Saturday, July 19, 2014

Subdivision’s paving woes highlight gray area in enforcement | The Courier-Tribune

Subdivision’s paving woes highlight gray area in enforcement | The Courier-Tribune: The developer owns the road up to the point where the state takes it over. The state will not take the road over, even if it is up to spec, until a certain threshold of habitation is reached — a minimum of two houses per one-tenth mile, according to Jeff Loflin, county N.C. Department of Transportation (NCDOT) engineer. So, in the interim, the developer should be motivated to keep the road up, in theory.

The reality Stauffer is experiencing what happens when the theory breaks down. It breaks down, most often, when a developer goes bankrupt or leaves a subdivision uncompleted because he or she has moved on to a more lucrative project. Short of suing the developer, the homeowners typically have few options other than taking over road maintenance themselves.

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This is the point where the intergovernmental relationship as the perfessor termed it in his seminal 1994 book Privatopia reaches a dead end. NCDOT is using a similar formula that privately owned cable companies use in determining where they will build infrastructure -- a formula that creates winners (and lots of losers), leaving many without needed infrastructure.

Friday, July 18, 2014

White House opens door to tolls on interstate highways, removing long-standing prohibition - The Washington Post

White House opens door to tolls on interstate highways, removing long-standing prohibition - The Washington Post:



"With pressure mounting to avert a transportation funding crisis this summer, the Obama administration Tuesday opened the door for states to collect tolls on interstate highways to raise revenue for roadway repairs.

The proposal, contained in a four-year, $302 billion White House transportation bill, would reverse a long-standing federal prohibition on most interstate tolling.

Though some older segments of the network — notably the Pennsylvania and New Jersey turnpikes and Interstate 95 in Maryland and Interstate 495 in Virginia — are toll roads, most of the 46,876-mile system has been toll-free."


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The Republican strategy of refusing to let Obama fix any problem, under any circumstances, pays off again. Now they are turning the interstate highways into toll roads, which should make Rand Paul happy. Now if only they can figure out how to charge us for the air we breathe...



This decision will be a huge boon to the privatization industry, which will step forward and propose a big cash payment (that will turn out to be not so big) for the right to lease the interstate highways and run them as private toll roads.

Thursday, July 17, 2014

To Water Or Not To Water? Residents Getting Mixed Messages Amid Drought --CBS Los Angeles

To Water Or Not To Water? Residents Getting Mixed Messages Amid Drought  CBS Los Angeles

The message from the state: overwater your lawn and you get fined. The message from the city of Glendora: underwater your  lawn and you get fined.  It's sort of a Goldilocks drought watering policy.

Wednesday, July 16, 2014

Income Inequality Has Spurred a Boom in Private Security | Mother Jones

Income Inequality Has Spurred a Boom in Private Security | Mother Jones:

"Perhaps this is our dystopian, Piketty-esque future: a small class of ultra-wealthy rentiers; a breakdown of public safety because the rich employ their own private security forces and don't feel like funding anything further; a retainer class of managerial drones; and then everyone else—sullen and resentful, but kept in line by the hard men in dark glasses toting automatic weapons and driving armored limos.

Actually, probably not. Eventually robots will provide better security services than fragile human beings, so the security forces will be out of jobs too."


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Actually, a lot of the private security features in CIDs are automated, such as card key gates and video cameras that are being sort-of semi-watched by some guy a hundred miles away with a hundred TV screens all around him. And a box of doughnuts.

AG sues state's largest foreclosure law firms alleging massive fraud - The Denver Post

AG sues state's largest foreclosure law firms alleging massive fraud - The Denver Post:

Is there no end to this sort of thing?



"Colorado's largest foreclosure law firms — The Castle Law Group and Aronowitz & Mecklenburg — were slapped with massive civil lawsuits Tuesday by attorney general investigators who say the lawyers operated a multi-million-dollar scheme that defrauded tens of thousands of homeowners, banks, investors and, ultimately, taxpayers.

Principals of the Aronowitz firm, which is second to Castle in the number of foreclosures handled in Colorado, immediately agreed to pay $10 million to settle the case, and will either sell or close its Denver-based law practice in the next six months, according to copies of the settlement filed in Denver district court."

