Evan McKenzie on the rise of private urban governance and the law of homeowner and condominium associations. Contact me at ecmlaw@gmail.com
Monday, May 16, 2011
Property owner battles HOA in courts of law, public opinion
OMAHA, Neb. (AP) -- Timothy Adams isn't backing down.
The Omaha resident has turned a dispute with his neighborhood association into a public battle, putting up billboards, launching a website and taking to social media to publicize a lawsuit filed against him over the installation of solar panels on the roof of his home near Lake Zorinsky.
"It's not about money," said Adams, 49. "It's about sticking up for principles. If it's about spending tens of thousands of dollars educating people, I will do it."
Sunday, May 15, 2011
Ron Paul: I Would Not Have Voted For The 1964 Civil Rights Act (VIDEO) | TPMDC
"Just about a year after his son Rand Paul stepped in it when he told Rachel Maddow he was opposed to provisions of the 1964 Civil Rights Act, Rep. Ron Paul (R-TX) told Chris Matthews Friday he wouldn't have voted for the law in the first place had he been in Congress at the time."
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These father and son cranks are great examples the libertarian movement. Libertarians dress, walk, and talk like normal people so people don't realize how outlandish their ideas are. Rand and Ron look like plain old folks, but if they dressed to suit their ideas they'd be wearing purple velvet leisure suits and propeller beanies.
A pattern of HUD projects stalled or abandoned - The Washington Post
"The federal government’s largest housing construction program for the poor has squandered hundreds of millions of dollars on stalled or abandoned projects and routinely failed to crack down on derelict developers or the local housing agencies that funded them.
Nationwide, nearly 700 projects awarded $400 million have been idling for years, a Washington Post investigation found. Some have languished for a decade or longer even as much of the country struggles with record-high foreclosures and a dramatic loss of affordable housing."
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Federal housing policy has been one disaster after another since the 1960s.
Saturday, May 14, 2011
Thinking about rights and liberties
People with legal educations generally don't think about rights and liberties this way, because it doesn't work very well in practice. Rights and liberties frequently come into conflict with each other. If they are all absolute, there is no way to decide which one trumps the other. The Founders didn't give us a priority list to decide whether freedom of speech trumps private property. And using the Founders intent as a guide has been so thoroughly discredited as an impossible way to do things that nobody with any legal experience even tries. What did the founders intend about regulation of the internet, or genetic engineering, or nuclear energy? Nothing. That's why right wing judges like Scalia speak of original meaning, not original intent. They look at the text of the constitution and of legislation and try to figure out what they call the original meaning, not the intent, as expressed by the people who wrote it. There is too much compromise, logrolling, and ambiguity to ever discern a single "intent" among all the people who wrote something or voted for it. I don't find that particularly satisfactory either, in most cases, but it is a whole lot more sensible than the hopeless search for the unicorn of original intent.
But my main point is this: making decisions involving conflicting rights and liberties, and powers and duties, is hard and conflictual, and even the professionals disagree about how to do it. HOA and condo association governance puts individuals in charge of administering mini-governments where conflicts of rights and obligations occur all the time, often involving very complicated issues that implicate not only the association's governing documents, but state laws and even constitutional rights. Unfortunately, right now little attention is paid to educating people in how to make these decisions. To the extent that is done at all, it is usually done by lawyers and managers who are working for the BOD (or hoping to, using one of their "free educational seminars" that are actually fishing expeditions for clients). These folks tend to offer self-serving interpretations, such as the "obey the board" perspective. Why? Because they become the Board's lawyer or manager, and don't represent the individuals.
I hate to dump more responsibilities on governments, but who else will do it? In an article that I have coming out soon in Public Administration Review, I ask whether maybe public administration professionals and educators should be doing this. Maybe it's a pipe dream, but it is worth a thought.
