Saturday, May 28, 2011

HOA reform group targets law that allows Texas associations to repossess homes over HOA rules | Texas Watchdog

HOA reform group targets law that allows Texas associations to repossess homes over HOA rules | Texas Watchdog
So here is what appears to be the explanation the lawsuit that produced the subpoena (see below), according to one source:
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"The HOA-reform groups continue to be irritated by the man who helped craft and pass some of those laws, state Sen. John Carona, who heads Associa, a national company that refers to itself in press releases as “the leader in community association management.”
It’s an old fight – at least since 2006 disgruntled homeowners have been angered by Carona’s influence and operations. Carona has recently fought back in a civil lawsuit filed in Hays County against Bill Davis, a Friendswood lawyer and advocate for HOA reform. Carona’s Associations Inc. also names “ICDELIGHT” as a defendant, referring to an online handle that Davis used in speaking out against HOAs and Carona, whom he has called a “shakedown artist” in interviews. Davis calls the action a “SLAPP suit” designed to intimidate him and his colleagues from speaking out against Carona."

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The term SLAPP suit means "Strategic Lawsuit Against Public Participation," used by corporations to intimidate critics.

I still don't get what this weblog has to do with the lawsuit. The fact that my weblog is targeted is ironic, given that from time to time I have warned anonymous commenters about the importance of avoiding defamatory remarks, and I delete them whenever I notice them. That's because I knew that sooner or later the community association industry would retaliate against its critics with this sort of lawsuit.

For what it's worth--my understanding of Google's policies is that they will divulge 6 months worth of IP addresses. Anything older than that is purged. You can read about those policies at this website, which goes to a firm that helps people sue for internet defamation.

Look what I just got in my in box...

Hello,

Google has received a subpoena for information related to your Google account in a case entitled Associations, Inc., d/b/a, Associa, Principal Management Group, Inc., and Alliance Association Management, Inc. v.
William Donald Davis, a/k/a ICdeLight a/k/a/ IC_deLight, District Court of Hays County, Texas, 22nd Judicial District, Case No. 10-2312 (Internal Ref. No. 139950).

To comply with the law, unless you provide us with a copy of a motion to quash the subpoena (or other formal objection filed in court) via email at google-legal-support@google.com by 5pm Pacific Time on June 16, 2011, Google may provide responsive documents on this date.

For more information about the subpoena, you may wish to contact the party seeking this information at:

Kelly P. Chen
Munck Carter, LLP
12770 Coit Rd Ste 600
Dallas, TX 75251
(972)628-3600

Google is not in a position to provide you with legal advice.

If you have other questions regarding the subpoena, we encourage you to contact your attorney.

Thank you,

Google Legal Support

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I don't know what information John Carona's lawyer (Kelly Chen) is trying to get. I have never met William Davis or John Carona. For those who aren't up on these things, Associa is a property management firm run by John Carona, the Texas legislator/property manager whose name keeps popping up in connection with foreclosures and legislation. I have emailed Carona's lawyer and google legal to find out what they want. If anybody knows, clue me in.

Friday, May 27, 2011

Sen. John Carona defends controversial HOA rule | wfaa.com Dallas - Fort Worth

Sen. John Carona defends controversial HOA rule | wfaa.com Dallas - Fort Worth
Interesting viewing, because you get to see Carona deny that his policy is to have the attorney fees paid first and the association get its money sixth, then when the reporter tries to show him his own company's documents stating that policy, Carona flees, and has the reporter thrown out.

Wednesday, May 25, 2011

Contingency fee construction defect lawsuit settlement comes up short

“The community is in a situation where they have less than enough money to do the repairs they need to make. So they need to do so as efficiently as possible,” said HOA Attorney Jerry Orton.

Orton said a third of the settlement went to lawyers from another firm that handled the case. Homeowners aren’t happy.
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Thirty-three percent attorney contingency fee contracts may work well in personal injury cases, but can be disastrous in condo construction defect lawsuits. Condo complexes like this one face the prospect of falling into Tyler Berding's death spiral in future years.

I-TEAM: HOA foreclosures draw attention in Austin

“Property owners associations are there to preserve property value. In terms of whether the fees that we charge are large or not, they are reasonable for the kind of work that we do.”

But the payment plans these attorneys are using have captured the attention of Austin lawmakers.

HOA/homeowner relationships have spawned nearly 60 bills filed this session.

Janet Ahmad of the group Home Owners for Better Building said, “They have been gouging people, with all of these fees. They are losing their homes; they are pricing people out of the market.”

But Ahmad said no bills have made it through…and there are only two days left in the session.
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The score at the top of the ninth: HOA bar, 60. Consumers, 0.

HOA shadenfreude

A study conducted by Nevada psychology professor Gary Solomon suggested that oversight over a homeowner’s living conditions creates a two-tailed psychiatric disorder called “HOA Syndrome.”

