Homeless women to stay in Frisco home for now after HOA loses motion | Dallas Morning News

Homeless women to stay in Frisco home for now after HOA loses motion | Dallas Morning News



"MCKINNEY — A transitional living program for homeless young women will be allowed for now to continue operating in a Frisco neighborhood. District Judge Jill Willis ruled Friday that a Frisco homeowners association failed to meet its burden for temporary injunctive relief. The PR2 Homeowners Association had sought to keep the nonprofit City House from moving more women into its home while a civil case is pending. Two women and one child live there now. The case filed by the HOA against City House continues. No trial date has been set. Chad Robinson, who represents the HOA board for the Plantation Resort 2 community, declined to comment after the ruling. He said he needed to consult with his clients. Robinson argued during Friday’s hearing that the HOA’s deed restrictions require that homes be used for single-family residential purposes only. He said single-family use means people who are related by blood or by law. Texas courts have also allowed other limited uses, such as nannies or an incidental renter. He argued that City House’s transitional living program for up to eight women was not a single-family residential use."

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So this looks like an HOA-flavored NIMBY dispute. The people who want to keep out the "undesirables" have CC&Rs to use as their legal lever.

Myrtle Beach area HOA owners complain

http://www.myrtlebeachonline.com/2014/10/30/4571043/myrtle-beach-area-hoa-complaints.html

Guess what? There was another public meeting about possible legislation at which people living in HOAs and condos complained about developers and board members making their lives miserable.

If I am reading all this correctly, they can be assured that more legislative tinkering will take place at some point in the near future.  That is all.

Developer buys scores of Detroit's worst houses in $3.2million 'blight bundle'

http://www.dailymail.co.uk/news/article-2813166/The-blight-bundle-6-300-Detroit-s-worst-houses-real-estate-developer-just-bought-3-2million.html


"Anywhere else, a property developer who buys a bundle of foreclosed houses, abandoned factories and disused churches for a mere $500 a piece would be hailed as a genius.
But this is Detroit. And Herb Strather's $3.2million purchase of 6,350 homes is being called foolhardy.  To be sure, there are plenty of gems in the city's 'blight bundle.' A 170,00-square-foot factory that's still in good shape, a three-story brick home built in 1915 that most recently sold for $185,000, a lovely Tudor-style house that's ready to move into and a five-bedroom that simply needs a new roof.  But city officials tell the Detroit News that 2,000 of the properties are vacant lots. More than 3,000 will need to be torn down immediately...The city put strenuous rules on the buys of the 'blight bundle' requiring the buyer to either demolish and clean up all 6,350 properties within the next six months or offer a development plan. 'Now what we have to do is find out if indeed this group is serious about taking on such a task. And if they're willing to do so, we're willing to listen,' Wayne County Chief Deputy Treasurer David Szymanski told the Huffington Post. 
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And at an estimated cost of $10,000 for each demo, the development group could have to pay up to $30 million just to clear the ground--almost ten times their current investment. Is that how things will unfold, or is there a plan to cherry-pick the nicest properties and profit from them piecemeal?  The city is looking at major redevelopment, but private investors may well be thinking about making money off the good stuff.

Marin County HOA nixes solar panels. Because.

http://www.mercurynews.com/business/ci_26758081/marin-resident-denied-solar-panels-by-homeowners-association

Same old story. The HOA has virtually unfettered discretion to say no.   They did.

Flagpole fight attracts attention of Hancock County prosecutor - 13 WTHR Indianapolis

Flagpole fight attracts attention of Hancock County prosecutor - 13 WTHR Indianapolis: HANCOCK COUNTY - There's a new twist in a veteran's fight to keep his flagpole despite threats by his homeowners association. The homeowner says it stands for freedom, but the homeowners association says it violates policy.

The story generated hundreds of comments on WTHR's social media pages. Now it appears the prosecutor in Hancock County could join the front yard feud with a civil lawsuit.

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This is the first known instance of a local prosecutor jumping into an HOA flag flap amid the usual negative media attention and public comment directed at the HOA. According to the report, the prosecutor's office is giving the HOA until November 1st to back down.