Privatized mail delivery in the Netherlands
"Every week Dutch households and businesses are visited by postmen and postwomen from four different companies. There are the ‘orange’ postmen of the privatised Dutch mail company, trading as TNT Post but about to change their name to PostNL; the ‘blue’ postmen of Sandd, a private Dutch firm; the ‘yellow’ postmen of Selekt, owned by Deutsche Post/DHL; and the ‘half-orange’ postmen of Netwerk VSP, set up by TNT to compete cannibalistically against itself by using casual labour that is cheaper than its own (unionised) workforce. TNT delivers six days a week, Sandd and Selekt two, and VSP one. From the point of view of an ardent free-marketeer, this sounds like healthy competition. Curiously, however, none of the competitors is prospering."
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Privatized postal delivery in the Netherlands, with the competition the libertarians and other free-marketers extol, and yet it isn't all the theory promises.
Texas Legislature Online - 82(R) History for SB 142
Here is a request to get the word out that this bill is out of committee and headed for floor vote in the Texas House of Reps:
Please support SB142
Senate Bill 142 will be heard on the House floor on Thursday. Rep. Solomons has amended this bill, those amendments will help homeowners tremendously. The Industry is in a panic, if 142 passes, they will have to start playing NICER and attorneys that represent homeowners will have an equal opportunity to receive their fees. We need to protect the good things in this bill, priority of payments, payment plan, equal OPPORTUNITY TO RECEIVE ATTORNEY FEES, restrictions on resale certificates (no more surprises at closing), and the right to have solar power. Yes, there are still some problems, but this is the first bill in ten years that would give much needed help to homeowners and the attorneys that represent them. We must protect the integrity of this legislation!! This Industry consists of developers, builders, HOA attorneys and management companies...they will fight to kill this bill and keep their lucrative cash flow. We need your voice more than ever before.
HOA Reform can charter a bus for 40-50 people, or we will help set up carpools ...please let me know. For those that won't be able to attend, we will be sending form letters with phone numbers and e-mail addresses, for you to send, and your voice will be heard.
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I am not sure which Texas HOA reform group sent me this message, so here are links to both:
Texas Homeowners for HOA Reform
HOA Reform Coalition
There were a bunch of HOA/condo bills in the TX leg this session. In addition to SB 142, they include: HB 1639, 2761, 2779, 2869, 3347, 3348, and SB 472.
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Update 5/15/11: I received this info:
A message from Janet Ahmad:
Important Bill To Be Heard – Your Help Is Needed At The Texas Capitol
The Texas Legislative session is quickly coming to an end. The Committee hearings agendas have been filled with over 60 HOA Reform proposed legislative bills. Many of us have attended and testified in Business and Industry every Monday and Intergovernmental Relation (IGR) every Wednesday.
This week a very special bill will be considered on the House floor and we need your help. We need your help to personally pass out important information to both Senators and Representative asking them to vote for CSSB 142, a substitute HOA Reform bill sponsored by House Representative Burt Solomons.
We realize some of you can not make it to the Capitol so we are asking for you to join by sending e-mails to lawmaker and making phone calls to their offices. Your help is so important. Go to http://hoareformcoalition.org/ to learn more about CSSB 142 and other bills.
Our civil and constitutional rights are being eroded by an industry that for too long has blocked consumer’s access to the courts for any and all responsibility; foreclosed on homesteads from families non-judicially, despite our constitutional protections of homesteads. For the past decade homebuilders and developers have crafted self-serving Covenants, Conditions and Restrictions (CC&Rs) and its business of lucrative HOA management with the intent to impose astonishing controls, fees and divisive methods to prohibit residents from electing their own board members, airing legitimate concerns about defective drainage and shoddy home construction practices within communities. In collaboration with their management companies and their affiliate attorneys, builders are empowered in ways unimagined, such as implementing NON-Judicial foreclosures in as little as 28 day, without any formal notice to the homeowner. It’s frightening how the powers of HOAs have grown out of control.
In as week and a half the 2011 Legislative Session will end, so please join us this Wednesday, May 18, 2011 at the Capitol to make history.
IT'S TIME FOR CHANGE! Join the Coalition on the steps of the Capitol in Austin. Please try to arrive at 10:00 AM so that we may gather for instructions and materials. Handouts will be available for homeowners to take to their legislators listing legislative changes needed. Please respond as soon as possible. Let us know that we can count on you.
