Happy Together - The New Yorker
"The building, Kennedy’s new home, is run by the co-living startup Common, which offers what it calls “flexible, community-driven housing.” Co-living has also been billed as “dorms for grown-ups,” a description that Common resists. But the company has set out to restore a certain subset of young, urban professionals to the paradise they lost when they left college campuses—a furnished place to live, unlimited coffee and toilet paper, a sense of belonging."
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Sounds a bit like an episode of "Friends," and I can see the attraction of it. A lot of Americs are looking for a sense of community in a small, shared, living environment. Except for some seniors developments, I don't think many people find that in condominiums or HOAs.
Saturday, May 14, 2016
Friday, May 13, 2016
Legislator pushing for more oversight of homeowners associations | Local news | tucson.com
Legislator pushing for more oversight of homeowners associations | Local news | tucson.com
"Farnsworth’s bills would add regulations to the operation of HOAs. SB 1496 deals with HOA directors, stipulating that if a member of the board of directors is removed from their position, he or she cannot be reappointed to that post. It’s an issue that has been raised by homeowners. The other bill is SB 1498, which would require HOAs to provide ample warning time for homeowners before charging late fees and inform homeowners of their right to dispute the fees through a state process. HOAs would also have to maintain members’ voting records for one year. Both bills have passed the Legislature. Gov. Doug Ducey signed SB 1498 into law. The other bill has not yet been signed."
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See the post immediately below.
"Farnsworth’s bills would add regulations to the operation of HOAs. SB 1496 deals with HOA directors, stipulating that if a member of the board of directors is removed from their position, he or she cannot be reappointed to that post. It’s an issue that has been raised by homeowners. The other bill is SB 1498, which would require HOAs to provide ample warning time for homeowners before charging late fees and inform homeowners of their right to dispute the fees through a state process. HOAs would also have to maintain members’ voting records for one year. Both bills have passed the Legislature. Gov. Doug Ducey signed SB 1498 into law. The other bill has not yet been signed."
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See the post immediately below.
Former Quail Run HOA treasurer accused of grand theft - wptv.com
Former Quail Run HOA treasurer accused of grand theft - wptv.com
From Palm Beach: "A former treasurer for the Quail Run Homeowners Association has been charged with grand theft, according to the Boynton Beach Police Department. Police arrested Norman Glavas, 69, Thursday morning. Investigators say he embezzled more than $50,000 from the HOA."
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The need for transparency and oversight of HOA/condo association finances is obvious.
From Palm Beach: "A former treasurer for the Quail Run Homeowners Association has been charged with grand theft, according to the Boynton Beach Police Department. Police arrested Norman Glavas, 69, Thursday morning. Investigators say he embezzled more than $50,000 from the HOA."
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The need for transparency and oversight of HOA/condo association finances is obvious.
Thursday, May 12, 2016
HOA bans homeowners renting to sex offenders, but is it legal?
HOA bans homeowners renting to sex offenders, but is it legal?: "HOUSTON - A Fort Bend County neighborhood's homeowners association has put a ban on any homeowner renting to a registered sex offender.
Lots of families with young children live in the Kingdom Heights neighborhood. The deed restrictions established by the HOA for the quiet suburban Houston community are crystal clear -- no homeowner may lease a residence to a registered sex offender...The state's property code calls into question the HOA's deed restrictions. It was revised last year and states that HOAs can no longer be involved in the approval process of a lease agreement for prospective tenants. Essentially it says an HOA has to mind its own business."
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Once again we have an HOA attempting to do something that appears to be against the law. See below for the HOA in California that wants to violate state law concerning watering lawns in a drought.
Lots of families with young children live in the Kingdom Heights neighborhood. The deed restrictions established by the HOA for the quiet suburban Houston community are crystal clear -- no homeowner may lease a residence to a registered sex offender...The state's property code calls into question the HOA's deed restrictions. It was revised last year and states that HOAs can no longer be involved in the approval process of a lease agreement for prospective tenants. Essentially it says an HOA has to mind its own business."
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Once again we have an HOA attempting to do something that appears to be against the law. See below for the HOA in California that wants to violate state law concerning watering lawns in a drought.
Wednesday, May 11, 2016
FHFA Vows to Keep Fighting HOA Super-Priority Liens - DSNews
FHFA Vows to Keep Fighting HOA Super-Priority Liens - DSNews
"The Federal Housing Finance Agency (FHFA) has reaffirmed its support of authorized servicer reliance on the Housing and Economic Recovery Act (HERA) of 2008 in foreclosures involving homeowner associations (HOAs) and super-priority liens, saying it will “aggressively” fight any HOA that tries to extinguish a Fannie Mae or Freddie Mac lien through foreclosure.
The super-priority lien issue has been a contentious one since it came to prominence following a decision by the Nevada State Supreme Court in September 2014 that allowed HOAs to use super-priority liens to foreclose on homes with delinquent HOA dues—without the permission of the mortgagee.
