Friday, November 10, 2017

The Deep Question Behind Rand Paul's 'Trivial' Dispute - Bloomberg

The Deep Question Behind Rand Paul's 'Trivial' Dispute - Bloomberg: "If Skaggs is accurately representing the senator’s views (not to mention the cause of the dispute), Paul has a highly selective idea of property rights. His get-out-of-my-face version of libertarianism doesn’t seem to respect the crucially important freedom to make, and responsibility to respect, contracts.


Your property rights don’t give you the freedom to violate your homeowners association contract specifying how to maintain your lawn any more than my free-expression rights give me the freedom to violate the Bloomberg contract saying I can’t write for The Wall Street Journal. If you can’t live with the restrictions, you don’t sign the contract. And if your neighbor isn’t sticking to the rules, you don’t go after him with your fists. You take it up with the homeowners association -- that most local version of politics."

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The problem with this argument is that in most cases HOA and condo association buyers don't "sign" any contract to join the association. They just buy the home, and membership is automatic, so these associations are mandatory-membership organizations, not voluntary associations. It is increasingly common for buyers to find that all the good options are in private communities.The law uses a legal fiction to classify them as voluntary, but in fact that isn't completely true for many people.

Rand Paul may be one of those people who believes that he has the full bundle of property rights and can do whatever he chooses. But is it because he didn't know what he was getting into?  I doubt it. Rand Paul may be one of the few people who really did know and bargain for what he got, but who wants to act as he chooses. He isn't the average person. He is very rich and well educated and powerful. He can live wherever he chooses, and he built his own house in a gated community, where everybody is restricted. So if he wants his neighbors to be restricted, but doesn't want to be restricted himself, then there is a problem.

Then there is the supreme irony that he's a libertarian. Libertarians have been raving about how great HOAs are for the last fifty years. They love the idea that there is a "private" substitute for local governments. They think private, contract-based local government is utopia. 

So, even though I don't normally find that "freedom of choice" argument very persuasive, for somebody like Rand Paul, maybe it carries more weight.

Thursday, November 09, 2017

Atlas Shrubbed - POLITICO Magazine

Atlas Shrubbed - POLITICO Magazine:

I love this. Application of the libertarian's favorite, the Coase Theorem, to Rand Paul's leaf-blowing dispute with his neighbor.

Wednesday, November 08, 2017

America’s ‘Retail Apocalypse’ Is Really Just Beginning

America’s ‘Retail Apocalypse’ Is Really Just Beginning: "The root cause is that many of these long-standing chains are overloaded with debt—often from leveraged buyouts led by private equity firms. There are billions in borrowings on the balance sheets of troubled retailers, and sustaining that load is only going to become harder—even for healthy chains. The debt coming due, along with America’s over-stored suburbs and the continued gains of online shopping, has all the makings of a disaster. The spillover will likely flow far and wide across the U.S. economy. There will be displaced low-income workers, shrinking local tax bases and investor losses on stocks, bonds and real estate. If today is considered a retail apocalypse, then what’s coming next could truly be scary."

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They are talking about big retail chains with stores in cities all over the country that may close. For example, the map that goes with this story says that 26.8% of retail loans in Pittsburgh are delinquent. A number of big chains have filed for bankruptcy, including Toys R Us, Payless Shoes, Sports Authority, Radio Shack, and Circuit City.

Rand Paul not a perfect neighbor, developer says

Rand Paul not a perfect neighbor, developer says: "While there's no official word on what caused the fight, Skaggs suggested it might have stemmed from Paul allegedly blowing lawn trimmings into his neighbor's yard. 

There have been disagreements in the past, Skaggs said, over lawn clippings or who should cut down a tree branch when it stretched over a property line. The two men live on different streets but their lots join and their homes are 269 feet apart, according to Google Maps.

Skaggs described Boucher as a "near-perfect" neighbor, but he said the libertarian politician is a different story.

Paul "was probably the hardest person to encourage to follow the (homeowner's association regulations) of anyone out here because he has a strong belief in property rights," said Skaggs, who is the former chairman of the Warren County Republican Party. 

Skaggs noted the 13 pages of regulations are extensive. But even from the start of Paul's residence in Rivergreen, Skaggs said Paul has been difficult to work with. 