Tuesday, July 15, 2014

Downtown L.A. is now driest since rain records started in 1877 - LA Times

Downtown L.A. is now driest since rain records started in 1877 - LA Times:

'Rainy seasons over the last two years were the driest in downtown Los Angeles since record-keeping began in 1877, and forecasters now say the El Nino that had been predicted to bring some relief may not materialize. According to the National Weather Service, the 2012 to 2014 rainy seasons -- which are measured every July 1 to June 30 -- only brought 11.93 inches of rainfall, which is 17.93 inches below normal.'

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Global warming is causing extreme weather patterns that could make life in many US cities quite a challenge.  Las Vegas and Phoenix come to mind, but here we see Los Angeles experiencing the effects of severe drought. Contrary to what the article says,  NOOA is still predicting El Nino, with a likelihood of 70% in the summer and 80% in the fall, although they say it will be "weak to moderate," so there may be at least some increased rainfall in California.  But the main lesson here, which everybody involved insists on learning the hard way, is that cities and real estate developers will have to get more realistic about water availability as a pivotal issue in all new residential development.  On the demand side, so will all these snowbirds who think the arid southwest is retirement Eden.  Sorry, folks. The golf courses and outdoor fountains will have to be sacrificed at some point, or eventually people will be drinking their own pee like Bear Grylls.




Monday, July 14, 2014

Don’t Like Your Neighbors’ House? Sue Them. - NYTimes.com

Don’t Like Your Neighbors’ House? Sue Them. - NYTimes.com:

The case in question involves a historic district, not an HOA, but the author goes on a bit of a tangent about HOAs:



"But lawsuits like these fly in the face of American individuality and progress, which the American dream is meant to embody. With each passing year it seems that things like homeowner associations and the various codes, covenants and restrictions they tend to follow have become ever more proscriptive and often ridiculous. People have been sued for not mowing their lawns, or for using exterior paint colors that were not on a list of approved colors."

How Corporate America Shut the Courthouse Doors to Average People | Blog | BillMoyers.com

How Corporate America Shut the Courthouse Doors to Average People | Blog | BillMoyers.com:

It seems likely to me that within the next few years all standard HOA and condo CC&Rs will contain mandatory binding arbitration provisions for all lawsuits against the developer, the association, the BOD, and the property manager. The Republican majority on the US Supreme Court is perfectly happy to endorse contractual provisions that deprive the consumer of access to the courts.



"Two recent US Supreme Court rulings — AT&T Mobility v. Concepcion and American Express v. Italian Colors Restaurant have deeply undercut these centuries-old public rights, by empowering businesses to avoid any threat of private lawsuits or class actions. The decisions culminate a thirty-year trend during which the judiciary, including initially some prominent liberal jurists, has moved to eliminate courts as a means for ordinary Americans to uphold their rights against companies. The result is a world where corporations can evade accountability and effectively skirt swaths of law, pushing their growing power over their consumers and employees past a tipping point."

Cities With the Most Abandoned Homes - 24/7 Wall St.

Cities With the Most Abandoned Homes - 24/7 Wall St.:

"In Wichita, Kansas, nearly half of homes in foreclosure were abandoned as of the first quarter of 2014. In six of the nation’s most populous metro areas, at least a third of homes in foreclosure were vacant. Based on data provided by housing data website RealtyTrac for the nation’s 100 largest metro areas, these are the cities where residents are abandoning their homes.

Median housing prices in all but one of the metro areas with the most vacant homes were among the lowest in the country. In addition, housing prices fell during the last 12 months in four of the 10 cities: Boise, St. Louis, Syracuse, and Wichita. Daren Blomquist, vice president at RealtyTrac, explained that this drop in prices creates a problem for both banks and homeowners because neither wants to hold on to a depreciating asset. This increases the likelihood that homeowners will abandon their homes and banks may find that foreclosing on the home could be more expensive than writing it off."


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21st century ghost towns?

