State must improve policing of condo fraud | Miami Herald
Gee--do you think? Actually there are about 50 states that should improve their policing of condo and HOA fraud. But perhaps a person could be pardoned for being a bit skeptical about any state or local government's intention to actually do something about it. Local governments have been using CIDs as cash cows for decades, and the profits come from collecting property taxes and not providing services. Criminal investigations and prosecutions for white collar crime are expensive. Got to the police or prosecutors with a condo fraud issue and they tell you it's a civil matter.
Monday, March 28, 2016
Multiple South Florida condos under state investigation for election fraud | Miami Herald
Multiple South Florida condos under state investigation for election fraud | Miami Herald
"Frustrated condo residents say they have few options. Local police agencies say that most of the complaints do not involve criminal activities and can be handled in civil courts. Prosecutors say police or the DBPR are responsible for enforcing the laws, but the state agency argues that it cannot investigate complaints about actions that fall outside its jurisdiction or that lack sufficient evidence. After receiving several complaints in recent months from residents alleging financial mismanagement, lack of transparency and electoral fraud in condominiums, el Nuevo Herald and Univisión 23 launched an investigation. Their findings included at least 84 fraudulent signatures on ballots for the board of directors at The Beach Club. From the more than 500 complaints filed with the DBPR by condo owners in Miami-Dade in 2015, the investigative team focused on the 81 cases still under state investigation. Of those, 27 involved alleged irregularities in elections to boards of directors — people who approve lucrative contracts for the condos and 31 involved a lack of access to information that owners have a right to obtain under state laws. Another nine cases involved allegations of financial mismanagement. The rest involved the unauthorized use of reserve funds, disputes over fines and other issues."
"Frustrated condo residents say they have few options. Local police agencies say that most of the complaints do not involve criminal activities and can be handled in civil courts. Prosecutors say police or the DBPR are responsible for enforcing the laws, but the state agency argues that it cannot investigate complaints about actions that fall outside its jurisdiction or that lack sufficient evidence. After receiving several complaints in recent months from residents alleging financial mismanagement, lack of transparency and electoral fraud in condominiums, el Nuevo Herald and Univisión 23 launched an investigation. Their findings included at least 84 fraudulent signatures on ballots for the board of directors at The Beach Club. From the more than 500 complaints filed with the DBPR by condo owners in Miami-Dade in 2015, the investigative team focused on the 81 cases still under state investigation. Of those, 27 involved alleged irregularities in elections to boards of directors — people who approve lucrative contracts for the condos and 31 involved a lack of access to information that owners have a right to obtain under state laws. Another nine cases involved allegations of financial mismanagement. The rest involved the unauthorized use of reserve funds, disputes over fines and other issues."
Sunday, March 27, 2016
Deposition says HOA fraud figure was warned about FBI raids by State Supreme Court Justice Saitta | Las Vegas Review-Journal
Deposition says HOA fraud figure was warned about FBI raids by State Supreme Court Justice Saitta | Las Vegas Review-Journal
"Nevada Supreme Court Justice Nancy Saitta “tipped off” a key government target to FBI-led raids in an investigation of massive homeowners association fraud, according to a sworn deposition obtained by the Las Vegas Review-Journal. In the deposition, Lisa Kim, who ran a company that managed HOAs linked to the long-running investigation, testified that the FBI’s target, the late lawyer Nancy Quon, told her about the tip on Sept. 24, 2008, the first of two days of court-approved law enforcement searches across the valley...Saitta, who was first elected to the Supreme Court in 2006, presided over construction defect cases while she was a Clark County District Court judge. Quon often appeared before her."
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Ever since the news of this investigation broke, there were stories about alleged connections between judges and prosecutors and the HOA fraud ring, especially construction defect attorney Nancy Quon. Some stories suggested that such connections explained why the Nevada US Attorney's Office was kicked off the case, which was taken over by a special white collar crime unit from Washington, DC. All the documents on that, though, are tippy-top, hush-hush, secret. To wit: "The epic federal case wrapped up in January with more than 40 convictions, but the government continues to keep a lid on a super-secret investigation into the leak allegations that did not result in any criminal charges. Kim, who pleaded guilty and cooperated with prosecutors, said in the June 9 deposition that Quon also told her a member of the U.S. attorney’s office had tipped her to the investigation months before the raids. Quon did not identify her source at the office, which then was overseeing the high-profile prosecution...Quon told Kim she was warned by a government source to watch her back. “She said that someone in the U.S. attorney’s office had told her that there’s this big HOA thing going on and that things were going to be bad really soon … and that I don’t know what you’re doing with Benzer, but just be really careful,” Kim testified."
Jeff German of the Las Vegas Review-Journal has done an incredible job on this case for several years. This story is a blockbuster, and I strongly urge you to follow the link and read the whole thing.
"Nevada Supreme Court Justice Nancy Saitta “tipped off” a key government target to FBI-led raids in an investigation of massive homeowners association fraud, according to a sworn deposition obtained by the Las Vegas Review-Journal. In the deposition, Lisa Kim, who ran a company that managed HOAs linked to the long-running investigation, testified that the FBI’s target, the late lawyer Nancy Quon, told her about the tip on Sept. 24, 2008, the first of two days of court-approved law enforcement searches across the valley...Saitta, who was first elected to the Supreme Court in 2006, presided over construction defect cases while she was a Clark County District Court judge. Quon often appeared before her."