"The major problem was getting the house plans approved," Skaggs said. "He wanted to actually own the property rights and build any kind of house he wanted. He didn't end up doing that, but it was a struggle." "

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There's irony for you. Libertarian writers have been waxing poetic about the virtues of homeowner associations and gated communities for decades. But here we have the most famous libertarian politician in the USA who apparently doesn't fully appreciate the nirvana of private rules that he has freely chosen, as they keep insisting. Thanks to Fred Pilot for the link.

Condo disputes can now be resolved online | Toronto Star

Condo disputes can now be resolved online | Toronto Star: "Ontario's 1.6 million condo residents have a new avenue for settling disputes in their buildings and neighbourhoods. Last week, the province launched its first online tribunal to help resolve the complaints that arise in 10,000 condo corporations.

The Condominium Authority Tribunal (CAT) provides direct access to mediators and adjudicators in a stepped process that begins with a $25 fee, although to start, it is only looking at issues related to accessing condo records."

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There are so many condo disputes that treating them like other civil matters through the judicial system is prohibitively expensive. That's why there are so many proposals to send them off into some form of alternative dispute resolution. Putting the process online is a fairly dramatic step, it seems.

Tuesday, November 07, 2017

Crime Trackers: HOA treasurer accused of stealing more than $200 - KVOA | KVOA.com | Tucson, Arizona

Crime Trackers: HOA treasurer accused of stealing more than $200 - KVOA | KVOA.com | Tucson, Arizona: "GREEN VALLEY - A trusted member of the community is accused of ripping off a home owner's association in Green Valley.

79-year-old Wendell Byram allegedly stole more than $200,000, leaving homeowners in the lurch.

In April, Byram showed up at the Pima County Sheriff's department in Green Valley, admitted to the theft and turned himself in, investigators said.

A homeowner, who wants to remain anonymous, said they are very familiar with the case. They live in the neighborhood where Byram was the treasurer for the home owner's association for the last seven years. 

“He apparently had the full trust of the board members," the neighbor said. "They never asked to look at bank statements, and he kept two sets of books.”"

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Yet another one of these. When are state governments going to accept that HOA and condo association finances must be monitored in some fashion?

Nampa homeowners share their story after ugly HOA fight | KTVB.COM

Nampa homeowners share their story after ugly HOA fight | KTVB.COM: "NAMPA - It has been the center of attention in a Nampa neighborhood for over a year, but the days of a black wrought-iron fence will soon be coming to an end.

"The lawsuit has been settled, we are selling our home, and moving to a new subdivision, the fence is coming down," said Nampa homeowner Bekah Graves.

Bekah and her husband, Eric, have spent hundreds of hours and thousands of dollars battling the Shalimar Terrace homeowners association for the right to keep their powder-coated black ornamental steel fence around their property.

"It got to the point that financially, and emotionally, we just couldn't do it anymore," said Bekah Graves."

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And that's the way it usually goes. Homeowners decide at some point that it isn't worth fighting the association.

Subdivision easily approves HOA in step toward reclaiming lakes | News-Gazette.com

Subdivision easily approves HOA in step toward reclaiming lakes | News-Gazette.com: "CHAMPAIGN — Members of a northwest Champaign subdivision voted to form a homeowners association Monday night, putting them closer to regaining ownership of two retention basins that the county auctioned off without their knowledge.

The next step in the saga, which began in May, comes with a choice — attempt to legally reverse the auction sale or buy the basins back.

A packed room of Timberline Valley South residents voted 94-11 in favor of creating an HOA. The vote comes six months after Nasty Joe's LLC bought the two large retention basins for about $1,800 in a county auction, surprising many residents who didn't know the basins' drainage taxes hadn't been paid for years."

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These tax auctions are just bizarre.

Mt. Juliet mom outraged HOA rejected request to put Little Free Library in yard | WKRN News 2

Mt. Juliet mom outraged HOA rejected request to put Little Free Library in yard | WKRN News 2: "MT. JULIET, Tenn. (WKRN) – A Mt. Juliet mother is outraged after her homeowner’s association rejected her request to put a Little Free Library in her front yard.

Six-year-old Maggie told News 2 she loves to read. She asked her mother if they could put a Little Free Library in their yard similar to one located a few miles from their Mt. Juliet home.

“I want to build a community library because I want kids to learn to love to read like me,” explained Maggie."