For those of you who can not attend please pledge to make calls and send e-mail messages. More instructions and Senator and Representative contact information to follow soon.
In the meantime find your legislators at "Who Represents Me?" on: http://www.legis.state.tx.us/ and contact them asking them to Support CSSB 142.
Tens of thousands of homeowners have suffered non-judicial and judicial foreclosure filings, exorbitant fines, fees and other harassments for frivolous and capricious citations. We need you help.
Be sure and read the latest news updates:
Help us to help you by keeping in touch. Tell your story through HOBB, and to your elected officials. Please post your comments on the many news reports below.
Thank you,
Janet Ahmad, President
Home Owners for Better Building
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Court: No right to resist illegal cop entry into home
In a 3-2 decision, Justice Steven David writing for the court said if a police officer wants to enter a home for any reason or no reason at all, a homeowner cannot do anything to block the officer's entry."
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Wow. So much for your home being your castle. Thanks to Jeff Hammond for the link.
Wednesday, May 11, 2011
Want More “Neighborly Love”? In An HOA?
Are those members on the David Berman Blog who play “whack a mole” against so-called “malcontent” members believing they are ADDING to the chances of harmony in Sun City Anthem? Why would an “adult” homeowner posting on that site believe that hateful attacks and ordering fellow homeowners to “shut up or move” could produce any positive effects?
Unfortunately, “neighborly love” is rapidly being lost in Sun City Anthem due to increasingly dictatorial board behavior and mismanagement. The trend shows the problem is getting worse and the “malcontent” members are striking back through public media channels because SCA boards are doing nothing to resolve disputes.
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The commandment to love thy neighbor as oneself is being sacrificed on the altar of the golden calf of Privatopia.
Last year's bottom of housing market "just branches on the way down."
Locally, the Sacramento Association of Realtors this week released April home sales figures for Sacramento County and West Sacramento.
The area saw the median resale price for a single-family home drop to $169,900 in April – down 8.2 percent from April 2010. It was the ninth straight month without a year-over-year increase.
The April median was slightly higher than the March figure of $166,000 – the lowest monthly median sale price since March 2001.
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Residential real estate deflation continues as the air keeps escaping the Big Bubble of the 2000s.
The Chicago Reporter Despair over disrepair
"In 2008, the city devised a way to keep neighborhoods from turning into junkyards as the nation’s foreclosure crisis roared on. The city passed an ordinance forcing owners of vacant properties—mostly financial institutions—to register them with the city. That way, the city could inspect the properties to make sure they weren’t falling into disrepair.
But an analysis by The Chicago Reporter found that many financial institutions aren’t registering the properties."
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Is anybody surprised? The banksters engaged in utterly irresponsible lending practices that encouraged millions of Americans to take insane risks that led to foreclosure and bankruptcy, then they created bizarre and horribly risky derivative investments that amounted to institutional suicide. When the industry went under in 2008, we, the taxpayers, bailed them out with our money. Now they have all this money and refuse to lend it to people. They are creating slums by letting their foreclosed properties deteriorate, refusing to pay HOA and condo assessments and property taxes, and generally behaving like corporate sociopaths.
And where is Congress in all this?
Tuesday, May 10, 2011
How Lightning fan outwitted petty HOA over playoff sign - Puck Daddy - NHL Blog - Yahoo! Sports
This is creative and funny. Thanks to Jason Zubia for the link.
On the Commons with yours truly
Monday, May 09, 2011
Can’t We Dump Some of Our 3300 Special Districts? | California Progress Report
"Even if Gov. Jerry Brown doesn’t succeed in shutting down California’s redevelopment agencies, hardly a sure thing, he might usefully turn his attention to the state’s costly tangle of special districts.
There are some 3300 of them, depending on who’s counting -- fire districts, park districts, community services districts, mosquito abatement districts, water districts, transit districts, sanitation districts, cemetery districts, etc. Don’t tell me we really need them all.
Despite the huge sums they spend, the essential services many provide, and the big piles of cash they sit on, most of them are nearly invisible to the media and the voters, except in cases of scandal."