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Ever since the news of this investigation broke, there were stories about alleged connections between judges and prosecutors and the HOA fraud ring, especially construction defect attorney Nancy Quon. Some stories suggested that such connections explained why the Nevada US Attorney's Office was kicked off the case, which was taken over by a special white collar crime unit from Washington, DC. All the documents on that, though, are tippy-top, hush-hush, secret. To wit: "The epic federal case wrapped up in January with more than 40 convictions, but the government continues to keep a lid on a super-secret investigation into the leak allegations that did not result in any criminal charges. Kim, who pleaded guilty and cooperated with prosecutors, said in the June 9 deposition that Quon also told her a member of the U.S. attorney’s office had tipped her to the investigation months before the raids. Quon did not identify her source at the office, which then was overseeing the high-profile prosecution...Quon told Kim she was warned by a government source to watch her back. “She said that someone in the U.S. attorney’s office had told her that there’s this big HOA thing going on and that things were going to be bad really soon … and that I don’t know what you’re doing with Benzer, but just be really careful,” Kim testified."
Jeff German of the Las Vegas Review-Journal has done an incredible job on this case for several years. This story is a blockbuster, and I strongly urge you to follow the link and read the whole thing.
Why the system of rail privatisation in the UK has been a disaster | British Politics and Policy at LSE
Why the system of rail privatisation in the UK has been a disaster | British Politics and Policy at LSE
Why? Because these infrastructure privatization schemes in Britain and the US are set up as gigantic ripoffs of the public sector and taxpayers that enrich private investors. All the significant risks are borne by the taxpayers, while the investors get the profits and can walk away any time they want.
"Some of the problems of the privatised rail system are well known. Perhaps best known is the systematic gaming of the train operating franchise system. Franchisees – as in the catastrophic case of the East Coast Line – can walk away from the franchise without serious penalties when the ludicrously unreal projections that won the contract in the first place turned out to be fantasies. Less known, and systematically documented in the CRESC report, is the extent to which the train operators have been able to manipulate the licensing system so that they effectively pay dividends to shareholders from direct public subsidy; between 1997 and 2012 on the West Coast Mainline, Virgin Trains paid out a total of £500 million in dividends and received a direct subsidy of £2.5 billion. Worse still, the report highlights the large, hidden and indirect subsidies to train operating companies which have completely wrecked the balance sheet of the quasi-public Network Rail company that provides infrastructure."
Why? Because these infrastructure privatization schemes in Britain and the US are set up as gigantic ripoffs of the public sector and taxpayers that enrich private investors. All the significant risks are borne by the taxpayers, while the investors get the profits and can walk away any time they want.
"Some of the problems of the privatised rail system are well known. Perhaps best known is the systematic gaming of the train operating franchise system. Franchisees – as in the catastrophic case of the East Coast Line – can walk away from the franchise without serious penalties when the ludicrously unreal projections that won the contract in the first place turned out to be fantasies. Less known, and systematically documented in the CRESC report, is the extent to which the train operators have been able to manipulate the licensing system so that they effectively pay dividends to shareholders from direct public subsidy; between 1997 and 2012 on the West Coast Mainline, Virgin Trains paid out a total of £500 million in dividends and received a direct subsidy of £2.5 billion. Worse still, the report highlights the large, hidden and indirect subsidies to train operating companies which have completely wrecked the balance sheet of the quasi-public Network Rail company that provides infrastructure."
Why Reston, Virginia, Still Inspires Planners 50 Years Later - CityLab
Why Reston, Virginia, Still Inspires Planners 50 Years Later - CityLab
Reston is one of the original New Towns that inspired many imitators, most of them on a much smaller scale. For those who don't like CIDs, you may reflexively hate the idea that anybody would admire Reston. The ideas--his own and those of others--that he implemented at Reston have shaped suburban development ever since. Private planning, private funding, private government, mixed use development...and on and on. But Simon, who I met years ago, was something of a utopian visionary who sincerely wanted to create the ideal place to live. He reminded me of Ebenezer Howard, who invented the whole "Garden City" idea back in 1897, with his plans to build entirely new cities on undeveloped land. Few developers try to build Reston-sized communities these days, because the risk is so enormous. Reston, Columbia, Radburn, Rancho Bernardo, and a few other huge private communities are still around after many decades.
Reston is one of the original New Towns that inspired many imitators, most of them on a much smaller scale. For those who don't like CIDs, you may reflexively hate the idea that anybody would admire Reston. The ideas--his own and those of others--that he implemented at Reston have shaped suburban development ever since. Private planning, private funding, private government, mixed use development...and on and on. But Simon, who I met years ago, was something of a utopian visionary who sincerely wanted to create the ideal place to live. He reminded me of Ebenezer Howard, who invented the whole "Garden City" idea back in 1897, with his plans to build entirely new cities on undeveloped land. Few developers try to build Reston-sized communities these days, because the risk is so enormous. Reston, Columbia, Radburn, Rancho Bernardo, and a few other huge private communities are still around after many decades.
Saturday, March 26, 2016
In France, a Retirement Co-op Ensures Seniors Are Not Treated as Commodities
In France, a Retirement Co-op Ensures Seniors Are Not Treated as Commodities
"They didn't want to end up in a traditional retirement home. They wanted to remain the actors in their own lives. Seven years after their first discussions about how to age well, a group of retired people is starting to build the first co-op for the aging. Non-speculation, democracy and environmental concern are the foundations of the "Chamarel-Les Barges" project, located in a neighborhood of Vaulx-en-Velin, east of Lyon, France. The project is so inspiring that the bank has even conferred a 50-year loan to the founders, who are in their 60s."
