty apartments because there are few alternative investments, undermining government efforts to deflate a property bubble, said Patrick Chovanec, an associate professor at Tsinghua University in Beijing.
“Money is being dumped into property because there are no alternatives,” said Chovanec, adviser and former vice president of the Hong Kong venture capital firm Asia Mezzanine Capital Group. “Policy makers are nibbling around the edges of the core problem.”
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A bursting real estate bubble in China? That would be interesting.
“Money is being dumped into property because there are no alternatives,” said Chovanec, adviser and former vice president of the Hong Kong venture capital firm Asia Mezzanine Capital Group. “Policy makers are nibbling around the edges of the core problem.”
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A bursting real estate bubble in China? That would be interesting.
Thursday, June 24, 2010
Wednesday, June 23, 2010
New-home sales plunge 33 pct with tax credits gone - Yahoo! Finance
New-home sales plunge 33 pct with tax credits gone - Yahoo! Finance
Sales of new homes collapsed in May, sinking 33 percent to the lowest level on record as potential buyers stopped shopping for homes once they could no longer receive government tax credits.
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The smoke and mirrors economic policy is collapsing.
Sales of new homes collapsed in May, sinking 33 percent to the lowest level on record as potential buyers stopped shopping for homes once they could no longer receive government tax credits.
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The smoke and mirrors economic policy is collapsing.
Maywood, CA Plans To Disband ALL City Services
Maywood, CA Plans To Disband ALL City Services The small city of Maywood south of downtown Los Angeles plans to lay off almost all its employees, disband its police department and contract municipal operations to a neighboring city.
Facing a budget deficit of at least $450,000 and unable to get insurance because of a history of lawsuits, many involving the police department, the Maywood City Council said Monday night it had no choice but to adopt the plan.
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The article says this is "unprecedented" in California.
Facing a budget deficit of at least $450,000 and unable to get insurance because of a history of lawsuits, many involving the police department, the Maywood City Council said Monday night it had no choice but to adopt the plan.
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The article says this is "unprecedented" in California.
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