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Thanks to Fred Pilot for this link to a commentary piece on the proliferation of special districts. We have decentralized the taxing power to the point where we are getting nibbled to death by ducks.
News from The Associated Press
The company said it lost $8.7 billion in the first three months of the year. Those losses led Fannie to request more than three times the federal aid it sought in the previous quarter. The total cost of rescuing the government-controlled mortgage buyer is nearing $100 billion - the most expensive bailout of a single company."
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These continued losses are driving the plan to privatize Fannie and Freddie. What will happen to the mortgage market if Congress follows through with that plan? I think home ownership rates will go down, never to go back up again.
Sunday, May 08, 2011
Proposed HOA foreclosure reforms stall in North Carolina
Half dozen Arizona bills limiting HOA powers become law
They can no longer ban political and real-estate signs, flagpoles or parking on public streets, according to six bills signed into law by Gov. Jan Brewer. And association boards can't restrict political activity in public areas, force residents to buy "approved" signs, ban the "tea party's" Gadsden flags or charge more than $400 in HOA "transfer" fees on a home sale.
Real estate downturn produces rental income for HOAs
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Apparently there's a silver lining in the real estate crash for HOAs. While they hold junior title under mortgagees, in the meantime HOAs can milk properties they seize in foreclosure for rental income until the mortgage lender takes back the property.
Saturday, May 07, 2011
Signs of the times: HOA threatens to sue over unsanctioned sign
Beyond Foreclosuregate - It Gets Uglier | Truthout
"The ForeclosureGate scandal poses a threat to Wall Street, the big banks, and the political establishment. If the public ever gets a complete picture of the personal, financial, and legal assault on citizens at their most vulnerable, the outrage will be endless."
Osama bin Laden hideout 'worth far less than US claimed' | World news | guardian.co.uk
So Bin Laden is underwater in more ways than one.
Friday, May 06, 2011
California’s Secret Government: Redevelopment agencies blight the Golden State.
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And Gov. Jerry Brown wants to eliminate all 400 of them as part of saving California from becoming Greece. Good for him.
Thursday, May 05, 2011
What?! Prince in foreclosure?!
The Carver County Sheriff's Office reports that the multitalented, multiplatinum Rock and Roll Hall of Famer has fallen behind $368,382 on the mortgage to his 20-acre former manse in Chanhassen, the Minneapolis suburb that he's called home since 1980. A sheriff's auction is set for May 13.
UI Press | Beyond Privatopia: Rethinking Residential Private Government
This book is now available for order directly from the publisher by using this link. It's also listed on Amazon, but they probably won't have more than a few on hand, so if you want it quickly go to Urban Institute Press by clicking the title of this post.
Sunday, May 01, 2011
The Snow Crashing of America
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Snowcrash is a great novel. And maybe it will turn out to be prophetic.
Saturday, April 30, 2011
The Big Thirst: Nothing’s Quite So Thirsty As A Las Vegas Golf Course | Fast Company
It is illegal to let your sprinkler spray water on a sidewalk or street, and Las Vegas specifies the kind of hose nozzle you can use to wash your car (trigger style, so it doesn't simply pour water out when you're not using it)."
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But, as the article says, "A single, 18-hole round of golf at a typical Las Vegas golf course requires 2,507 gallons of water." Golf courses in the desert: monuments to the arrogance and stupidity of an empire in decline?
Third Time's the Charm? Right to Rent Reintroduced in Congress
Friday, April 29, 2011
SWAT team evicts granny from her house because bank refuses to take payments after her husband's death
If a bank forecloses on a mortgage, why can't the former owner stay on as a tenant and pay market rate rent if they want to, instead of being evicted? What is the point of kicking somebody out of the home and leaving it vacant? Many, probably most, people would gladly stay in their home as a renter. The bank would be getting income, the property would be maintained, there would be no disruption to the neighborhood, and the bank would own the property and could sell it to whoever they chose. If the former owner, now a renter, didn't pay the rent they could evict him like any other tenant.