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Housing cooperatives are not popular with the real estate industry, bankers, or title companies. They love condominium ownership because it creates many individual units that can be bought and sold, creating a whole lot of business for everybody involved in real estate transactions. But most of the people who live in co-ops find them a good living and ownership arrangement. In a co-op, each resident has a proprietary lease that entitles them to exclusive occupancy of their unit, and also a share of stock in the corporation that owns the entire property. In other words, each resident is a tenant, and collectively they are their own landlord. There is only one blanket mortgage on the whole property. And in order to sell a share, the new prospective owner has to be approved by the co-op board. Usually co-op shares are not viewed primarily as investments, as many condominium units are, so there is more permanence and less selling at the slightest sign of falling real estate prices. There seems to be less conflict in co-ops than in condominiums, and on the whole they survived the crash better than condominiums, or at least that seems to be the predominant opinion.
"They didn't want to end up in a traditional retirement home. They wanted to remain the actors in their own lives. Seven years after their first discussions about how to age well, a group of retired people is starting to build the first co-op for the aging. Non-speculation, democracy and environmental concern are the foundations of the "Chamarel-Les Barges" project, located in a neighborhood of Vaulx-en-Velin, east of Lyon, France. The project is so inspiring that the bank has even conferred a 50-year loan to the founders, who are in their 60s."
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Housing cooperatives are not popular with the real estate industry, bankers, or title companies. They love condominium ownership because it creates many individual units that can be bought and sold, creating a whole lot of business for everybody involved in real estate transactions. But most of the people who live in co-ops find them a good living and ownership arrangement. In a co-op, each resident has a proprietary lease that entitles them to exclusive occupancy of their unit, and also a share of stock in the corporation that owns the entire property. In other words, each resident is a tenant, and collectively they are their own landlord. There is only one blanket mortgage on the whole property. And in order to sell a share, the new prospective owner has to be approved by the co-op board. Usually co-op shares are not viewed primarily as investments, as many condominium units are, so there is more permanence and less selling at the slightest sign of falling real estate prices. There seems to be less conflict in co-ops than in condominiums, and on the whole they survived the crash better than condominiums, or at least that seems to be the predominant opinion.
Friday, March 25, 2016
N.J. men accused of stealing more than $75K from condominium | NJ.com
N.J. men accused of stealing more than $75K from condominium | NJ.com
Yesterday I was contacted by somebody who is interested in making more people aware of this situation through various means. The person says it is a much larger story than the article indicates. I am not authorized to give out this person's contact information, but if anybody wants to follow up and learn more about the case, send me an email at ecmlaw@gmail.com and I will pass your contact info along to the person in question.
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Three men allegedly stole at least $75,000 from a Jersey City condominium, pocketing money intended for repairs, loan repayments and other costs. Raymond Gonzalez and Raul Miranda, of Hackensack-based property management company, RPM Group, and Jose Astuto, owner of Queen Remodeling Corp., in North Bergen, have been charged with conspiring to steal between $75,000 and $500,000 from the Berkeley Carteret Condominium Association, according to an indictment provided on Wednesday by the Hudson County Prosecutor's Office. They allegedly stole money from residents of the Jersey City community--located at 53 Duncan Ave.--intended for general property maintenance, loan repayment and other purposes. Representatives for the condominium could not immediately be reached for comment. The three men are charged with money laundering and conspiracy, according to the indictment. Gonzalez and Miranda face additional theft by deception and theft by failure to make required disposition of property received charges, according to the indictment. Assistant Prosecutor Gene Rubino would not provide additional information on the allegations against the men. The men did not immediately return calls for comment on Wednesday.
Yesterday I was contacted by somebody who is interested in making more people aware of this situation through various means. The person says it is a much larger story than the article indicates. I am not authorized to give out this person's contact information, but if anybody wants to follow up and learn more about the case, send me an email at ecmlaw@gmail.com and I will pass your contact info along to the person in question.
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Three men allegedly stole at least $75,000 from a Jersey City condominium, pocketing money intended for repairs, loan repayments and other costs. Raymond Gonzalez and Raul Miranda, of Hackensack-based property management company, RPM Group, and Jose Astuto, owner of Queen Remodeling Corp., in North Bergen, have been charged with conspiring to steal between $75,000 and $500,000 from the Berkeley Carteret Condominium Association, according to an indictment provided on Wednesday by the Hudson County Prosecutor's Office. They allegedly stole money from residents of the Jersey City community--located at 53 Duncan Ave.--intended for general property maintenance, loan repayment and other purposes. Representatives for the condominium could not immediately be reached for comment. The three men are charged with money laundering and conspiracy, according to the indictment. Gonzalez and Miranda face additional theft by deception and theft by failure to make required disposition of property received charges, according to the indictment. Assistant Prosecutor Gene Rubino would not provide additional information on the allegations against the men. The men did not immediately return calls for comment on Wednesday.
Monday, March 21, 2016
The next housing crisis is here - Yahoo Finance
The next housing crisis is here - Yahoo Finance
See my post below about new housing starts staying very low since the recession. Here's one view saying that there are few new starter homes on the market, the ones that exist are getting bought up by investors, and mortgage lenders are still picky about making loans. That's all supply side. But I think at the core of the housing market problems is one simple demand side fact: an awful lot of young people can't afford to buy starter homes. That's why developers aren't building them. Millennials are saddled with student loans, many of them are working in jobs that don't pay much so they can't save a down payment, and government is doing bupkis to address these problems. So lenders don't see them as good credit risks.
Thanks to Fred Pilot for this link.