Worst abuse of adhesion contracts ever?

http://www.citylab.com/work/2014/10/mapping-where-jimmy-johns-ex-employees-are-forbidden-to-make-sandwiches/381634/

Jimmy John's makes the kids who slap sandwiches together sign a non-competition agreement that effectively makes them unemployable in the  fast food industry for two years after they quit.

Armored vehicle helps collect civil judgment in small town

Armored vehicle helps collect civil judgment in small town

"When officials in the tiny Town of Stettin in Marathon County went to collect a civil judgment from 75-year-old Roger Hoeppner this month, they sent 24 armed officers. And an armored military vehicle."

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The police chief says that while Mr. Hoeppner was not known to be violent, he was "argumentative."  That's why the police are not apologetic for this ludicrous show of military force. The old police motto "To Protect and Serve" only makes sense these days if you realize that the police are protecting and serving themselves much of the time.

Overmyer v. Frick--new theory for HOA rights?

http://caselaw.lp.findlaw.com/scripts/getcase.pl?court=US&vol=405&invol=174

The Democratic candidate for the US House of Representatives from the 11th District in Pennsylvania is a civil rights attorney named Andy Ostrowski.  He has a theory that HOAs violate a principle he sees in the US Supreme Court case of Overmyer v. Frick, which is linked above.  The issue in the case involved an Ohio law that allowed people--usually debtors trying to get one more chance from their creditor--to give up all their due process rights and confess judgment in advance, if they defaulted one more time.  This was legal under an old doctrine called "cognovit."  The Supreme Court ruled that  cognovit notes were not unconstitutional, provided that the waivers of due process were adequate.  Ostowski thinks that maybe HOAs and condos require inadequate notice and the agreements are unconstitutional.  Interesting theory, but I think it is far-fetched. The problem is that the court ultimately ruled in favor of cognovit.

Here is Ostrowski's statement of how he thinks this applies:
https://www.facebook.com/Floridiansact/posts/637732836340842


And here is the court's explanation for upholding the cognovit provision. You be the judge.

"Even if, for present purposes, we assume that the standard for waiver in a corporate-property-right case of this kind is the same standard applicable to waiver in a criminal proceeding, that is, that it be voluntary, knowing, and intelligently made, Brady v. United States, [405 U.S. 174, 186]   397 U.S. 742, 748 (1970); Miranda v. Arizona, 384 U.S., at 444 , or "an intentional relinquishment or abandonment of a known right or privilege," Johnson v. Zerbst, 304 U.S. 458, 464 (1938); Fay v. Noia, 372 U.S., at 439 , and even if, as the Court has said in the civil area, "[w]e do not presume acquiescence in the loss of fundamental rights," Ohio Bell Tel. Co. v. Public Utilities Comm'n, 301 U.S. 292, 307 (1937), that standard was fully satisfied here.

"Overmyer is a corporation. Its corporate structure is complicated. Its activities are widespread. As its counsel in the Ohio post-judgment proceeding stated, it has built many warehouses in many States and has been party to "tens of thousands of contracts with many contractors." This is not a case of unequal bargaining power or overreaching. The Overmyer-Frick agreement, from the start, was not a contract of adhesion. There was no refusal on Frick's part to deal with Overmyer unless Overmyer agreed to a cognovit. The initial contract between the two corporations contained no confession-of-judgment clause. When, later, the first installment note from Overmyer came into being, it, too, contained no provision of that kind. It was only after Frick's work was completed and accepted by Overmyer, and when Overmyer again became delinquent in its payments on the matured claim and asked for further relief, that the second note containing the clause was executed.

"Overmyer does not contend here that it or its counsel was not aware of the significance of the note and of the cognovit provision. Indeed, it could not do so in the light of the facts. Frick had suggested the provision in October 1966, but the first note, readjusting the progress payments, was executed without it. It appeared in the second note delivered by Overmyer's own counsel in return for substantial benefits and consideration to Overmyer. Particularly important, it would seem, was the [405 U.S. 174, 187]   release of Frick's mechanic's liens, but there were, in addition, the monetary relief as to amount, time, and interest rate.

"Overmyer may not have been able to predict with accuracy just how or when Frick would proceed under the confession clause if further default by Overmyer occurred, as it did, but this inability does not in itself militate against effective waiver. See Brady v. United States, 397 U.S., at 757 ; McMann v. Richardson, 397 U.S. 759, 772 -773 (1970).