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The board says they "felt that it was not in keeping with the neighborhood," whatever that means.

Condo owners sue to close downtown Bay City bar | MLive.com

Condo owners sue to close downtown Bay City bar | MLive.com:

To the barricades!  The condo owners have a bar in the building and they don't like the noise. The condo association filed a lawsuit.

Monday, November 06, 2017

Was the Mysterious Attack on Rand Paul Politically Motivated? | Vanity Fair

Was the Mysterious Attack on Rand Paul Politically Motivated? | Vanity Fair:

Libertarian republican senator Rand Paul was attacked by his neighbor in the gated community where they live next door to each other.  I hope he recovers quickly, because it turns out that he suffered multiple broken ribs and a bruised lung. Paul's office says he was "blindsided" while mowing his lawn. There is also the suggestion that they have argued before. I don't think we have the whole story.

Friday, November 03, 2017

Former Albuquerque HOA President charged with embezzlement, forgery | KRQE News 13

Former Albuquerque HOA President charged with embezzlement, forgery | KRQE News 13: "Desiree Pepin, former president of the Los Colinas Homeowners Association, was arraigned on felony embezzlement and forgery charges more than three years after her neighbors took their case to Bernalillo County Sheriff’s detectives.

“It’s an excellent paper trail we have, we figured it’d be wrapped up pretty quickly, so it was extra frustrating when they kept stringing us along and not doing anything,” explained Konrad Dzula, current President of the Los Colinas HOA.

According to a civil complaint, as HOA President from 2002 to 2014, Pepin collected $30 membership dues from residents each month. Eventually, neighbors said they started receiving invoices with added fees.

“There was a pattern of this for like about six months where we would go from owing $30 to $180 and we didn’t know why,” said Matt Angel, who also lives in the subdivision...Online court records show this isn’t the first time Pepin’s been in trouble. Court records show she was convicted of forgery, fraud, and filing false insurance claims in 2003.

Court records also show Pepin was on probation, ordered to pay restitution to insurance companies during the same time she served as HOA president."

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People who didn't pay the bogus charges were threatened with liens and legal action, of course. And of course the residents who were being bilked had to move heaven and earth for three years to get a criminal case brought. 

Friday, October 27, 2017

Thursday, October 26, 2017

Infinite Suburbia | Newgeography.com

Infinite Suburbia | Newgeography.com: "Global urbanization is heading toward infinite suburbia. Around the world, the vast majority of people are moving to cities not to inhabit their centers but to suburbanize their peripheries. Thus, when the United Nations projects the number of future "urban" residents, or when researchers quantify the amount of land that will soon be "urbanized," these figures largely reflect the unprecedented suburban expansion of global cities. By 2030, an estimated nearly half a million square miles (1.2 million square kilometers) of land worldwide will become urbanized, especially in Asia, Africa, and Latin America. In the United States alone, an additional 85,000 square miles (220,000 square kilometers) of rural land will be urbanized between 2003 and 2030. Given that these figures represent the conversion of currently rural land at the urban fringe, these lands are slated to become future suburbias."

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Thanks to Fred Pilot for this link. Two comments:

First, what happened to all the predictions about the "death of suburbia"? Those predictions were largely predicated on transportation costs that were going to go sky-high when the oil ran out and gas became so expensive that the middle class couldn't afford to commute to work. But then telecommunications made it easier for more people to work from home, and fracking came along, and oil prices plummeted. Then there was the glut of suburban housing after the overbuilding that led to the crash of 2008. Now it appears that suburban living is quite popular, not only in the US, but in developing nations.

Second, will CIDs continue to predominate in the new housing that is appearing all over the world? I think so, based on a number of international conferences that I have attended. I think the trend toward privatization of local government will continue, and this means addressing some of the enduring challenges, such as paying for the maintenance and replacement of costly private infrastructure systems.

Wednesday, October 25, 2017

Here’s where you’ll live when self-driving cars rule the roads - MarketWatch

Here’s where you’ll live when self-driving cars rule the roads - MarketWatch:

Have you ever wondered what life will be like when self-driving cars are the norm?

Calverton Hills homeowners sue county over outdated sewer system | Riverhead News Review

Calverton Hills homeowners sue county over outdated sewer system | Riverhead News Review: "Mr. Hotchkin said the unit owners do not own the sewer treatment plant and therefore can’t get financing or grants to pay for a new one. Instead, homeowners claim, the county has owned the plant since the community’s original owner, Nugent Building Corp., dissolved in 1980.