"Following the mid-aughts housing bubble that saw homeowners across the country get themselves upside down in homes and mortgages they couldn't ever afford to repay — a crisis that was as much about too much supply as it was about too much bad financing — the market has gone the complete other direction. First-time homebuyers are crowded out, with Trulia's chief economist Ralph McLaughlin writing Monday that the number of starter homes on the market has declined 43.6% in the past four years. Homeowners who want to move from a starter home to something better can't afford the next step. McLaughlin notes that the number of "trade-up" homes on the market is also down about 40% over the same period. Meanwhile, mortgage lenders, despite record-low rates, are still reluctant to extend credit to less-than-superb borrowers. And as investors look for places to earn whatever return on capital they can muster, the low end of the housing market has almost ceased to exist as the investor class has bought up homes with the plan to flip them."
See my post below about new housing starts staying very low since the recession. Here's one view saying that there are few new starter homes on the market, the ones that exist are getting bought up by investors, and mortgage lenders are still picky about making loans. That's all supply side. But I think at the core of the housing market problems is one simple demand side fact: an awful lot of young people can't afford to buy starter homes. That's why developers aren't building them. Millennials are saddled with student loans, many of them are working in jobs that don't pay much so they can't save a down payment, and government is doing bupkis to address these problems. So lenders don't see them as good credit risks.
Thanks to Fred Pilot for this link.
"Following the mid-aughts housing bubble that saw homeowners across the country get themselves upside down in homes and mortgages they couldn't ever afford to repay — a crisis that was as much about too much supply as it was about too much bad financing — the market has gone the complete other direction. First-time homebuyers are crowded out, with Trulia's chief economist Ralph McLaughlin writing Monday that the number of starter homes on the market has declined 43.6% in the past four years. Homeowners who want to move from a starter home to something better can't afford the next step. McLaughlin notes that the number of "trade-up" homes on the market is also down about 40% over the same period. Meanwhile, mortgage lenders, despite record-low rates, are still reluctant to extend credit to less-than-superb borrowers. And as investors look for places to earn whatever return on capital they can muster, the low end of the housing market has almost ceased to exist as the investor class has bought up homes with the plan to flip them."
Housing starts never recovered from the Great Recession
This chart shows housing starts from 1960 to the present, with recessions shown as gray vertical lines. As you can see, housing starts nearly always decline just before the recession officially begins, and housing starts go up fast as the recession ends. You can see the enormous overbuilding of the 1990-2005 years. Then housing starts fell like a rock for three years before the Great Recession started. Then they stayed flat, at historically low levels, for several years after the recession ended. They have been crawling up the last few years, but still haven't reached average levels, even given that the US has a much larger population than before. The real estate development industry was transformed by the housing boom and the housing bust. Nearly all the small and medium-sized developers were wiped out, and now the industry is dominated as never before by a few giant, publicly -traded corporations. When they do residential development, they build virtually nothing except CIDs. They are national or international firms that are able to dictate terms to small suburban municipal governments, as in "take it or leave it--we do it our way or we go someplace else."
Saturday, March 19, 2016
Neighborhood gate opens up HOA troubles--Georgia - Story | WAGA
Neighborhood gate opens up HOA troubles - Story | WAGA
"The installation of a security gate opened the neighbors' eyes to just how closed off they feel they are to the management of their community. Even the HOA treasurer, the man in charge of the finances, says he no longer has a say in how the money is spent.
The treasurer says Brighton Village shelved an $80,000 gate proposal because they didn't have the money. But then after new board leadership arrived, he says, a gate was going in and the price was going up. "And we're now at $135,000," he told the Fox 5 I-Team.
Alarmed, Montgomery sent a letter warning his neighbors that "no decision was voted on by the board." Neighbors chimed in wanting to know more. "We want to see the contract. We want to see the financial," said homeowner Zakia Funchess The Fox 5 I-Team has tried to talk to board president Michael Pillow about the mounting tensions since he took the post. When I asked him, "Can we talk to you about the ill will between the board and some of the neighbors," he kept walking. "
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He seems nice. State laws need to mandate disclosure of association financial information, and most of all there needs to be an enforcement mechanism short of filing a civil suit or waiting for the next BOD election.
"The installation of a security gate opened the neighbors' eyes to just how closed off they feel they are to the management of their community. Even the HOA treasurer, the man in charge of the finances, says he no longer has a say in how the money is spent.
The treasurer says Brighton Village shelved an $80,000 gate proposal because they didn't have the money. But then after new board leadership arrived, he says, a gate was going in and the price was going up. "And we're now at $135,000," he told the Fox 5 I-Team.
Alarmed, Montgomery sent a letter warning his neighbors that "no decision was voted on by the board." Neighbors chimed in wanting to know more. "We want to see the contract. We want to see the financial," said homeowner Zakia Funchess The Fox 5 I-Team has tried to talk to board president Michael Pillow about the mounting tensions since he took the post. When I asked him, "Can we talk to you about the ill will between the board and some of the neighbors," he kept walking. "
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He seems nice. State laws need to mandate disclosure of association financial information, and most of all there needs to be an enforcement mechanism short of filing a civil suit or waiting for the next BOD election.
Disabled vet concerned HOA fees dispute will lead to foreclosure
Disabled vet concerned HOA fees dispute will lead to foreclosure
SAN ANTONIO -- A disabled Air Force veteran who lost nearly all his hearing after going through treatment to remove a tumor said he is concerned he will now lose his home over a two-year-old dispute with his homeowners association regarding back dues. "I have my problems, but I have to try to help myself," said Northington Butler, Jr., who was sued by the Westover Crossing Homeowner's Association in March 2014. Butler and the HOA entered into a settlement agreement last July that required Butler to pay $100 a month to cover more than $2,300 in back dues, interest and attorney's fees. Certified money order records provided by Butler show he has made the monthly payment each month. However, Butler said he stopped receiving invoices for his regular HOA dues. When Butler wrote the HOA's attorney about the invoices last month, he received a letter back accusing him of not fully complying with the settlement agreement because he had not signed the paperwork."