The FHFA responded in December 2014 with a warning to HOAs that loans with super-priority liens attached would not push mortgages backed by Fannie Mae and Freddie Mac into the secondary position. In June 2015, a federal judge in the U.S. District Court for the District of Nevada ruled that HOAs could not foreclose non-judicially on GSE-owned mortgages using a super-priority lien.
In August 2015, FHFA stated its support of authorized servicers of GSE loans that rely on the HERA to prevent HOAs from foreclosing on loans insured by Fannie Mae and Freddie Mac. The FHFA recently reiterated its position in support of the servicers."
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It will be interesting to see if the CID industry is able to prevail over opposition from the Masters of the Universe. The banking industry and the GSEs have enormous political clout.
"The Federal Housing Finance Agency (FHFA) has reaffirmed its support of authorized servicer reliance on the Housing and Economic Recovery Act (HERA) of 2008 in foreclosures involving homeowner associations (HOAs) and super-priority liens, saying it will “aggressively” fight any HOA that tries to extinguish a Fannie Mae or Freddie Mac lien through foreclosure.
The super-priority lien issue has been a contentious one since it came to prominence following a decision by the Nevada State Supreme Court in September 2014 that allowed HOAs to use super-priority liens to foreclose on homes with delinquent HOA dues—without the permission of the mortgagee.
The FHFA responded in December 2014 with a warning to HOAs that loans with super-priority liens attached would not push mortgages backed by Fannie Mae and Freddie Mac into the secondary position. In June 2015, a federal judge in the U.S. District Court for the District of Nevada ruled that HOAs could not foreclose non-judicially on GSE-owned mortgages using a super-priority lien.
In August 2015, FHFA stated its support of authorized servicers of GSE loans that rely on the HERA to prevent HOAs from foreclosing on loans insured by Fannie Mae and Freddie Mac. The FHFA recently reiterated its position in support of the servicers."
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It will be interesting to see if the CID industry is able to prevail over opposition from the Masters of the Universe. The banking industry and the GSEs have enormous political clout.
Ducey vetoes bill that would allow developers to levy taxes on homeowners
Ducey vetoes bill that would allow developers to levy taxes on homeowners
"The governor rejected House Bill 2568, a priority of House Speaker David Gowan, citing concerns the legislation could harm taxpayers. The bill would have changed financing rules for community facilities districts, which are special taxing districts created to pay for infrastructure such as roads, sewers and water lines. Gowan, backed by a coalition of developers and investors, argued the bill would allow development to proceed more rapidly, primarily because it would have loosened some control local governments have over formation of the districts. For example, it would have mandated a district be formed upon request by landowners, and it would have given developers more control of the district's financing. Local governments pushed back, complaining the bill would minimize the oversight cities and towns provide on the tax rate needed to pay for infrastructure. Local government, controlled by elected officials, is more accountable than a board controlled by unelected developers or their designees, they said."
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These special districts are being used increasingly in Florida, Colorado, California, and other states. They give developers total control over public--not private--government entities that can issue muni bonds to pay for building infrastructure. Guess who pays back the bondholders, through property taxes? Right--the eventual home owners. And these districts are usually set up to be so undemocratic that they make HOAs look like Rousseau's peasants regulating the affairs of state under an oak tree (Jean-Jacques Rousseau, The Social Contract, Book IV, Ch. 1, if you are interested). Interestingly, most of the people who think HOAs are undemocratic and illiberal have zero to say about special districts.
"The governor rejected House Bill 2568, a priority of House Speaker David Gowan, citing concerns the legislation could harm taxpayers. The bill would have changed financing rules for community facilities districts, which are special taxing districts created to pay for infrastructure such as roads, sewers and water lines. Gowan, backed by a coalition of developers and investors, argued the bill would allow development to proceed more rapidly, primarily because it would have loosened some control local governments have over formation of the districts. For example, it would have mandated a district be formed upon request by landowners, and it would have given developers more control of the district's financing. Local governments pushed back, complaining the bill would minimize the oversight cities and towns provide on the tax rate needed to pay for infrastructure. Local government, controlled by elected officials, is more accountable than a board controlled by unelected developers or their designees, they said."
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These special districts are being used increasingly in Florida, Colorado, California, and other states. They give developers total control over public--not private--government entities that can issue muni bonds to pay for building infrastructure. Guess who pays back the bondholders, through property taxes? Right--the eventual home owners. And these districts are usually set up to be so undemocratic that they make HOAs look like Rousseau's peasants regulating the affairs of state under an oak tree (Jean-Jacques Rousseau, The Social Contract, Book IV, Ch. 1, if you are interested). Interestingly, most of the people who think HOAs are undemocratic and illiberal have zero to say about special districts.