Why don't banks do that instead of whining about how much vacant REO they have on their books? And why don't we have a federal law requiring them to accept that arrangement if the owner is willing and able to pay monthly rent, even if they can't pay the arrears, penalties, property tax, etc.?
Thursday, April 28, 2011
Judge doubtful of Righthaven’s right to sue over R-J material - VEGAS INC
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Good.
Wednesday, April 27, 2011
Supreme Court Arbitration Ruling: Courts for the Wealthy and Wall Street
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You can read the opinion in AT&T Mobility v. Concepcion by following this link to SCOTUSBLOG.
Here's what happened and why it matters. The Concepcions were entitled to "free" cell phones under their contract. Then AT&T charged them thirty bucks for "sales tax." They joined a class action with others who got shafted the same way. Everybody's claim was too small to litigate alone, but together they had something worth a lawyer's time.
But their contract contained a clause saying disputes had to go to arbitration, and could not be joined with a class action.
Under California case law that term in the contract was unenforceable because it is unconscionable. The Discover Bank case, decided by the California Supreme Court, held that such class action waivers contained in adhesion contacts are unenforceable.
AT&T argued that the Discover Bank ruling was pre-empted by the Federal Arbitration Act, which provides that arbitration agreements are "valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract." The conservative voting bloc of the US Supreme Court (Scalia, Roberts, Alito, Thomas, and Kennedy) agreed with the big corporation and screwed the little consumer (what a surprise!)
Why does this matter? I expect to see such arbitration clauses and class action waivers in every single contract we get in our hands, from now on. The Supreme Court just gave corporate America a way to slam the door to the courthouse in our faces. No lawyer will litigate a thirty dollar case against a giant corporation. Now orporations can strip us of our class action rights just by inserting a term in a non-negotiable adhesion contract.
Will this include condominium or HOA declarations? I am sure it will be tried.
Affluent Kings Point Plans Extensive Surveillance Network: License Readers, 44 Cameras To See Who Comes And Goes
“It will alert us to suspended registrations, felonies, stolen cars, order of protection, sex offenders, things like that,” Kings Point Police Commissioner Jack Miller said.
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Things like that. Sure. Whatever. And this is a municipality.
Friday, April 22, 2011
Municipal M&A: Budget Woes May Force Cities Like Detroit, Hamtramck To Combine
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Libel per se
1. Accusing somebody of committing a crime.
2. Claiming they have an infections, contagious, or "loathsome" disease.
3. Injuring the person in his or her profession, trade or business, by saying they are unqualified to practice, or otherwise saying things that would tend to hurt their profits (this is called "trade libel").
4. Accusing somebody of being of an "unchaste" character.
I haven't had to delete any accusations about disease or lack of chastity yet, but I get many comments that accuse particular people of crime and that are intended to besmirch their professional reputations by calling them unethical or something similar. I delete these comments, of course, because I don't want to expose myself to the risk of a libel suit for publishing them. In nearly every case, the person who wants me to post their comments is anonymous. They want to make their libelous statements, have me publish them, and remain safely concealed behind a veil of anonymity. No, thanks.
Wednesday, April 20, 2011
Lee Farkas Convicted In $3 Billion Mortgage Fraud Case
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And on it goes. Large institutions just screwing the middle class. The banksters, the mortgage companies, the oil companies, the insurance companies, the lawyers...and it seems that neither political party has much interest in doing anything about it. In the meantime, the public gets angrier by the day. The 2012 election outcome will favor whichever party is best able to channel this incoherent, unfocused rage. The Republicans will try to blame government and the Democrats will try to blame corporate America. The problem with that choice? Both parties are right.
Monday, April 18, 2011
Attorneys say new evidence shows fraud by Righthaven
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You may recall that the Las Vegas Review Journal set up an arrangement with the copyright trolls at Righthaven to sue bloggers for quoting or reproducing LVRJ articles. Righthaven claimed to have been assigned the copyright to the articles in question and filed 264 lawsuits without warning. Now some of the defendants claim that Righthaven doesn't really own the copyrights after all, and that the assignment was "a transparent sham."