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I hope the association sees the light--the article says somebody at the management company says they don't intend to foreclose.
SAN ANTONIO -- A disabled Air Force veteran who lost nearly all his hearing after going through treatment to remove a tumor said he is concerned he will now lose his home over a two-year-old dispute with his homeowners association regarding back dues. "I have my problems, but I have to try to help myself," said Northington Butler, Jr., who was sued by the Westover Crossing Homeowner's Association in March 2014. Butler and the HOA entered into a settlement agreement last July that required Butler to pay $100 a month to cover more than $2,300 in back dues, interest and attorney's fees. Certified money order records provided by Butler show he has made the monthly payment each month. However, Butler said he stopped receiving invoices for his regular HOA dues. When Butler wrote the HOA's attorney about the invoices last month, he received a letter back accusing him of not fully complying with the settlement agreement because he had not signed the paperwork."
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I hope the association sees the light--the article says somebody at the management company says they don't intend to foreclose.
Lowcountry neighbors sue HOA, Hargray for alleged illegal kickback deal | WSAV-TV
Lowcountry neighbors sue HOA, Hargray for alleged illegal kickback deal | WSAV-TV
"Some Lowcountry neighbors are taking their cable company, Hargray, and homeowner’s association’s (HOA) officers at D.R. Horton to court. They’re suing the two companies, accusing them of an illegal kickback deal. Neighbors of the D.R. Horton-built communities claim the company acted “unjustly” in making the said agreement with Hargray to charge homeowners “unfair” prices."
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"Some Lowcountry neighbors are taking their cable company, Hargray, and homeowner’s association’s (HOA) officers at D.R. Horton to court. They’re suing the two companies, accusing them of an illegal kickback deal. Neighbors of the D.R. Horton-built communities claim the company acted “unjustly” in making the said agreement with Hargray to charge homeowners “unfair” prices."
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The privatization of political rallies | Political Insider blog
Where Georgia is ahead of the curve: The privatization of political rallies | Political Insider blog
"The incident at Burt’s Pumpkin Farm in Dawsonville was, in fact, a precursor to a new, defining feature of politics in 2016 – the privatized presidential rally. Other candidates have engaged in culling potential disruptors – whether inconvenient reporters or suspected counter-demonstrators — from their mass gatherings. Prior to Georgia’s primary earlier this month, two black college students were ejected from a Hillary Clinton rally at Atlanta City Hall by police, for scrawling “Black Lives Matter” on the back of a campaign sign. But it is the Republican campaign of Donald Trump that has carried crowd (and press) control to a new extreme. Two things you can always count on at his raucous rallies: Loud music, and the disembodied male voice that makes it clear that “this is a private event paid for by Mr. Trump.”
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Well, of course Trump uses "private property rights" to silence freedom of speech. He's a real estate developer, after all, and they figured out that game a long time ago. This is why so many CID residents get in trouble for political expression--they are on private property and under the rule of a private government, courtesy of a real estate developer and a local government that (wink wink) knew nothing, nothing.
You know what is really funny? There are some people who consider themselves homeowner activists who support Trump. How clueless is that?
"The incident at Burt’s Pumpkin Farm in Dawsonville was, in fact, a precursor to a new, defining feature of politics in 2016 – the privatized presidential rally. Other candidates have engaged in culling potential disruptors – whether inconvenient reporters or suspected counter-demonstrators — from their mass gatherings. Prior to Georgia’s primary earlier this month, two black college students were ejected from a Hillary Clinton rally at Atlanta City Hall by police, for scrawling “Black Lives Matter” on the back of a campaign sign. But it is the Republican campaign of Donald Trump that has carried crowd (and press) control to a new extreme. Two things you can always count on at his raucous rallies: Loud music, and the disembodied male voice that makes it clear that “this is a private event paid for by Mr. Trump.”
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Well, of course Trump uses "private property rights" to silence freedom of speech. He's a real estate developer, after all, and they figured out that game a long time ago. This is why so many CID residents get in trouble for political expression--they are on private property and under the rule of a private government, courtesy of a real estate developer and a local government that (wink wink) knew nothing, nothing.
You know what is really funny? There are some people who consider themselves homeowner activists who support Trump. How clueless is that?
Thursday, March 17, 2016
CAI supports federal legislation to give income tax deduction for association assessments
CAI Government Affairs Blog
"U.S. Representatives Anna G. Eshoo (D-CA) and Mike Thompson (D-CA) introduced a measure that would allow homeowners in community associations who earn $115,000 or less in annual income to deduct up to $5,000 of their association fees and assessments from their federal tax liability. Community Associations Institute (CAI) has expressed support for the bill. The federal legislation will benefit many of the more than 66 million Americans who live in homeowners associations, condominium communities, cooperatives and other planned communities."
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Stay tuned--let's see if this Democrat-sponsored bill goes anywhere in a Republican-dominated, Tea Party-crazed, House of Representatives.
Tuesday, March 15, 2016
Thoughts on micropolitics and macropolitics
When I first started writing about CIDs, I realized that there were two sets of issues I wanted to write about, and I divided them into micropolitics and macropolitics. Micropolitics means all the things that go on inside associations that are ruled by private governments, and for me the most important issues have to do with the relationship between unit owners and their BOD. Macropolitics refers to the relationship between associations and the rest of society, such as governments and developers. One important issue of macropolitics is to what extend this type of real estate development contributes to segregation--by race, income, age, and other factors.