Monday, May 09, 2016
Confessions of a Donald Trump Tabloid Scribe - POLITICO Magazine
Confessions of a Donald Trump Tabloid Scribe - POLITICO Magazine: "He wanted attention, but he could not control his pathological lying. Which made him, as story subjects go, a lot of work. Every statement he uttered required more than the usual amount of fact-checking. If Trump said, “Good morning,” you could be pretty sure it was five o’clock in the afternoon...I once received a tip that Trump and Richard Nixon had had a lengthy meeting in Trump’s office. Trump said he knew nothing about it. I ran the story, not only because I had an excellent source, but also because a Nixon aide confirmed it. Nixon, who was shopping for a condo the day he met with Trump, may have had issues with credibility in his time, but over Trump, I’d have believed him any day. Trump was such a pretender he even used to fake being his own spokesman, as I learned recently, though I never heard from the faux flack he called John Barron."
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We have never had a condo developer run for President before. Trump has learned the art of the big lie. When he is caught lying he just keeps right on blustering through. He has no sense of shame or guilt.
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We have never had a condo developer run for President before. Trump has learned the art of the big lie. When he is caught lying he just keeps right on blustering through. He has no sense of shame or guilt.
Saturday, May 07, 2016
Law meant to protect Wash. homeowners instead pushing up condo prices | KIRO-TV
Law meant to protect Wash. homeowners instead pushing up condo prices | KIRO-TV
SEATTLE —
In a housing market rife with new apartment complexes, there is an extremely short supply of condominiums being built and sold. Puget Sound developers point to substantial risk in building condos, due to the Washington Condo Act, a risk that does not exist for apartment development.
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What is this supposedly draconian law that developers are whining about?
It states a condo must be:
(a) Free from defective materials;
(b) Constructed in accordance with sound engineering and construction standards;
(c) Constructed in a workmanlike manner; and
(d) Constructed in compliance with all laws then applicable to such improvements.
Doesn't sound all that oppressive to me.
SEATTLE —
In a housing market rife with new apartment complexes, there is an extremely short supply of condominiums being built and sold. Puget Sound developers point to substantial risk in building condos, due to the Washington Condo Act, a risk that does not exist for apartment development.
--------
What is this supposedly draconian law that developers are whining about?
It states a condo must be:
(a) Free from defective materials;
(b) Constructed in accordance with sound engineering and construction standards;
(c) Constructed in a workmanlike manner; and
(d) Constructed in compliance with all laws then applicable to such improvements.
Doesn't sound all that oppressive to me.
The GOP's 24-hour meltdown - POLITICO
The GOP's 24-hour meltdown - POLITICO
The right wing thought that, at long last, this was going to be the year a virtuous "true conservative" made up for Goldwater's obliteration in 1964. Half a dozen of the candidates would have made them happy. Then all of them got personally humiliated and driven from the race by an unprincipled, narcissistic, quasi-fascist bully. The final blow: they are now expected to support him. No wonder they are...unhappy.
It will be interesting to see how far the American Mussolini's cult of personality can take him. His followers are so swept away by his empty promises to make everything "great," with "so much winning," that they have lost all capacity for critical thought.
The right wing thought that, at long last, this was going to be the year a virtuous "true conservative" made up for Goldwater's obliteration in 1964. Half a dozen of the candidates would have made them happy. Then all of them got personally humiliated and driven from the race by an unprincipled, narcissistic, quasi-fascist bully. The final blow: they are now expected to support him. No wonder they are...unhappy.
It will be interesting to see how far the American Mussolini's cult of personality can take him. His followers are so swept away by his empty promises to make everything "great," with "so much winning," that they have lost all capacity for critical thought.
Thursday, May 05, 2016
Sperlonga, Equifax to record HOA payments for credit scores | 2016-05-04 | HousingWire
Sperlonga, Equifax to record HOA payments for credit scores | 2016-05-04 | HousingWire:
"Sperlonga will use its technology to automatically extract assessment payment data and account status every month for all HOA property owners, according to a release. It will then report the account data to Equifax.
"We believe this will have a major impact on the HOA industry," Sperlonga CEO Dan Berman said. "According to the Community Association Institute, associations along with property management companies collect approximately $70 billion in assessment payments each year and CAI estimated there were at least 333,000 community associations in the U.S.""
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Nobody knows how much HOAs and condo associations collect because government has washed its hands of any responsibility for this massive privatization of services and infrastructure. But in any event, now people who fall delinquent on their HOA assessments will have a problem with their credit rating.
"Sperlonga will use its technology to automatically extract assessment payment data and account status every month for all HOA property owners, according to a release. It will then report the account data to Equifax.
"We believe this will have a major impact on the HOA industry," Sperlonga CEO Dan Berman said. "According to the Community Association Institute, associations along with property management companies collect approximately $70 billion in assessment payments each year and CAI estimated there were at least 333,000 community associations in the U.S.""
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Nobody knows how much HOAs and condo associations collect because government has washed its hands of any responsibility for this massive privatization of services and infrastructure. But in any event, now people who fall delinquent on their HOA assessments will have a problem with their credit rating.
