TEXAS – Jury Decides for Homeowners – $1,356,880 Awarded Homeowners; $616,678 for Attorney Fees « HOA Reform Coalition

TEXAS – Jury Decides for Homeowners – $1,356,880 Awarded Homeowners; $616,678 for Attorney Fees « HOA Reform Coalition
" Houston – Years of frustration and lawsuits finally ended Friday February 8, 2013, when a group of homeowners at The Landing Condominium in El Lago, Texas, won their case before a Harris County jury. Maintaining that the Board of Directors of the Association failed to follow the Condominium Declaration, Bylaws and the Texas Property Code after Hurricane Ike, the homeowners, led by Mary Lou Durham and Lee Ann Wheelbarger, sought and won their damages and attorney fees for the demolition of their condominiums.

Attorneys Andy Taylor, Mitchell Katine and Gregory Cagle represented the homeowners in this case."

USA v. Mariner's Cove Townhomes Association

As part of the Hurricane Katrina repairs, the federal government used eminent domain to demolish 14 townhome units, and paid "just compensation" to the unit owners. The townhome association demanded compensation for loss of assessment revenue.  The Fifth Circuit Court of Appeals ruled that no compensation is required because, "...the right to collect assessments is a real covenant that functions like a contract and...is not 'directly connected with the physical substance of the land.'"  The court notes that the majority view requires compensation for lost assessment revenue when units are taken, but then goes on to adopt the minority view.  Why?  Private covenants might unduly burden government's ability to exercise the power of eminent domain, and this intriguing language:  "Another theory is that real covenants
are akin to contracts; that no contract of private persons can make acts done in
the proper exercise of governmental powers, and not directly encroaching upon
private property, a taking; and that “contracts purporting to do this are void, as
against public policy.” United States v. Certain Lands (In re Newlin), 112 F. 622,
aff’d, 153 F. 876 (C.C.R.I. 1907)."

Judge who shoved deputy found not guilty by reason of insanity - chicagotribune.com

Judge who shoved deputy found not guilty by reason of insanity - chicagotribune.com

This is not from The Onion:
 
"Brim has been hospitalized five times since her 1994 election after going off her anti-psychotic meds, according to testimony. In 2004, firefighters removed her from a courtroom and took her to a hospital, said psychiatrist Matthew Markos. Brim was hospitalized for 20 days after her arrest last year, he said. Markos said at the time Brim was hospitalized, she was catatonic, confused, irrational and showing signs of paranoia and psychosis. Brim was re-elected to another six-year term as a judge in November. She was backed by the Cook County Democratic Party as well as the Committee for Retention of Judges in Cook County, a campaign committee funded by judges."
----------------

Yes, you read that correctly. Brim has been on the bench in Chicago since 1994, despite being psychotic.  She has been psychiatrically hospitalized five times, most recently last year, which didn't prevent her from being re-elected for another 6 years with the backing of the Cook County Democratic Party and the judges' retention committee.  Sure, we all have our stories about judges, but I invite you to top this one.

In rush to urbanize, China flattens 700 mountains

In rush to urbanize, China flattens 700 mountains:
"Despite environmental concerns about the project's feasibility and long-term impact on this arid, polluted region, a government-hired private developer is slicing the tops off 700 low-level, barren mountains and filling in the valleys to create a 10-square-mile base for "Lanzhou New City," 8 miles from Gansu's grimy capital."
------------------------
Urban planning, Chinese style.  "I am striving to win honor for Chinese people," says Yan, nicknamed "the Bulldozer."

Proposed bill would help homeowners in gated communities | PoconoRecord.com

Proposed bill would help homeowners in gated communities | PoconoRecord.com: Newly introduced Pennsylvania House Bill 319 aims to give property owners better access to the records in their associations by requiring all association records, with a few exceptions, be accessible for inspection and duplication by owners.

"With alarming frequency, people come to me with frustrations about getting access to association records," said Rep. Mike Carroll, D-118.

Carroll is a co-sponsor of the bill, which has been introduced several times before, but has never had enough traction to get to the floor for discussion.
 ------------------
It's hide the pea time again as the HOA bar gins up frivolous disputes and legal fees.  "Ain't nuttin to it," Jelly sez.  "Like shootin fish in a barrel."

Corporatism in America: IL Supreme Court grants HOA police powers to arrest and detain � HOA Constitutional Government

Corporatism in America: IL Supreme Court grants HOA police powers to arrest and detain � HOA Constitutional Government
George Staropoli's reaction to the horrendous Poris v. Lake Holiday POA case from the Illinois Supreme Court that I reported on below.  He highlights a number of quotations from the opinion and adds his comments.