According to court documents, around 2007, the county health department advised homeowners at Calverton Hills that the treatment plant was not operating according to code. Documents submitted by the county say that “the common elements of the property” were deeded to the Calverton Hills Homeowners Association in 1990.

Additionally, the county said homeowners voluntarily entered into a consent agreement in 2007 to bring the sewer treatment system into compliance, according to court papers."

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I posted something on this a few days ago. There is a dispute regarding who is responsible for the sewer system, and there is a lot at stake. The county says it is time to fix the system, but the HOA says the owners don't have $7 million and can't come up with it.

Tuesday, October 24, 2017

Bloomberg Aspen Initiative on Cities and Autonomous Vehicles

Bloomberg Aspen Initiative on Cities and Autonomous Vehicles: "As the pace of autonomous vehicle (AV) innovation picks up, cities have become the proving ground of choice. Tech giants, automakers, and startups alike are focused on cities because that is where future customers live and work.

This Atlas is the world’s first inventory of how cities around the globe are preparing for the transition to a world with AVs. As cities seek to learn from one another, they can look to this map for up-to-date information on what’s underway worldwide."

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Fascinating to see what is happening with self-driving cars around the world. This transportation revolution is happening, and it would be nice if the US could lead it, but the US national government is leaving it to cities, so probably China and the EU will be far in front.

And the same is true in other critical policy areas that relate to the future, and even the present. The US is losing its leadership role in world affairs and the global economy so fast that it is breathtaking.

Monday, October 23, 2017

Child deaths spike after DCFS privatizes 'intact family services' - Chicago Tribune

Child deaths spike after DCFS privatizes 'intact family services' - Chicago Tribune: "The mission of intact family services, which roughly 2,700 children are receiving statewide, is to offer counseling, resources and oversight to keep families together, instead of putting children through another trauma by removing them from the home and placing them with strangers.

The spike in deaths began in 2012 after DCFS completely privatized the program, putting the care of families in the hands of nonprofit groups but doing little to evaluate the quality of their work, give them guidance and resources, or hold them accountable when children were hurt or put at risk, the Tribune found."

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Unregulated privatization programs are among the worst examples of market fundamentalism run wild. This example is especially tragic.

Wednesday, October 18, 2017

Calverton homeowners sue Suffolk over sewage system demands | Newsday

Calverton homeowners sue Suffolk over sewage system demands | Newsday:

"Homeowners at a Calverton town house complex have filed a federal lawsuit against Suffolk County in a dispute over a sewage treatment system that serves the development’s homes. Leaders of the Calverton Hills Homeowners Association say the county is requiring residents to install a new wastewater plant that would cost about $7 million — far more than many residents can afford. Landlords said about half of the complex’s approximately 1,000 residents are on some form of public assistance, and some units are in foreclosure. “It’s going to be a financial hardship for a lot of families that have an income less than the median income,” said Michelle Janlewicz, who owns and rents out three units. “Most people already owe more than the property is worth.”"

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It appears that this sewer system was installed by the developer in 1973. In 2005, the country told them that the system doesn't meet discharge standards and it was the HOA's responsibility to pay for replacing it. The HOA got a $2 million estimate on replacing the sewer system, but didn't do it, and now there are additional requirements that led to today's estimate of about $7 million. The HOA has raised $500,000-$600,000, but all they did is raise the assessments by $30 per month, which is small change compared to what associations typically do when they have to specially assess for major expenditures. Now they are suing to force the county--i.e., the taxpayers of the whole country--to pay for a new sewer system for this subdivision, which I suspect is unlikely to work. The county is saying that if the HOA doesn't pay for this and get it installed, they will close the subdivision.

I have been saying forever that many associations are going to go under because they don't have enough money in reserves to pay for inevitable repair and replacement of major private infrastructure for which they are responsible. People buy into associations with no understanding of the financial risk. Eventually things wear out, and the people who happen to own the units when that happens get stuck with the bill. This is why associations are supposed to get reserve studies done. It's tragic to see these situations, but unfortunately we will be seeing a lot more as the years go by. And this is why the whole subject of private infrastructure needs to be viewed as a public policy issue.