Man admits stealing $2.5M from homeowner associations - The Washington Post
Man admits stealing $2.5M from homeowner associations - The Washington Post:
"BALTIMORE — A man who prosecutors say financed a lifestyle of nightclubbing, NBA games, manicures and limousines by stealing $2.5 million from his clients has pleaded guilty to wire fraud.
The U.S. Attorney’s Office said in a news release that 39-year-old William Francis of Elkridge entered the plea Wednesday in federal court in Baltimore.
Prosecutors say Francis owned two companies which managed HOA reserve funds, which were typically held in savings or money market accounts.
According to his plea agreement, Francis defrauded at least 51 of his company’s HOA clients by taking reserve funds.
Prosecutors say Francis spent the money on Washington Wizards games; adult entertainment venues and nightclubs; dog grooming services; a nail salon, and a limousine service.
Francis faces a maximum of 20 years in prison at sentencing Sept. 13."
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Yet another embezzlement from HOA reserve accounts. When will state legislators understand that there has to be oversight of HOA/condo finances?
Thanks to Shu for this link.
"BALTIMORE — A man who prosecutors say financed a lifestyle of nightclubbing, NBA games, manicures and limousines by stealing $2.5 million from his clients has pleaded guilty to wire fraud.
The U.S. Attorney’s Office said in a news release that 39-year-old William Francis of Elkridge entered the plea Wednesday in federal court in Baltimore.
Prosecutors say Francis owned two companies which managed HOA reserve funds, which were typically held in savings or money market accounts.
According to his plea agreement, Francis defrauded at least 51 of his company’s HOA clients by taking reserve funds.
Prosecutors say Francis spent the money on Washington Wizards games; adult entertainment venues and nightclubs; dog grooming services; a nail salon, and a limousine service.
Francis faces a maximum of 20 years in prison at sentencing Sept. 13."
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Yet another embezzlement from HOA reserve accounts. When will state legislators understand that there has to be oversight of HOA/condo finances?
Thanks to Shu for this link.
Wednesday, May 04, 2016
Bill would grant tax deduction for homeowners association assessments - Chicago Tribune
Bill would grant tax deduction for homeowners association assessments - Chicago Tribune:
"The same residents also pay local property taxes to municipal, county or state governments. But unlike other homeowners, only their local property tax levies are deductible on federal tax filings. Their community association assessments that pay for government-type services are not. Now a bipartisan group of congressional representatives thinks that's inequitable and needs to be corrected. Under a new bill known as the HOME Act (H.R. 4696), millions of people who live in communities run by associations would get the right to deduct up to $5,000 a year of assessments on federal tax filings, with some important limitations:
• Deductions would phase out if their incomes exceed $115,000 for single filers, $150,000 in the case of joint returns.
• The property would have to be their principal residence, not a vacation or rental home.
• To qualify for write-offs, the assessments would have to be "regularly occurring," mandatory levies that directly benefit taxpayers' properties and that exist solely because of their automatic membership in the homeowners association.
The bill's primary author is Rep. Anna G. Eshoo, D-Calif. Co-sponsors include Reps. Mike Thompson, D-Calif., and Barbara Comstock, R-Va.. Though the bill has little chance of moving through the House or Senate during this election year, it sends a message to the legislative committees now working on possible tax code changes for next year: Congress needs to acknowledge the role the country's community associations play in providing municipal-type services. The way to do it is to allow deductions on a capped amount of the money residents are required to pay to support community services."
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The bill has industry support. I would be surprised if this passed, because it would cost billions of dollars in lost income tax revenues, but it it interesting to see bipartisan support for the idea. Here is link to the text of the bill.
"The same residents also pay local property taxes to municipal, county or state governments. But unlike other homeowners, only their local property tax levies are deductible on federal tax filings. Their community association assessments that pay for government-type services are not. Now a bipartisan group of congressional representatives thinks that's inequitable and needs to be corrected. Under a new bill known as the HOME Act (H.R. 4696), millions of people who live in communities run by associations would get the right to deduct up to $5,000 a year of assessments on federal tax filings, with some important limitations:
• Deductions would phase out if their incomes exceed $115,000 for single filers, $150,000 in the case of joint returns.
• The property would have to be their principal residence, not a vacation or rental home.
• To qualify for write-offs, the assessments would have to be "regularly occurring," mandatory levies that directly benefit taxpayers' properties and that exist solely because of their automatic membership in the homeowners association.
The bill's primary author is Rep. Anna G. Eshoo, D-Calif. Co-sponsors include Reps. Mike Thompson, D-Calif., and Barbara Comstock, R-Va.. Though the bill has little chance of moving through the House or Senate during this election year, it sends a message to the legislative committees now working on possible tax code changes for next year: Congress needs to acknowledge the role the country's community associations play in providing municipal-type services. The way to do it is to allow deductions on a capped amount of the money residents are required to pay to support community services."