Thursday, July 10, 2014

Real Estate Developers Want To Evict 98-Year-Old Woman To Turn Her Apartment Into Condos

Real Estate Developers Want To Evict 98-Year-Old Woman To Turn Her Apartment Into Condos

"The company is using a 1986 state law called the Ellis Act to boot Phillips from her apartment in a building at 55 Dolores Street. That property was bought in late 2012 for about $2.5 million, according to Trulia.com, marking a nearly $1.2 million profit for the previous owners who had bought it in early 2011. In April, 2013, the new owners served Phillips with an eviction notice...The man behind the company has used the Ellis Act 43 times in the past 10 years, according to the group. Ellis Act evictions fell in the wake of the financial crisis, but have been on the rise again as the economy has recovered and San Francisco property values have spiked over the past two years.  The law was intended to protect landlords who wanted to get out of the business from being forced to continue renting properties they would prefer to sell. But the majority of Ellis Act evictions in recent years have been initiatedby speculators rather than landlords, according to Steve Collier of the Tenderloin Housing Clinic. “What we’ve seen is groups of investors are banding together to buy property, usually it’s when a landlord dies and it’s sold as an estate sale, or when someone just wants to sell to retire and then the speculator buys the property [and] evicts the tenants by using the Ellis Act,” he told the local NBC News affiliate in October."
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That's just what San Francisco needs:  more overpriced condos.

Crony Capitalism Has No Place in the Supreme Court - NationalJournal.com

Crony Capitalism Has No Place in the Supreme Court - NationalJournal.com:

From Norman Ornstein, a different take on Hobby Lobby and other USSC decisions that expand the power of corporations over little people:  "But for the majority on the Roberts Court, through a series of rulings that favor corporations over labor or other interests, it is clear that corporations are king, superior to individual Americans—with all the special treatment in taxes and protection from legal liability that are unavailable to us individuals, and now all the extra benefits that come with individual citizenship. Call it the new Crony Capitalism."

Tuesday, July 08, 2014

Home equity lines due for reset may be looming financial disaster--Los Angeles Times

Home equity lines due for reset may be looming financial disaster--Los Angeles Times:

"Some mortgage and credit experts worry that billions of dollars of home equity credit lines that were extended a decade ago during the housing boom could be heading for big trouble soon, creating a new wave of defaults for banks and homeowners.  That's because these credit lines, which are second mortgages with floating rates and flexible withdrawal terms, carry mandatory "resets" requiring borrowers to begin paying both principal and interest on their balances after 10 years. During the initial 10-year draw period, only interest payments are required.  But the difference between the interest-only and reset payments on these credit lines can be substantial — $500 to $600 or more per month in some cases. If borrowers cannot afford or choose not to make the fully amortizing payments that reduce the principal debt, the bank that owns the note can demand full payment and foreclose on the house if there is sufficient equity.  According to federal financial regulators, about $30 billion in home equity lines dating to 2004 are due for resets next year, $53 billion the following year and a staggering $111 billion in 2018."

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Conventional wisdom says the foreclosure crisis is nearly over, but that doesn't take into account the second mortgages that are bumping up against their ten-year reset period.

Saturday, July 05, 2014

Sun Valley woman fighting to fly American flag - KRXI - Reno NV Top Stories - News, Sports, Weather

Sun Valley woman fighting to fly American flag - KRXI - Reno NV Top Stories - News, Sports, Weather: After living in Sun Valley for nine years, Legere's home is complete. The Sparks woman has been eyeing a change to her front yard for quite some time: an American flag for the neighborhood to enjoy.

"I called the Homeowners' Assocation and mentioned what I was planning to do, and they said, 'Oh, how exciting.'"

The tree occupying the space was uprooted and a concrete base was built. Two days ago, she invited community board members to the flag-raising ceremony and the reaction changed.

"They said, 'You have to cease and desist, you can't do that. You don't...that hasn't been OK'd by the board and it probably won't be.'"

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Another Independence Day flag(pole) flap in Privatopia, Nevada sector.

Friday, July 04, 2014

Biz executives pay fines for Florida vet facing eviction over flower pot flag | Fox News

Biz executives pay fines for Florida vet facing eviction over flower pot flag | Fox News: “When we read his story it offended our sensibilities,” Scott Carter, CEO of Lear Capital said to FoxNews.com. “The thought of him losing his home, we felt it was wrong. We wanted to help.”

Along with Lear Capital founder Kevin DeMerritt, the executives paid the $8,000 plus another $2,500 for tax adjustments.

“They [homeowner’s association were using the strongarm of money to get him to get rid of the flag,” Carter said. “They were skimming the money from his [paid] dues to pay the fines which created a lien on his house.”

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The power of media coverage is shown as another national patriotic holiday HOA flag flap unfurls and TV satellite trucks roll into Privatopia.