"We therefore hold that Overmyer, in its execution and delivery to Frick of the second installment note containing the cognovit provision, voluntarily, intelligently, and knowingly waived the rights it otherwise possessed to prejudgment notice and hearing, and that it did so with full awareness of the legal consequences.

Insurance Co. v. Morse, 20 Wall. 445 (1874), affords no comfort to the petitioners. That case concerned the constitutional validity of a state statute that required a foreign insurance company, desiring to qualify in the State, to agree not to remove any suit against it to a federal court. The Court quite naturally struck down the statute, for it thwarted the authority vested by Congress in the federal courts and violated the Privileges and Immunities Clause."

Delaware ombudsman office getting started

http://www.delawareonline.com/story/news/local/2014/10/20/ombudsman-weigh-homeowner-association-disputes/17639817/

This legislation is only a few months old. One more state goes the ombudsman route, giving unit owners someplace to turn other than the courts. It is a necessary reform, but not sufficient to address the unmet needs.

You need this condo pony

http://www.npr.org/2014/10/21/357816986/you-definitely-need-this-condo-pony-and-other-products-from-skymaul?utm_source=facebook.com&utm_medium=social&utm_campaign=npr&utm_term=nprnews&utm_content=2045

And to think I never knew there was such a thing as a condo pony.

Property manager accused of stealing $180,000 from HOAs

http://www.wsbtv.com/news/news/local/chamblee-man-allegedly-stole-50000-homeowners-asso/nhpD3/?ref=cbTopWidget

"A Chamblee property management company owner is accused of stealing tens of thousands of dollars from homeowner’s associations. 

So far, police in Dunwoody and Chamblee tell Channel 2 Action News reporter Mike Petchenik they’ve filed charges against Michael Sisson, and they say more charges are possible. Darwin Johnson told Petchenik his Midtown condo association hired Sisson a few years ago to manage their property near Piedmont Park."

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There have been so many such incidents around the country that I have  lost count. Industry representatives  invariably say these are "isolated incidents," which would be true if you stretch the meaning  of  "isolated" to include every state where you find a significant number of HOAs and/or condos.

Sarah Jessica angers homeowners association - Yahoo Maktoob News

Sarah Jessica angers homeowners association - Yahoo Maktoob News: Parker returned to the building earlier this month to stage a photoshoot for her footwear brand, placing the shoes on the steps and posting pictures of them on her Instagram.com page.

However, the stunt has infuriated the local homeowners association, who claim the actress failed to obtain proper permission to gain access to the steps, reports contactmusic.com.

Gerald Banu, president of the Perry Street Association, said: "I heard about the shoot. They didn't get the permission from the owner. The situation with 'SATC' visitors is still very intense.
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Sex, shoes and the HOA. Maybe this will lead to a Hollywood production. Been a while since the Falls at Arcadia X-Files episode.

Veteran not backing down after homeowners association says his flag pole must go | Fox 59

Veteran not backing down after homeowners association says his flag pole must go | Fox 59: “We do not tell anyone they cannot fly a flag. What we are having a problem with is the flag pole. Flag poles are not allowed in this association,” said Kaye Eckert, president of the Fieldstone HOA board.

Eckert said the association has tried to compromise.

In September, they sent a letter saying the couple could keep the flag pole, if they paid a $500 fine to cover legal costs. Bob Willits would not budge.

“That flag is very personal to me,” said Willits, “That means a lot to me.”

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More bad press for Privatopia, Indiana secktor. Film at 10 on Fox 59, Indianapolis.

HOA troubles? Legislators want to hear them : News : CarolinaLive.com

HOA troubles? Legislators want to hear them : News : CarolinaLive.com: Have any concerns, questions or issues with your homeowners' association?

The Horry County Legislative Delegation will host a public hearing on homeowners' association issues on Wednesday, Oct. 29, at 7 p.m. in Horry Georgetown Technical College's Burroughs and Chapin Auditorium.

Connie Turner, administrative assistant for the delegation, said the format will be question and answer.
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Trouble in Privatopia, South Carolina sector? The Legislature wants to know.