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The bill has industry support. I would be surprised if this passed, because it would cost billions of dollars in lost income tax revenues, but it it interesting to see bipartisan support for the idea. Here is link to the text of the bill.
Tuesday, May 03, 2016
Documents meant to combat fraud in condo elections raise more questions | Miami Herald
Documents meant to combat fraud in condo elections raise more questions | Miami Herald: "Representatives of Sunshine Management Services, which manages the complexes, said it implemented the new system of securing affidavits to prevent electoral fraud. The company has said residents have repeatedly complained about falsified signatures on the ballot or ballot envelopes in elections of association boards.
But an investigation by El Nuevo Herald and Univision 23 showed that the affidavit system put in place by the company has substantial irregularities."
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Indeed.
But an investigation by El Nuevo Herald and Univision 23 showed that the affidavit system put in place by the company has substantial irregularities."
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Indeed.
Monday, May 02, 2016
Hundreds protest against condo fraud in South Florida | Miami Herald
Hundreds protest against condo fraud in South Florida | Miami Herald:
"More than 250 South Florida condo residents marched Saturday through the streets of Doral to demand that authorities take steps to stop a wave of fraud hitting their neighborhoods.
With posters, flags and whistles, the group of protesters marched through downtown Doral shouting about alleged abuses by their board of directors and the private companies hired to manage the condominiums.
“We want our demands heard in Tallahassee,” said William Mendieta, one of the organizers of the march and resident of the Las Vistas condos in Doral. “We have left behind apathy and indifference to unite with other condos so that together we can make one request: Justice!”
It was the fifth public protest since an investigation by el Nuevo Herald and Univision 23 in March revealed the systematic frauds facing condos in Miami-Dade County — including at least 84 fraudulent votes in November election for the board of directors at The Beach Club condos in Fontainebleau Park, and a fraudulent bidding process in which a company won a $5.2 million contract in a competition against two front companies."
'via Blog this'
"More than 250 South Florida condo residents marched Saturday through the streets of Doral to demand that authorities take steps to stop a wave of fraud hitting their neighborhoods.
With posters, flags and whistles, the group of protesters marched through downtown Doral shouting about alleged abuses by their board of directors and the private companies hired to manage the condominiums.
“We want our demands heard in Tallahassee,” said William Mendieta, one of the organizers of the march and resident of the Las Vistas condos in Doral. “We have left behind apathy and indifference to unite with other condos so that together we can make one request: Justice!”
It was the fifth public protest since an investigation by el Nuevo Herald and Univision 23 in March revealed the systematic frauds facing condos in Miami-Dade County — including at least 84 fraudulent votes in November election for the board of directors at The Beach Club condos in Fontainebleau Park, and a fraudulent bidding process in which a company won a $5.2 million contract in a competition against two front companies."
'via Blog this'
Puerto Rico Will Default on Government Development Bank Debt - Bloomberg
Puerto Rico Will Default on Government Development Bank Debt - Bloomberg
"Puerto Rico will default on a $422 million bond payment for its Government Development Bank, escalating what is turning into the biggest crisis ever in the $3.7 trillion market that U.S. state and local entities use to access financing...A default on those constitutionally guaranteed bonds would be the first by a state-level borrower since Arkansas missed payments on its debt in 1933. That would likely trigger a restructuring of the commonwealth’s $13 billion of general obligations, which would be the largest-ever in the tax-exempt market."
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This situation has been building for a long time. Puerto Rico has $70 billion in muni bonds, they have been in the grip of a severe recession for a long time, and now they are in the process of defaulting on these bonds, piece by piece. There is an unusual problem in that Puerto Rico is a US territory, not a sovereign nation, so it can't go to the International Monetary Fund or pursue other sovereignty-related remedies. It isn't a state, either, and it can't go bankrupt. Congress passed law in 1984 saying that US territories can't use Chapter Nine, the bankruptcy provision for local governments. So Puerto is betwixt and between, as the saying goes. They can't pay and they can't discharge or reorganize the debts, so they are defaulting. The Republican-controlled, do-nothing, blame-Obama-for-everything Congress could fix this, but so far they haven't. Republican Speaker of the House Paul Ryan clearly wants to take action.
Sunday, May 01, 2016
LaHood alleges misuse of HOA funds for pool - San Antonio Express-News
LaHood alleges misuse of HOA funds for pool - San Antonio Express-News
"More than $300,000 in homeowner association funds for a swimming pool that was never built are at the center of a criminal case filed against two men with ties to the city of Windcrest.
Bexar County District Attorney Nico LaHood said Robert Colunga and Tom Pittman were indicted by a grand jury in April on the first-degree felony charges. Although a civil lawsuit is pending in the project, LaHood said he believes a criminal case also is warranted against the two men, and possibly others, the case involving plans for a pool to be built in San Antonio’s Stone Oak area."