Both these issue areas are important. Unfortunately, many people are intensely interested in issues of micropolitics, but don't care about the macropolitics issues at all. This is really too bad. It speaks to a lack of political awareness that undermines a lot of the activism people are involved with. When people trot off to the state capitol to make impassioned pleas for the rights of CID unit owners, claiming oppression at the hands of BODs and professionals, they run into legislators who may be unsympathetic. Why? Because they are thinking of these activists as over-privileged homeowners who have voluntarily isolated themselves from the rest of society in exclusive enclaves, and who now want to remake the deal they agreed to.When I tried to interest foundations in studying this subject and doing adult education, I ran into the same stereotype there.
Over the years I have done everything I could to dismantle that perception. I have written and talked about municipal mandates, adhesion contracts, lack of choice in the housing market, conscripting moderate and even low income people into condos and townhomes, and so forth. But the perception is still there.
I think if owner activists tried to link their causes with those of other interest groups that have larger concerns and broader constituencies, such as consumers, seniors, affordable housing advocates, for example, it would make their activism more effective. It would help to dispel the spoiled rich suburbanite/gated community stereotype.
I also think that people need to give more thought to association finances. This is both micro and macro politics. How can you claim to be an advocate for owner interests if your burning passion is to see associations disintegrate financially from being unable to collect overdue assessments? The owners you claim to care about are the ones who would get hurt. The issue is not whether they should be able to collect assessments from every owner. Of course they should, because the owners who pay end up carrying the burden of those who don't. And defunct associations hurt all the owners and the surrounding communities, with some level of local government left with the problems. The issues that need attention are about how and what associations should be able to collect--what practices are unfair or abusive, how should assessment levels be determined, what fees and charges should be permissible, etc.
Finally--this type of housing is not going away. It is here to stay. In fact, it has been spreading all over the world. Spending time and energy trying to abolish CID housing is unproductive and reveals a lack of understanding of why this is happening. Local governments are not going to go back to the days when they used taxing and bonding capability to build and maintain the infrastructure needed to support private residential development. They are too busy trying to find money to fill potholes and keep bridges from collapsing. Developers, state legislators, lenders, and federal bureaucrats have institutionalized CID housing and will continue to be the norm in new construction in the years to come.
Both these issue areas are important. Unfortunately, many people are intensely interested in issues of micropolitics, but don't care about the macropolitics issues at all. This is really too bad. It speaks to a lack of political awareness that undermines a lot of the activism people are involved with. When people trot off to the state capitol to make impassioned pleas for the rights of CID unit owners, claiming oppression at the hands of BODs and professionals, they run into legislators who may be unsympathetic. Why? Because they are thinking of these activists as over-privileged homeowners who have voluntarily isolated themselves from the rest of society in exclusive enclaves, and who now want to remake the deal they agreed to.When I tried to interest foundations in studying this subject and doing adult education, I ran into the same stereotype there.
Over the years I have done everything I could to dismantle that perception. I have written and talked about municipal mandates, adhesion contracts, lack of choice in the housing market, conscripting moderate and even low income people into condos and townhomes, and so forth. But the perception is still there.
I think if owner activists tried to link their causes with those of other interest groups that have larger concerns and broader constituencies, such as consumers, seniors, affordable housing advocates, for example, it would make their activism more effective. It would help to dispel the spoiled rich suburbanite/gated community stereotype.
I also think that people need to give more thought to association finances. This is both micro and macro politics. How can you claim to be an advocate for owner interests if your burning passion is to see associations disintegrate financially from being unable to collect overdue assessments? The owners you claim to care about are the ones who would get hurt. The issue is not whether they should be able to collect assessments from every owner. Of course they should, because the owners who pay end up carrying the burden of those who don't. And defunct associations hurt all the owners and the surrounding communities, with some level of local government left with the problems. The issues that need attention are about how and what associations should be able to collect--what practices are unfair or abusive, how should assessment levels be determined, what fees and charges should be permissible, etc.
Finally--this type of housing is not going away. It is here to stay. In fact, it has been spreading all over the world. Spending time and energy trying to abolish CID housing is unproductive and reveals a lack of understanding of why this is happening. Local governments are not going to go back to the days when they used taxing and bonding capability to build and maintain the infrastructure needed to support private residential development. They are too busy trying to find money to fill potholes and keep bridges from collapsing. Developers, state legislators, lenders, and federal bureaucrats have institutionalized CID housing and will continue to be the norm in new construction in the years to come.
Woman convicted of looting homeowners associations in Simi Valley, Calabasas
Woman convicted of looting homeowners associations in Simi Valley, Calabasas: "The owner of a now-defunct management company in Thousand Oaks has been convicted of systematically looting hundreds of thousands of dollars from two homeowners associations in Simi Valley and Calabasas.
Kristin Davis, 46, was found guilty this month by a Ventura County Superior Court jury of stealing from the Big Sky Homeowners Association in Simi Valley and the Oak Park Calabasas Homeowners Association, which her company managed."
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One of these, Oak Park Calabasas, was involved in numerous mega-lawsuits a few years ago arising out of insurance claims and breach of contract disputes.
Kristin Davis, 46, was found guilty this month by a Ventura County Superior Court jury of stealing from the Big Sky Homeowners Association in Simi Valley and the Oak Park Calabasas Homeowners Association, which her company managed."
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One of these, Oak Park Calabasas, was involved in numerous mega-lawsuits a few years ago arising out of insurance claims and breach of contract disputes.