Talking about his experience inside an HOA in Las Vegas, Solomon said, “I learned that residents, primarily principal homeowners, were living in a war zone, not identifiable by bombs, guns and burning buildings. Rather, a war zone masterfully orchestrated by a few fellow homeowners attempting to control their companion neighbors while making a few bucks on the side and gaining sadistic pleasure from watching their neighbors live in pain.”

See the Berding and McKenzie discussion at ECHO on June 18!

Booth 319, Santa Clara Convention Center. And on Saturday, June 18, we have our public discussion about whether common interest housing can survive the challenges of the 21st century.

Be there!

Illinois legislature addresses foreclosure costs to cities

Springfield, Ill. —

Banks and lending institutions responsible for foreclosures in Illinois would pay for the maintenance of thousands of vacant houses, rather than putting that financial burden on municipalities statewide under a plan in the Illinois House.

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Good idea. Thanks to Fred Pilot for this link.

Why Does the NYT Want the Government to Make Housing Unaffordable? | Beat the Press

Why Does the NYT Want the Government to Make Housing Unaffordable? | Beat the Press
"Actually no; it never looked like "things were improving" to people who follow the housing market. It looked like the tax credits were temporarily delaying the deflation of the housing bubble. This delay allowed banks and investors to have hundreds of billions of dollars in mortgages, which would be underwater today, taken off their books and replaced by Fannie and Freddie guaranteed loans, through sales or refinancing."
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This blog post is by Dean Baker, who I think is a very bright guy with a record of accurate predictions. He seems to think that housing is still overpriced by historical measures.

Monday, May 23, 2011

HOA scuffle in the Senate | Trail Blazers Blog | dallasnews.com

HOA scuffle in the Senate | Trail Blazers Blog | dallasnews.com
Two republicans argue about who is more anti-homeowner. Thanks to Fred Pilot for the link.

Continued real estate deflation making foreclosures unappealing to HOAs

HOAs file foreclosure notices “fairly regularly, but in 99% of the cases, the property is worth less than the underlying debt. Just because you get a house for $6,000 doesn’t mean you get a bargain on the home,” says Kurt De Meire, CEO of countyrecordsresearch.com, a foreclosure processing company.

“This is why it’s rare that associations follow through with their own foreclosures,” he says. “They don’t want the burden of the senior debt.”
In fact, most associations don’t even bother starting the foreclosure process, he says. “It’s a waste of their money to pursue a property for unpaid dues.”

De Meire says sometimes homeowners associations foreclose, evict the residents, then decide not to keep the senior loan or loans current. But using a foreclosure notice as a tool to persuade a homeowner to pay fees or force them out, he says, costs HOAs “several thousand dollars.”
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As residential real estate prices continue to deflate, foreclosure becomes an increasingly impractical means to recoup delinquent HOA assessments -- at least from the perspective of this foreclosure processing company head.

Sunday, May 22, 2011

Strategic defaults on mortgages - chicagotribune.com

Strategic defaults on mortgages - chicagotribune.com
"Strategic default — opting to walk away from a mortgage you can afford — isn't a new phenomenon in the housing crisis. But with home values continuing to decline, more owners are finding themselves in a position where they may see it as a savvy business decision to destroy their credit rather than wait years for prices to recover."
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This recovery is just storming along. I know--why don't we give more tax cuts to rich people?

Saturday, May 21, 2011

Vegas HOA Charged With Discrimination - Las Vegas News Story - KVVU Las Vegas

Vegas HOA Charged With Discrimination - Las Vegas News Story - KVVU Las Vegas
"A Las Vegas homeowners association is accused of restricting its housing to residents older than 55, according to the U.S. Department of Housing and Urban Development.

The agency on Friday charged Lakeside Village Homeowners Association and its management company, Castle Management and Consulting, LLC, with discriminating against families with children through illegal age requirements."

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Thanks to Rodney Gray for this pointer.

HOA Syndrome Is Real, Nevada Professor Claims - Phoenix News Story - KPHO Phoenix

HOA Syndrome Is Real, Nevada Professor Claims - Phoenix News Story - KPHO Phoenix
"What is the treatment for HOA Syndrome?

It's pretty simple, said Solomon. Just do what Lantry and his family did, move out and never move into an HOA neighborhood again.

"Why would I want another incompetent level of government standing in judgment of me?" said Lantry.

HOA Syndrome is not recognized as an anxiety disorder by the psychology community. However, Solomon said that it's only a matter of time."

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Well, at least there is a treatment. Thanks to Fred Fischer for this link.

Wednesday, May 18, 2011

HOA Tries To Evict Woman Dying Of Cancer - Phoenix News Story - KPHO Phoenix

HOA Tries To Evict Woman Dying Of Cancer - Phoenix News Story - KPHO Phoenix
The Florence Gardens Mobile Home Association is trying to evict Carolyn and her husband because they don't meet the minimum age requirement.

It's a 55 and older community.