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Texas is about as laissez-faire as any big state when it comes to regulating what goes on in HOAs. And these private associations have a lot of power over people there. Civil litigation alone doesn't get the job done. With $300K in losses, it isn't hard to see why criminal charges are being filed. The question is, how many other associations have similar problems that haven't come to light?
"More than $300,000 in homeowner association funds for a swimming pool that was never built are at the center of a criminal case filed against two men with ties to the city of Windcrest.
Bexar County District Attorney Nico LaHood said Robert Colunga and Tom Pittman were indicted by a grand jury in April on the first-degree felony charges. Although a civil lawsuit is pending in the project, LaHood said he believes a criminal case also is warranted against the two men, and possibly others, the case involving plans for a pool to be built in San Antonio’s Stone Oak area."
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Texas is about as laissez-faire as any big state when it comes to regulating what goes on in HOAs. And these private associations have a lot of power over people there. Civil litigation alone doesn't get the job done. With $300K in losses, it isn't hard to see why criminal charges are being filed. The question is, how many other associations have similar problems that haven't come to light?
New Local Law Says Parents of Bullies Must Pay Fines if They Don’t Control Their Kids | LawNewz
New Local Law Says Parents of Bullies Must Pay Fines if They Don’t Control Their Kids | LawNewz
Interesting approach. I'm always intrigued by local ordinances that experiment with unusual approaches to solving problems. There is something called "vicarious liability," where one person is held legally responsible for the conduct of another person, but I've never read about it being applied in this way. Bullying is a big problem and currently nobody pays for it except the kids who get bullied. Teachers and principals pretend they don't know it is happening, parents deny that their precious snowflake would ever bully anybody, the police pretend that crimes like assault and robbery aren't crimes if they happen in a school, and the bullies get away with it. So here is an effort to fine the parents of the bully. But is it legal to impose fines on parents for not preventing something their kid did when he was at school, supposedly under the control of school officials?
Interesting approach. I'm always intrigued by local ordinances that experiment with unusual approaches to solving problems. There is something called "vicarious liability," where one person is held legally responsible for the conduct of another person, but I've never read about it being applied in this way. Bullying is a big problem and currently nobody pays for it except the kids who get bullied. Teachers and principals pretend they don't know it is happening, parents deny that their precious snowflake would ever bully anybody, the police pretend that crimes like assault and robbery aren't crimes if they happen in a school, and the bullies get away with it. So here is an effort to fine the parents of the bully. But is it legal to impose fines on parents for not preventing something their kid did when he was at school, supposedly under the control of school officials?
Michigan Lawsuit Shows U.S. Voters May Not Technically Have the Right to Elect Their Mayors - CityLab
Michigan Lawsuit Shows U.S. Voters May Not Technically Have the Right to Elect Their Mayors - CityLab
From the State of Michigan's brief, defending the power of state-appointed emergency managers to take over running a city:
"Here, Plaintiffs are still free to vote in federal and state elections. And they offer no adequate support for the proposition that the right to vote in local elections, once extended, becomes a fundamental right as opposed to simply a right to participate on equal footing. ...Nor do Plaintiffs’ cited cases offer support for a recognized right to participate in local political processes, even where the local unit is a legislative body."
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I've posted about this case before. The State of Michigan says that as long as there are state and federal elections, the right to vote is not impaired--you have no right to vote for local government officials. If the state "extends," i.e, give you out of the goodness of their heart, that right, then it still doesn't include the right to choose the people who make the real decisions.
The implications go beyond Michigan. Extend the principle to other parts of the local government system. County boards, special districts, school boards, and the rest of the alphabet soup of local government entities. Do you have the right to choose the people who make the decisions on those bodies? Or can a governor put them in receivership?
As for HOAs, if the state can take away your power to choose the city council and the mayor, making constitutional rights arguments about HOA elections would seem like a lost cause. So this case is significant. It is in the District Court now, meaning the lowest level of federal court where trials are held. But if it goes up on appeal to the Sixth Circuit, it could become a major case on voting rights and autonomy of cities. The Center for Constitutional Rights is co-counsel, challenging the emergency manager law. You can read up on it there.
From the State of Michigan's brief, defending the power of state-appointed emergency managers to take over running a city:
"Here, Plaintiffs are still free to vote in federal and state elections. And they offer no adequate support for the proposition that the right to vote in local elections, once extended, becomes a fundamental right as opposed to simply a right to participate on equal footing. ...Nor do Plaintiffs’ cited cases offer support for a recognized right to participate in local political processes, even where the local unit is a legislative body."
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I've posted about this case before. The State of Michigan says that as long as there are state and federal elections, the right to vote is not impaired--you have no right to vote for local government officials. If the state "extends," i.e, give you out of the goodness of their heart, that right, then it still doesn't include the right to choose the people who make the real decisions.
The implications go beyond Michigan. Extend the principle to other parts of the local government system. County boards, special districts, school boards, and the rest of the alphabet soup of local government entities. Do you have the right to choose the people who make the decisions on those bodies? Or can a governor put them in receivership?