"In Poris we have another instance of a state supreme court holding private contracts superior to the Constitution (See NJ supreme court opinion in Twin Rivers[iii]).  Apparently, the only thing that the Constitution has to say is an absolute “no contract interference.”  Note how the court adopted a narrow reading of the laws as it parsed and examined the precise wording of the laws, not stepping back in its alleged legal wisdom seeing only the trees and not the ugly forest. The court cleverly ignored the question of detaining non-members, and the question of public streets."


His conclusion:

"I can summarize the Illinois opinion with the simple statement by William Pitt, part of which appears on the façade of the Arizona Supreme Court building:  Unlimited power is apt to corrupt the minds of those who possess it: and this I know, my lords, that where law ends, tyranny begins!'"

Death threats for woman feeding feral cats in Mesa | azfamily.com Phoenix

Death threats for woman feeding feral cats in Mesa | azfamily.com Phoenix
So this story says that a lady who lives in an HOA is feeding the feral cats. Her HOA fines her. But then a board member, who happens to be a cat lover, forwards to her an email that was sent from another member of the HOA Board of Directors to the entire board, laying out the options for dealing with the situation:

"This lady is another looney tune character. Why would we be blessed with another one ????
How about if we informed her that we will take action in regards to her activities of feeding the feral cats on the property.
A. We will trap the cats and dispose of.
B. We could set out a poison control substance ounce for ounce of what she feeds the cats.
C. Just shoot her and put her out her misery....
Best I can think of that may or may not be legal....."
----------------------
 This is the sort of irresponsible nonsense that has come to be associated with HOAs in the public mind.  We have untrained, unsupervised volunteer directors making decisions on all sorts of important matters, with virtually no oversight. Many of these directors act as though they can say and do whatever they want, because nobody is watching. Thanks to Fred Fisher for the link.

Radio host charged in $10 million mortgage fraud

Radio host charged in $10 million mortgage fraud

"A south suburban attorney and national radio host who bills himself as the  "people's attorney" has been charged in a $10 million mortgage fraud scheme, federal officials announced today. Warren Ballentine was indicted last week by a federal grand jury for defrauding lenders by scheming with others to obtain nearly 30 bogus mortgage loans, according to the U.S. Attorney's office in Chicago."

--------------------

This sort of thing was rampant in Chicago during the housing boom years. The US Attorney claims he did this between 2004 and 2006.  These days, the scams involve many of the same old mortgage fraudsters (the ones who didn't get caught) doing "mortgage foreclosure rescue" scams. They get an up-front payment from somebody facing foreclosure and then do nothing.  

Socialist Willy Wonka - place chicago il date jan 28th temp 60 f snow none t

Socialist Willy Wonka - place chicago il date jan 28th temp 60 f snow none t
One of my students took my comments and created a new take on an internet meme.

PTO, HOA embezzler given prison time, restitution - Local News

PTO, HOA embezzler given prison time, restitution - Local News: Under the restitution portion of the sentence, she will pay $19,376.97 to the Aylor PTO, $32,315.29 to the Bass-Hoover PTO and $67,620.14 to the Georgetowne Court Homeowners Association.
-------------
Isolated incident No. 685,689.

Illinois Supreme Court sides with homeowner association police over resident - Chicago Tribune

High court sides with homeowner association police over resident - Chicago Tribune:
Last year, an appeals court found that the association could not stop and detain drivers for violating homeowners association rules. The court found that Lake Holiday could be found liable for Poris' false imprisonment claim and that the association's use of amber-colored flashing lights on its squad cars was unlawful.

But the Illinois Supreme Court on Friday reversed each of those findings, ruling that Lake Holiday was allowed to enforce its bylaws against residents and that courts "generally do not interfere with the internal affairs of a voluntary association."

"We can discern no logic in allowing a private homeowners association to construct and maintain roadways but not allowing the association to implement and enforce traffic laws on those roadways," Judge Robert Thomas wrote.
-----------
If you needed another reason to avoid homeowners' association, here you have it. Now in Illinois HOA employees dressed  like cops can pull you over with flashing lights and give you a ticket.  The line that courts "generally do not interfere with the internal affairs of a voluntary association" is horrifying in this context. I will have more on this, including a link to the opinion, later.
UPDATE:  1/27/13:  Here is the link to the opinion at the Illinois Supreme Court website.
Second Update:  1/28/13: You can watch the oral argument at this link. Just scroll down to the case of Poris v. Lake Holiday POA.