Dozens of Lowcountry homeowners associations sue property manager | News, Weather, Sports, Breaking News | WCIV
Dozens of Lowcountry homeowners associations sue property manager | News, Weather, Sports, Breaking News | WCIV: "CHARLESTON, S.C. (WCIV) — "More than 50 homeowners associations from Seabrook to Summerville filed a lawsuit this week alleging that a property manager billed at least some of them for services that weren't provided.
The nearly five dozen plaintiffs filed the lawsuit Monday in Charleston County Circuit Court alleging that Marshland Communities and its owner, Karen Colie, misappropriated funds from at least some of them."
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The manager says she "made some terrible mistakes in an effort to stay afloat and it has caught up with me." The temptation to do these things has proven too great for many managers and officers, who have helped themselves to association funds in one way or another. With owners often not paying much attention, and little if any government oversight, it is easy to see why this happens to often.
The nearly five dozen plaintiffs filed the lawsuit Monday in Charleston County Circuit Court alleging that Marshland Communities and its owner, Karen Colie, misappropriated funds from at least some of them."
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The manager says she "made some terrible mistakes in an effort to stay afloat and it has caught up with me." The temptation to do these things has proven too great for many managers and officers, who have helped themselves to association funds in one way or another. With owners often not paying much attention, and little if any government oversight, it is easy to see why this happens to often.
Inside the "Disney for Adults" That Could Help Deliver Florida to Donald Trump | Mother Jones
Inside the "Disney for Adults" That Could Help Deliver Florida to Donald Trump | Mother Jones:
"The largest retirement community in the United States is home to 49 golf courses, dozens of restaurants, a college, an app, and three movie theaters spread across three counties in an area larger than Manhattan. Since the first trailers popped up in cattle country an hour north of Orlando, Florida, four decades ago, the Villages has swelled to a population of more than 114,000 people; almost all are over the age of 55, white, and drive around the community in golf carts that can be outfitted to resemble taxis, fire trucks, or tanks. Residents refer to the place as "Disney for adults." In addition to being one of the most quintessentially Florida places on Earth, the Villages is one of the most Republican places in Florida. For years its politics were dominated by H. Gary Morse, the late conservative megadonor who built the community and helped send Marco Rubio to the Senate six years ago and Mitt Romney to the nomination in 2012. On Tuesday night, voters there will go a long way toward determining who comes away with the state's 99 delegates. Rubio, who spoke to an overflow crowd at a rec center here on Sunday, is staking his political future on a strong showing. But lately, everything is turning up Trump."
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The Villages is a monster retirement community in Florida that has a number of HOAs within it, but they all operate under the ultimate power of a special district that is about as undemocratic as any jurisdiction can be. I did a paper on it last year that will be a book chapter soon. But the interesting angle in this article is that a recent straw poll indicates The Villages is overwhelmingly pro-Trump. If the general election vote in Florida is close, what happens in The Villages could tilt the election to Der Drumpenfuhrer. Why is it Trump Country? "In many respects, the villages is a kind of Donald Trump Fantasyland, a world devoid of Muslims or almost any people of color, where the golf is always free and America has always been great."
"The largest retirement community in the United States is home to 49 golf courses, dozens of restaurants, a college, an app, and three movie theaters spread across three counties in an area larger than Manhattan. Since the first trailers popped up in cattle country an hour north of Orlando, Florida, four decades ago, the Villages has swelled to a population of more than 114,000 people; almost all are over the age of 55, white, and drive around the community in golf carts that can be outfitted to resemble taxis, fire trucks, or tanks. Residents refer to the place as "Disney for adults." In addition to being one of the most quintessentially Florida places on Earth, the Villages is one of the most Republican places in Florida. For years its politics were dominated by H. Gary Morse, the late conservative megadonor who built the community and helped send Marco Rubio to the Senate six years ago and Mitt Romney to the nomination in 2012. On Tuesday night, voters there will go a long way toward determining who comes away with the state's 99 delegates. Rubio, who spoke to an overflow crowd at a rec center here on Sunday, is staking his political future on a strong showing. But lately, everything is turning up Trump."
-----------------------
The Villages is a monster retirement community in Florida that has a number of HOAs within it, but they all operate under the ultimate power of a special district that is about as undemocratic as any jurisdiction can be. I did a paper on it last year that will be a book chapter soon. But the interesting angle in this article is that a recent straw poll indicates The Villages is overwhelmingly pro-Trump. If the general election vote in Florida is close, what happens in The Villages could tilt the election to Der Drumpenfuhrer. Why is it Trump Country? "In many respects, the villages is a kind of Donald Trump Fantasyland, a world devoid of Muslims or almost any people of color, where the golf is always free and America has always been great."
Sunday, March 06, 2016
Trump Announces Rally at UIC Next Week, Thousands RSVP to Protest - University Village - DNAinfo.com Chicago
Trump Announces Rally at UIC Next Week, Thousands RSVP to Protest - University Village - DNAinfo.com Chicago
As many of you know, I have taught political science at UIC since 1994. This event is creating quite a stir around campus. There is a protest being organized on Facebook and other social media. There was also a movement to cancel the event that was immediately rejected by the Chancellor, and I agree with him. Let Trump speak at UIC, and let the protesters have their say as well.
And let me say this--when he shows up at UIC on Friday, his followers may be in for a big surprise. I wonder how much Trump's organizers knew about UIC and the surrounding area when they chose this site. UIC is in the heart of Chicago, near Greektown, Little Italy, the Latino neighborhood called Pilsen, and the African-American west side and south side. It is the most diverse university in the most diverse general area that you can imagine. UIC has over 29,000 students. As the University reported in September, 2015, "UIC’s well-known diversity continues, with a racial and ethnic makeup of its student body that is 37.7 percent white, 18.4 percent Asian, 20.8 percent Hispanic/Latino and 7.9 percent African-American. Undergraduate enrollment is 33.7 percent white, 28.2 percent Hispanic/Latino, 22.2 percent Asian, and 8.1 percent African-American." It will be interesting to see what the ratio is of protesters to supporters.