As for HOAs, if the state can take away your power to choose the city council and the mayor, making constitutional rights arguments about HOA elections would seem like a lost cause. So this case is significant. It is in the District Court now, meaning the lowest level of federal court where trials are held. But if it goes up on appeal to the Sixth Circuit, it could become a major case on voting rights and autonomy of cities. The Center for Constitutional Rights is co-counsel, challenging the emergency manager law. You can read up on it there.
Saturday, April 30, 2016
Colo. Court Case Puts Spotlight on Special Districts That Issue Munis | The Bond Buyer
Colo. Court Case Puts Spotlight on Special Districts That Issue Munis | The Bond Buyer
"A broad ruling by the Colorado Court of Appeals in a case of a developer's egregious fraud has sent lawyers to the state's General Assembly for legislation to protect existing special districts that issue tax-exempt bonds...The case involves a high-profile developer, Zachary Davidson, who used sham contracts to make him and five associates organizers or "eligible electors" who formed a special metropolitan district in Greenwood Village, Colo. that issued almost $35 million of bonds now in default. Davidson included nearby condominium purchasers in the district and obligated them to pay taxes to help pay off the bonds, even though the condo owners were unaware they were in the district or that bonds had been issued. Davidson stole millions of dollars of bond proceeds for his personal use and was eventually indicted on 20 felony counts by an Arapahoe County, Colo. grand jury. He eluded law enforcement for months and ultimately committed suicide by hanging himself from a tree in Withlacoochee State Forest in Florida at age 46. After several years of litigation, the Colorado Court of Appeals issued a ruling on April 21 favoring the condo owners' Landmark Towers Association, Inc., ruling in part that Davidson used sham contracts to give him and his associates control of the special district and the bond issue."
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Here is a link to the opinion. The court ruled, "In sum, because the TABOR election was conducted illegally —with the participation of ineligible voters and without constitutionally required notice to eligible voters — the District’s taxes to pay the bonds were levied illegally. Pursuant to TABOR’s refund provision, the District must refund all illegal taxes paid with ten percent annual simple interest. Id. at § 20(1). The Landmark buyers are also entitled to an order enjoining the District from levying any further taxes without proper voter approval."
So now the lawyers and people buying these special district muni bonds are afraid that other people will head for court to unwind the tax obligations imposed on them by these special districts. They want the Colorado state legislature to save them from more litigation. As I have written before in connection with Florida's special districts, some of these arrangements are so undemocratic and autocratic that they make HOAs look like the Golden Age of Pericles.
And the Colorado special district debacle has the potential to shift the national picture on these "dirt bond" districts: "The Treasury and IRS are now proposing rules to expand that test to add two new requirements. Under rules they proposed February, a political subdivision that can issue tax-exempt bonds, would also have to serve a governmental purpose and be governmentally controlled "with no more than an incidental private benefit. The proposed rules have met with a firestorm of criticism from muni lawyers who have warned they would threaten existing special districts and potentially millions of dollars of bonds."
Stay tuned--this sort of thing flies under the public's radar, so you never know what a state legislature will do with it.
"A broad ruling by the Colorado Court of Appeals in a case of a developer's egregious fraud has sent lawyers to the state's General Assembly for legislation to protect existing special districts that issue tax-exempt bonds...The case involves a high-profile developer, Zachary Davidson, who used sham contracts to make him and five associates organizers or "eligible electors" who formed a special metropolitan district in Greenwood Village, Colo. that issued almost $35 million of bonds now in default. Davidson included nearby condominium purchasers in the district and obligated them to pay taxes to help pay off the bonds, even though the condo owners were unaware they were in the district or that bonds had been issued. Davidson stole millions of dollars of bond proceeds for his personal use and was eventually indicted on 20 felony counts by an Arapahoe County, Colo. grand jury. He eluded law enforcement for months and ultimately committed suicide by hanging himself from a tree in Withlacoochee State Forest in Florida at age 46. After several years of litigation, the Colorado Court of Appeals issued a ruling on April 21 favoring the condo owners' Landmark Towers Association, Inc., ruling in part that Davidson used sham contracts to give him and his associates control of the special district and the bond issue."
-------------
Here is a link to the opinion. The court ruled, "In sum, because the TABOR election was conducted illegally —with the participation of ineligible voters and without constitutionally required notice to eligible voters — the District’s taxes to pay the bonds were levied illegally. Pursuant to TABOR’s refund provision, the District must refund all illegal taxes paid with ten percent annual simple interest. Id. at § 20(1). The Landmark buyers are also entitled to an order enjoining the District from levying any further taxes without proper voter approval."
So now the lawyers and people buying these special district muni bonds are afraid that other people will head for court to unwind the tax obligations imposed on them by these special districts. They want the Colorado state legislature to save them from more litigation. As I have written before in connection with Florida's special districts, some of these arrangements are so undemocratic and autocratic that they make HOAs look like the Golden Age of Pericles.