Least subtle walling out of the poor award

http://www.dailymail.co.uk/news/article-2799262/no-entry-haves-wealthy-michigan-suburb-erect-fences-middle-streets-stop-detroit-nots-driving-city.html

Building a brick wall across the street sends the message: if you are from Detroit, you aren't welcome in Grosse Pointe Park.

Pay to Prey: Report on privatization

http://www.prwatch.org/news/2014/10/12620/pay-to-prey-governors-facilitate-the-predatory-outsourcing-of-americas-public-services

This is a report on the way Republican governors  have allowed corporations to profit from privatization deals at the expense of the public and the people who are supposed to be receiving the services.  Some of the stories are pretty lurid.  From  the report:

"Outsourcing of public services is a big business. Some experts estimate that $1 trillion out of the $6 trillion the federal government, together with state and local governments, spend annually are handed over to private contractors. In 2010, an electoral landslide ushered in a new breed of governors. Aided and abetted by corporate-funded legislative and lobbying groups, such as the American Legislative Exchange Counsel (ALEC), these governors pushed the envelope of outsourcing and privatization, selling public services to for-profit firms with their powerful political lobbies and related campaign contributions. In this process, transparency and accountability are lost and the public loses its ability to influence decision makers through normal democratic channels. Shared prosperity also suffers when good middle class jobs are lost to low-road, low-wage employers. In states across the country, schools, health care, prisons, prison food, water services, road services, state liquor sales, state economic development authorities, legal services, and even child support services were outsourced to private, for-profit companies. While the governors spoke of tight budgets and cost savings, a pattern emerged of influential corporate lobbyists and deep-pocketed campaign contributors In this effort to shrink government and sell off the prosperous parts to private interests, the winners are large corporations with a phalanx of lobbyists and campaign coffers big enough to buy political influence. All too often, taxpayers find themselves on the losing side."

The Making of Ferguson, MO

http://www.epi.org/publication/making-ferguson/


"In August 2014, a Ferguson, Missouri, policeman shot and killed an unarmed black teenager. Michael Brown’s death and the resulting protests and racial tension brought considerable attention to that town. Observers who had not been looking closely at our evolving demographic patterns were surprised to see ghetto conditions we had come to associate with inner cities now duplicated in a formerly white suburban community: racially segregated neighborhoods with high poverty and unemployment, poor student achievement in overwhelmingly black schools, oppressive policing, abandoned homes, and community powerlessness."

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This is a detailed and balanced account of how Ferguson became what it is today. Public  policies, real estate industry practices, and other institutional factors contributed to the situation.  My colleague Dennis Judd's article about segregative practices  is cited. 

SFR Investments v. US Bank

The Nevada Supreme court has ruled that:

"NRS 116.3116 gives a homeowners' association (HOA) a 
superpriority lien on an individual homeowner's property for up to nine 
months of unpaid HOA dues. With limited exceptions, this lien is "prior to 
all other liens and encumbrances" on the homeowner's property, even a 
first deed of trust recorded before the dues became delinquent. NRS 
116.3116(2). We must decide whether this is a true priority lien such that 
its foreclosure extinguishes a first deed of trust on the property and, if so, 
whether it can be foreclosed nonjudicially. We answer both questions in 
the affirmative and therefore reverse."

The result is that an investment company bought a house for peanuts at an HOA foreclosure sale, and the sale wiped out the first mortgage on a house worth hundreds of thousands of dollars.  Wow.  I have placed the full opinion on mckenzie-law.wikispaces.com for anybody to download.

Construction company builds dream home--on the wrong lot

http://www.dailymail.co.uk/news/article-2793069/couple-outraged-construction-company-built-680-000-oceanside-dream-home-wrong-lot.html

I've heard of banks foreclosing on the wrong house, but this  is a first.

Bad news for builders?

http://finance.yahoo.com/blogs/talking-numbers/this-chart-spells-trouble-for-home-builders-215720049.html

Thanks to Fred Pilot for this link to a financial story about an exhange traded fund (ETF) that includes the home building industry.  Bad news for builders?
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'They may be called home builders,but this year their stocks are portfolio wreckers.Those who had the misfortune of buying the ETF that tracks the home builders (trading under the ticker symbol XHB) at the beginning of the year are in the red by 14 percent.The XHB is now trading at its lowest levels this year and according to the charts, it could get a lot worse."