As many of you know, I have taught political science at UIC since 1994. This event is creating quite a stir around campus. There is a protest being organized on Facebook and other social media. There was also a movement to cancel the event that was immediately rejected by the Chancellor, and I agree with him. Let Trump speak at UIC, and let the protesters have their say as well.
And let me say this--when he shows up at UIC on Friday, his followers may be in for a big surprise. I wonder how much Trump's organizers knew about UIC and the surrounding area when they chose this site. UIC is in the heart of Chicago, near Greektown, Little Italy, the Latino neighborhood called Pilsen, and the African-American west side and south side. It is the most diverse university in the most diverse general area that you can imagine. UIC has over 29,000 students. As the University reported in September, 2015, "UIC’s well-known diversity continues, with a racial and ethnic makeup of its student body that is 37.7 percent white, 18.4 percent Asian, 20.8 percent Hispanic/Latino and 7.9 percent African-American. Undergraduate enrollment is 33.7 percent white, 28.2 percent Hispanic/Latino, 22.2 percent Asian, and 8.1 percent African-American." It will be interesting to see what the ratio is of protesters to supporters.
New Illinois Condominium & HOA Report Reveals 50,000 Associations - Evanston Review
New Illinois Condominium & HOA Report Reveals 50,000 Associations - Evanston Review
"The state of Illinois currently has more than 50,000 active condominium and homeowner associations containing nearly 600,000 residential units, new comprehensive research by Association Evaluation, LLC has revealed. The Community Associations Institute, a respected national organization, lists a total of 18,250 condominium and HOAs in Illinois as of 2015." Our research team was surprised to learn that thousands of condominium and HOA associations were uncounted in Illinois," said Sara Benson, president of Association Evaluation, LLC, a Chicago-based real estate data-analysis firm...Association Evaluation is marketing its condominium and HOA data to condo service providers such as attorneys, property management companies, landscapers, and remodeling and repair tradesmen including roofers, plumbers and contractors."
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CAI's estimates have been used by just about everybody because the Census Bureau can't be bothered asking questions about this, and most state and local governments are happy to just let CIDs proliferate without much oversight, even to the point of not keeping track of how many there are. Sara and her organization have a different methodology than CAI uses, and they came up with a much higher number. I don't know which is more accurate at this point, although of course I want to find out. I'm not clear on the methodology Sara's organization is using, and the Trib article doesn't explain it very well: "The data was gathered from physical reviews and Google rooftop checks of thousands of condo and HOA properties, and an analysis of the Secretary of State records." You have to be careful with Secretary of State searches because they lump all corporations and LLCs together and you have to decide which is an HOA or condo association. Often it is clear, sometimes it is not (see for yourself).
I also don't see any motivation for CAI to understate the numbers. But it does lead me to wonder--if it is true that CAI's numbers for Illinois are low, then are their numbers for other states and their national numbers also understated? For example, in their latest Statistical Review. CAI says there are 333,600 associations nationwide, with 26.7 million units of housing and 66.7 million people. Sara says that CAI's Illinois numbers are way low. CAI finds 18,250 association and Sara says there are 270% more than that. So they claim that CAI only found 36.5% of the association in the state. That is an enormous difference in estimates--if you extrapolate from the claims about Illinois, then do we have close to one million associations in this country? To be continued.
"The state of Illinois currently has more than 50,000 active condominium and homeowner associations containing nearly 600,000 residential units, new comprehensive research by Association Evaluation, LLC has revealed. The Community Associations Institute, a respected national organization, lists a total of 18,250 condominium and HOAs in Illinois as of 2015." Our research team was surprised to learn that thousands of condominium and HOA associations were uncounted in Illinois," said Sara Benson, president of Association Evaluation, LLC, a Chicago-based real estate data-analysis firm...Association Evaluation is marketing its condominium and HOA data to condo service providers such as attorneys, property management companies, landscapers, and remodeling and repair tradesmen including roofers, plumbers and contractors."
-----------------
CAI's estimates have been used by just about everybody because the Census Bureau can't be bothered asking questions about this, and most state and local governments are happy to just let CIDs proliferate without much oversight, even to the point of not keeping track of how many there are. Sara and her organization have a different methodology than CAI uses, and they came up with a much higher number. I don't know which is more accurate at this point, although of course I want to find out. I'm not clear on the methodology Sara's organization is using, and the Trib article doesn't explain it very well: "The data was gathered from physical reviews and Google rooftop checks of thousands of condo and HOA properties, and an analysis of the Secretary of State records." You have to be careful with Secretary of State searches because they lump all corporations and LLCs together and you have to decide which is an HOA or condo association. Often it is clear, sometimes it is not (see for yourself).
I also don't see any motivation for CAI to understate the numbers. But it does lead me to wonder--if it is true that CAI's numbers for Illinois are low, then are their numbers for other states and their national numbers also understated? For example, in their latest Statistical Review. CAI says there are 333,600 associations nationwide, with 26.7 million units of housing and 66.7 million people. Sara says that CAI's Illinois numbers are way low. CAI finds 18,250 association and Sara says there are 270% more than that. So they claim that CAI only found 36.5% of the association in the state. That is an enormous difference in estimates--if you extrapolate from the claims about Illinois, then do we have close to one million associations in this country? To be continued.
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