And the Colorado special district debacle has the potential to shift the national picture on these "dirt bond" districts: "The Treasury and IRS are now proposing rules to expand that test to add two new requirements. Under rules they proposed February, a political subdivision that can issue tax-exempt bonds, would also have to serve a governmental purpose and be governmentally controlled "with no more than an incidental private benefit. The proposed rules have met with a firestorm of criticism from muni lawyers who have warned they would threaten existing special districts and potentially millions of dollars of bonds."
Stay tuned--this sort of thing flies under the public's radar, so you never know what a state legislature will do with it.
Rauner turns to privatization push during second year in office - Chicago Tribune
Rauner turns to privatization push during second year in office - Chicago Tribune
Illinois Governor Bruce Rauner is a private equity billionaire with no political experience and no idea what he is doing, except that he hates the very idea of government and public employees and unions and wants to destroy all three. He used his personal wealth and his connections to other fat cats to basically buy the job. He funneled millions of his own money into a record-breaking tsunami of money and outspent Pat Quinn almost two to one. He also had the help of the Chicago Tribune, which is relentlessly anti-union and pro-big business, and the Chicago Sun-Times as well (there were some interesting financial connections there). His big idea is to turn Illinois into a Republican state. He wants to destroy the Democratic Party's political base. Destroy unions, the tort system, public employee pension systems, and the workers' compensation system. Let cities and school systems go bankrupt so they can break their contracts with unions. Enact term limits to get rid of powerful Democrats in Springfield. It's basically Scott Walker in Wisconsin without the charm.
But Democrats won big in both houses of the state legislature, and they won't commit political suicide by abandoning the people who voted for them. So how was Rauner to impose his "turnaround agenda" on the state? Simple: refuse to sign budget bills, starving social service agencies and the public education system of funds. That's what he has been doing since the day he was elected. Poor people, the disabled, the elderly, and students will suffer until the legislature turns the whole state over the Rauner and his party. Social service providers are laying people off and going out of business. Chicago State University just laid off 1/3 of it's staff. And the suffering goes on, and on, and on.
Rauner is one of these American corporate tough guys who proves how tough he is not by suffering himself, but by enjoying the suffering of the little people.
Now his big idea is to privatize every single state function that he can. There seems to be no principle behind this--no set of guidelines for which services would be better to privatize and which to keep inside government. And of course he won't work with the Democratic Party that controls the state legislature, so this is going to be done through executive action.
The risks here are obvious. People may end up paying more for less. The opportunities for corruption increase. Wages will be lowered and people will be laid off, leading to consumers having less purchasing power, which may hurt the state economy.
I wish I could find some silver lining in the so-far disastrous Rauner administration, but I can't. This man is just destroying everything he can't control, and he doesn't seem to care who gets hurt.
Illinois Governor Bruce Rauner is a private equity billionaire with no political experience and no idea what he is doing, except that he hates the very idea of government and public employees and unions and wants to destroy all three. He used his personal wealth and his connections to other fat cats to basically buy the job. He funneled millions of his own money into a record-breaking tsunami of money and outspent Pat Quinn almost two to one. He also had the help of the Chicago Tribune, which is relentlessly anti-union and pro-big business, and the Chicago Sun-Times as well (there were some interesting financial connections there). His big idea is to turn Illinois into a Republican state. He wants to destroy the Democratic Party's political base. Destroy unions, the tort system, public employee pension systems, and the workers' compensation system. Let cities and school systems go bankrupt so they can break their contracts with unions. Enact term limits to get rid of powerful Democrats in Springfield. It's basically Scott Walker in Wisconsin without the charm.
But Democrats won big in both houses of the state legislature, and they won't commit political suicide by abandoning the people who voted for them. So how was Rauner to impose his "turnaround agenda" on the state? Simple: refuse to sign budget bills, starving social service agencies and the public education system of funds. That's what he has been doing since the day he was elected. Poor people, the disabled, the elderly, and students will suffer until the legislature turns the whole state over the Rauner and his party. Social service providers are laying people off and going out of business. Chicago State University just laid off 1/3 of it's staff. And the suffering goes on, and on, and on.
Rauner is one of these American corporate tough guys who proves how tough he is not by suffering himself, but by enjoying the suffering of the little people.
Now his big idea is to privatize every single state function that he can. There seems to be no principle behind this--no set of guidelines for which services would be better to privatize and which to keep inside government. And of course he won't work with the Democratic Party that controls the state legislature, so this is going to be done through executive action.
The risks here are obvious. People may end up paying more for less. The opportunities for corruption increase. Wages will be lowered and people will be laid off, leading to consumers having less purchasing power, which may hurt the state economy.
I wish I could find some silver lining in the so-far disastrous Rauner administration, but I can't. This man is just destroying everything he can't control, and he doesn't seem to care who gets hurt.
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