The Great Disinvestment - NYTimes.com

The Great Disinvestment - NYTimes.com

Paul Krugman on the craziness behind Republicans blocking highway spending: "So the highway issue should be seen as part of the larger craziness of infrastructure policy, in which spending has crashed at a time when by any reasonable criterion we should have been building much more."


Here is some context on this, from Alternet:  "The federal highway trust fund, which pays for a large part of American road construction and maintenance, is almost exhausted. Unless Congress agrees to top up the fund somehow, road work all across the country will have to be scaled back just a few weeks from now. If this were to happen, it would quickly cost us hundreds of thousands of jobs, which might derail  the employment recovery that finally seems to be gaining steam. And it would also reduce long-run economic potential."

Wednesday, July 02, 2014

Homebuyers Avoiding Chores Fuel U.S. Condo-Hotel Revival - Bloomberg


"Homebuyers Avoiding Chores Fuel U.S. Condo-Hotel Revival - Bloomberg
:

"Developers across the U.S. are reviving a concept that collapsed with the real estate crash in 2008: combining condominiums and hotels. In cities including Miami, New York and Los Angeles, a rebounding hospitality market is joining with rising demand for luxury homes, spurring developers to construct new full-service hotels and ask premium prices for residential units associated with a high-end brand."

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Many middle class home buyers don't understand what condos are all about until after they move in.  Rich people, however, generally know exactly what they are getting into, and apparently there is a renewed demand for amenities such as "...a restaurant that can provide room service, a concierge, maintenance, a person that can clean your place, valet parking,” and somebody to slowly lower a bunch of grapes into their mouths while they recline on a divan.

Florida Veteran May Lose Home Over Displayed American Flag, Fined $8,000

Florida Veteran May Lose Home Over Displayed American Flag, Fined $8,000Veteran May Lose Home Over American Flag Displaying

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There's the offending flag stuck in the flower pot in the latest national HOA flag flap that was literally a federal case until it was removed to the Florida courts. Pettiness seems to know no bounds in Privatopia.

Tempers Flare at Annexation Open House - The Missourian: Washington

Tempers Flare at Annexation Open House - The Missourian: Washington:

"A meeting Wednesday between Meadowlake Farm subdivision residents and city staff to discuss annexation became contentious.
Accusations of lying and intimidation were thrown around and one meeting attendee walked out before City Administrator Jim Briggs finished answering a question...Things got heated nearly 10 minutes into the meeting when Meadowlake resident Dale Volmert called Briggs a “lying son of a buck.” 
The comment came after Briggs said some Meadowlake residents 20 years ago requested annexation. Briggs said a mention of a petition appeared in a historical article recently in The Missourian."

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Local disputes over annexation can be intense.

Monday, June 30, 2014

Absurd Neighbor Dispute Becomes Front-Page News -- NYMag

Absurd Neighbor Dispute Becomes Front-Page News -- NYMag: According to one neighbor — who was granted anonymity “because she is worried about federal-government reprisals” — “we have this group, overweight, wearing the most ridiculous blue uniforms with the most ridiculous blue caps, and they have guns that are visible.” Meanwhile, their vehicles idle for “approximately 22 minutes daily,” according to an official complaint, and then pull out “speedily … all the while spilling fluid onto the street, which has now left a permanent stain,” against the neighborhood’s explicit “no car fluid stain” rule (seriously).
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Federal Reserve Bank Chair Janet Yellen's security detail gets crosswise with the chief's HOA.

Friday, June 27, 2014

Florida vet says 'Bring it on,' as he faces eviction over flower pot flag | Fox News

Florida vet says 'Bring it on,' as he faces eviction over flower pot flag | Fox News: A Florida veteran who isfacing foreclosure for insisting on displaying a small American flag in a flower pot on his front stoop is telling his homeowner's association to "bring it on."

“The flag is worth fighting for,” 73-year-old Larry Murphree, of Jacksonville, told FoxNews.com Friday. “If they want to foreclose, bring it on. I’m getting calls from all over the county to stand up. That’s what I'm going to do.”

Murphree's homeowners association at Tides Condominium at Sweetwater began hitting him with fines of $100 a day last year for violating his homeowners association’s flag display rules. But instead of paying the fines, Murphree let them pile up - and kept his flag on display. Now he owes more than $8,000, and neither side will budge.

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The latest dispatch in this HOA national flag flap sending TV satellite trucks to Privatopia, Florida sector.