AZ looking at special taxing districts for certain HOAs � HOA Constitutional Government

AZ looking at special taxing districts for certain HOAs � HOA Constitutional Government
From George Starapoli's blog--he calls our attention to a bill that would prohibit land use approval bodies from mandating the creation HOAs, unless certain improvements are involved in the subdivision (such as a golf course, a lake, etc.). The alternative is to create a special improvement district.

Illinois bond rating sinks to worst in the nation - Chicago Sun-Times

Illinois bond rating sinks to worst in the nation - Chicago Sun-Times:
"Citing inaction on pensions, a prominent Wall Street bond-rating agency downgraded Illinois’ bond rating Friday, making the state the nation’s worst credit risk."
--------------
I love this use of the word "inaction."  What inaction?  Standard & Poors and the rest of the financial elite think the state legislature should have violated the state constitution by cutting state employee pensions.  But the real inaction occurred over the last 40 years or so.  State employees (like me) put 8% of their gross pay into the pension fund. It gets taken right off the top before we get our paychecks. The state is supposed to contribute 9.6%, but for the last four decades the state legislature has consistently and intentionally refused to do that, even though it is in fact a modest contribution when compared with other pension plans.  But, in any event, it is the deal they made, and they make us comply with it while refusing to pay their share.  Instead, the state has in essence been borrowing from the state employees pension fund to pay its bills, giving itself one "pension holiday" after another.

We, the employees, have lost not only the principal of those contributions, but all the investment income we would have realized during that time when the stock market was booming. Now the pension fund is seriously underfunded. It is a defined benefit plan, meaning that ultimately the state owes us a certain benefit payment, so the state might someday find itself having to dig very deep to pay us, which would wreak havoc with the rest of the state budget.

So, what is the solution to this problem?  New employees are already getting a reduced pension plan, which is fine because that's what they agreed to when they were hired. But what about currently retired people, and those of us who were hired long ago and haven't retired?  We are the target. According to the investment class and their party, the Republicans, and their newspaper, the Chicago Tribune, the way forward is for the state legislature to cut our pension benefits.  There are several ideas, but all of them come down to cutting the payments that are mandated by the contract.   It is an indication of just how morally bankrupt the financial sector has become that the shocking injustice of such a proposal is utterly irrelevant to them.  Moreover, it is unconstitutional.  The Illinois constitution provides as follows, at Article 13, Section 5:

"SECTION 5. PENSION AND RETIREMENT RIGHTS
    Membership in any pension or retirement system of the
State, any unit of local government or school district, or
any agency or instrumentality thereof, shall be an
enforceable contractual relationship, the benefits of which
shall not be diminished or impaired."

Any literate human can see that this provision precludes the elite-sponsored effort to cut our pensions in order to solve the problem the state created by welching on its obligations to us for the last four decades. But, having ignored the immorality of their position, ignoring its illegality is child's play.  The advocates of "pension reform," as they call it ("pension theft" would be the accurate term) think they should pass the law and let public employee unions challenge it in court, where the advocates think maybe the Illinois Supreme Court can be persuaded to ignore the state constitution and go along with it. Basically, it is the legally and morally vapid argument of a hostage taker:  the state legislature has created a financial crisis that threatens to wreck the state financially, and the only way out, they say, is to screw the employees--the only party to the contract that has always honored it. The state wants to cheat the employees out of billions of dollars, on the grounds that they have been cheating us for so long that now there is no other course open except to cheat us again. The "inaction" of the previous legislative session means only that the issue is carried forward.

As for the rating agencies, where were they all these years when the state was setting up this situation by underfunding the pension funds? Where was the ratings downgrade thirty years ago in response to "pension holidays," when forcing the state legislature to act responsibly would have prevented the current crisis?  Oh, wait, I remember.  S&P and the others were enthusiastically giving AAA ratings to residential mortgage backed securities that eventually cratered and wrecked the world's economy, contributing further to the budget crisis that faces states like Illinois.

Want to live like a king? The American castle homes you can buy | Mail Online

Want to live like a king? The American castle homes you can buy | Mail Online
I want one.