Carolyn is 51. Her husband 53.

"Where am I supposed to go?" said Silvia. "I have cancer. Where am I supposed to go? This is my home."

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HOA attorney Charles Maxwell won't stand for having Carolyn stay in the subdivision. Claims its a covenant violation. Read the whole thing and see if you agree. Thanks to Fred Fischer for the link.

Monday, May 16, 2011

Property owner battles HOA in courts of law, public opinion



OMAHA, Neb. (AP) -- Timothy Adams isn't backing down.

The Omaha resident has turned a dispute with his neighborhood association into a public battle, putting up billboards, launching a website and taking to social media to publicize a lawsuit filed against him over the installation of solar panels on the roof of his home near Lake Zorinsky.

"It's not about money," said Adams, 49. "It's about sticking up for principles. If it's about spending tens of thousands of dollars educating people, I will do it."

Sunday, May 15, 2011

Ron Paul: I Would Not Have Voted For The 1964 Civil Rights Act (VIDEO) | TPMDC

Ron Paul: I Would Not Have Voted For The 1964 Civil Rights Act (VIDEO) | TPMDC
"Just about a year after his son Rand Paul stepped in it when he told Rachel Maddow he was opposed to provisions of the 1964 Civil Rights Act, Rep. Ron Paul (R-TX) told Chris Matthews Friday he wouldn't have voted for the law in the first place had he been in Congress at the time."
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These father and son cranks are great examples the libertarian movement. Libertarians dress, walk, and talk like normal people so people don't realize how outlandish their ideas are. Rand and Ron look like plain old folks, but if they dressed to suit their ideas they'd be wearing purple velvet leisure suits and propeller beanies.

A pattern of HUD projects stalled or abandoned - The Washington Post

A pattern of HUD projects stalled or abandoned - The Washington Post
"The federal government’s largest housing construction program for the poor has squandered hundreds of millions of dollars on stalled or abandoned projects and routinely failed to crack down on derelict developers or the local housing agencies that funded them.

Nationwide, nearly 700 projects awarded $400 million have been idling for years, a Washington Post investigation found. Some have languished for a decade or longer even as much of the country struggles with record-high foreclosures and a dramatic loss of affordable housing."

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Federal housing policy has been one disaster after another since the 1960s.

Saturday, May 14, 2011

Thinking about rights and liberties

The other day I ended up talking with a neighbor of mine. When I told him that I was about to start teaching a basic American Government course this summer, he launched into a political rant about constitutional rights, seen from what I would call a far-right perspective. I think, though, that even for someone with a different political orientation these observations might have some relevance. What struck me was the difference between the way he conceived of a constitutional right and the way I think about rights and liberties. As a non-lawyer, for him rights and liberties are absolute and the ones he doesn't like don't exist at all. So, for example, he think there is an absolute right to private property, but he thinks there is no right to privacy. He think "The Founding Fathers" intent binds us today, and that they (he believes) created an absolute right to private property, but that judges invented that whole right to privacy thing, so it doesn't exist at all. These liberties are like light switches--either on or off.

People with legal educations generally don't think about rights and liberties this way, because it doesn't work very well in practice. Rights and liberties frequently come into conflict with each other. If they are all absolute, there is no way to decide which one trumps the other. The Founders didn't give us a priority list to decide whether freedom of speech trumps private property. And using the Founders intent as a guide has been so thoroughly discredited as an impossible way to do things that nobody with any legal experience even tries. What did the founders intend about regulation of the internet, or genetic engineering, or nuclear energy? Nothing. That's why right wing judges like Scalia speak of original meaning, not original intent. They look at the text of the constitution and of legislation and try to figure out what they call the original meaning, not the intent, as expressed by the people who wrote it. There is too much compromise, logrolling, and ambiguity to ever discern a single "intent" among all the people who wrote something or voted for it. I don't find that particularly satisfactory either, in most cases, but it is a whole lot more sensible than the hopeless search for the unicorn of original intent.

But my main point is this: making decisions involving conflicting rights and liberties, and powers and duties, is hard and conflictual, and even the professionals disagree about how to do it. HOA and condo association governance puts individuals in charge of administering mini-governments where conflicts of rights and obligations occur all the time, often involving very complicated issues that implicate not only the association's governing documents, but state laws and even constitutional rights. Unfortunately, right now little attention is paid to educating people in how to make these decisions. To the extent that is done at all, it is usually done by lawyers and managers who are working for the BOD (or hoping to, using one of their "free educational seminars" that are actually fishing expeditions for clients). These folks tend to offer self-serving interpretations, such as the "obey the board" perspective. Why? Because they become the Board's lawyer or manager, and don't represent the individuals.

I hate to dump more responsibilities on governments, but who else will do it? In an article that I have coming out soon in Public Administration Review, I ask whether maybe public administration professionals and educators should be doing this. Maybe it's a pipe dream, but it is worth a thought.