Backboard seizures put residents on defense | county, hoops, public - News - The Orange County Register

Backboard seizures put residents on defense | county, hoops, public - News - The Orange County Register: In early January, the county responded to complaints in the Wagon Wheel and Las Flores HOA communities, according to Jessica O'Hare with Public Works. They found eight hoops on county right of way and issued notices, with one hoop targeted for impound soon.

However, O'Hare said most of the county's backboard complaints come from Ladera Ranch, leading to sweeps there about once a year.

"Portable basketball backboards have always been an issue in Ladera Ranch," said Jett McCormick, chairman of the Ladera Ranch Civic Council.

The community's HOA rules prohibit backboards from being left on the street when not in use, McCormick said. But the association doesn't have jurisdiction over public streets, leaving enforcement to the county.
-------------
Apparently jurisdictional matters aren't an issue in Arizona, where George Staropoli has reported on state legislation barring HOAs from asserting parking jurisdiction over public rights of way.   Which strikes me as nonsensical since Privatopia by definition is a creature of private and not public jurisdiction.

Have you been living under a rock? Mexican family converts 131-foot stone in desert into a home | Mail Online

Have you been living under a rock? Mexican family converts 131-foot stone in desert into a home | Mail Online
Wow--Talk about a house with a view...

‘Nuclear Holocaust’ & ‘Sh!tBag’ Among Clever Names Morgan Stanley Bankers Gave To Toxic Mortgage-Backed Security – The Consumerist

‘Nuclear Holocaust’ & ‘Sh!tBag’ Among Clever Names Morgan Stanley Bankers Gave To Toxic Mortgage-Backed Security – The Consumerist

And they aren't even going to prison. Thanks to Mystery Reader for this link.

In Carrboro, working-class condo owners must pay $5,400 fee—in three weeks | Orange County | Indy Week

In Carrboro, working-class condo owners must pay $5,400 fee—in three weeks | Orange County | Indy Week: The fees are intended to generate nearly $1.8 million in funds to repair the long-crumbling apartment complex. Many tenants say previous ownership, which sold the property last summer, neglected to maintain it, leaving behind shabby apartments and dangerous walkways.

A 10-year-old boy tumbled through a deteriorated stairway at the complex on Nov. 24, three days after Collins Crossing owners notified condo owners of their plan to impose assessment fees.

Carrboro officials gave owners 90 days to make repairs. In the meantime, condo owners have to find the cash within three weeks. It's unclear what penalty tenants will face if they don't pay, although Carrboro Mayor Mark Chilton says management could impose a lien on the condos. Some residents fear foreclosure.
---------------
Looks like this condo complex has fallen into Tyler Berding's Phase 3 death spiral to the point it resembles an apartment complex with a landlord more than a condo HOA.

Would you want to live on a housing estate like this? New Chinese 'villas' look more like concrete slums | Mail Online

Would you want to live on a housing estate like this? New Chinese 'villas' look more like concrete slums | Mail Online
Well...no. But it is the logical extension of some of the more unfortunate trends in real estate development that we can see close to home.

Pruning Shears: Utopian colonies and the deep roots of the Occupy Movement

Today's CID housing is frequently marketed to tap into people's yearning for a strong sense of community. What is usually missing from the product they deliver, however, is a common sense of values. But from the late 19th century through the early 20th, many people set up their own utopian communities, some religious and some socialistic.  This blog post points out that some of these socialistic communities were similar in a number of ways to the Occupy movement.  It is in part a reaction to a book concerning authoritarian tendencies on the left.  But the larger issue is how to structure rights, control, and privacy in common living arrangements. Today's CID activists tend to be focused on how abusive current forms of CID government are, and some of them offer state law reforms to protect owners, while others demand abolition. But the greater challenge is how to structure CIDs so that they offer residents a richer social life than they would have living in an apartment or detached single family home in the stereotypical faceless suburb.  Is such a goal realistic, or just a fantasy?   

------------------------

"What is really fascinating (and surprisingly relevant) is Ellis’ coverage of utiopian communities that began to form in the late nineteenth century. Inspired in part by proto-science fiction like Edward Bellamy’s Looking Backward, these communities withdrew from the larger society in an effort to construct the one they envisioned. While the only separatist type impulses these days seem to be on the right, their governance had striking similarities to Occupy - including its weaknesses....The near-unanimous vote of the general assembly resembles the consensus model used by Occupy. As our group noted last year, a consensus model eventually works to the advantage of those with the most time. Getting 90% approval might represent the overwhelming view of the majority, but it might also might represent 90% of the handful left after an extended and frustrating filibuster."