Sunday, April 17, 2011
Texas homeowners call for state AG investigation of community association industry
Home Owners for Better Building will be asking the House Business and Industry committee as well as other lawmakers to request Attorney General Greg Abbott to investigate Home Owners Associations (HOA’s), the property management industry and its attorneys.
As HOA foreclosures rise substantially and the economy worsens, the property management industry seeks to further enrich themselves during this session on the backs of homeowners with clever legislative lobbying ideas that expand unearned transfer fees, processing fees, and mandatory contributions to developer foundations, etc
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This is a shot across the bow of Privatopia in the Lone Star State that could gain momentum on anti-corporate and lawyer sentiment.
Saturday, April 16, 2011
Hands off my property, man tells HOA
Each homeowner is supposed to agree to form an HOA, but he says that did not happen."This is property rights. How can they come on my property and assess me for anything they want?"
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The plaintiff's attorney is also contending the HOA "dumped trash" on his client's title with dubious liens.
Post hailstorm email from HOA ticks off residents
"You don't say that less than 24 hours after something like this hits you," said Cindy Stuver, who lost nearly half her windows to the hailstorm. "That's wrong!" She and others are furious about the e-mail blast sent out by the local homeowners' association.
"This e-mail is to just make sure that everyone in our community is OK," HOA board member Shelly Van Blarcum wrote. The message went on to remind residents of the neighborhood guidelines that dictate homes' appearance — including the type of windows used and the color of shingles.
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This story shows how HOAs are not viewed by their constituents as a helpful entity but instead as intrusive and over controlling.
Tuesday, April 12, 2011
HOA that prohibited hoarding now talks smoking restrictions
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Can't hoard, can't smoke...how's a neurotic supposed to have any fun?
Monday, April 11, 2011
Center for American Progress: The Perils of Privatizing our Mortgage Finance System
HOA Information Office and Resource Center
"The HOA Information Office and Resource Center provides information on the rights and duties of homeowners and associations under the Colorado Common Interest Ownership Act. The Office is responsible for tracking inquiries and complaints."
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I received this link from somebody who wishes to remain anonymous. If you live in Colorado and want to register a complaint about your HOA, this is the way to do it.
Saturday, April 09, 2011
HOA goes after woman's garage as 'community center'
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One of the basic principles of Privatopia is HOAs serve to build community spirit. After all, the private local government industry markets them as "community associations." However when community evolves naturally as this story illustrates, HOAs can be decidedly anti-community.
HOA foreclosures come with price tag in troubled real estate market
The HOA has now paid thousands on the home insuring it and maintaining it all while the home sits empty, because Bank of America still holds the mortgage on the home. The bank is still owed all the money from the mortgage and has a lien on the property preventing it from being sold until it's paid off.
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HOAs like the county tax collector foreclose when property levies go unpaid. But with properties heavily burdened with mortgage debt and difficult to liquidate in the current real estate market, HOA foreclosures don't necessarily result bringing accounts current and instead increase the liability side of the ledger.
Homebuilder Pasquinelli files for bankruptcy
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Until the big collapse in 2008, Chicago was the main exception to the dominance of national home builders. In this area, there were lots of strong local home building companies and developers. But they didn't survive the collapse of the market, so if the new housing market ever comes back (and I don't assume that it will) it will be national, publicly traded firms that do the building. Just as family farms gave way to huge corporate farming conglomerates, so the home building industry seems to have turned into a mega-market where corporate goliaths swat away at each other like Transformers. Where does that leave the home buyer? Tons of relatively meaningless choices about carpets and windows and no choice about whether you will have an HOA.
Wednesday, April 06, 2011
CCHAL announces progress on SB 561
Marjorie Murray, President
Center for California Homeowner Association Law
Oakland, CA 94612
www.calhomelaw.org
From: info@calhomelaw.org
To: online@calhomelaw.org
Sent: 4/5/2011 6:32:58 P.M. Pacific Daylight Time
Subj: Senate Judiciary Approves SB561 4-1: Bill Protects both Homeowners and Associations
The California Senate Judiciary Committee voted 4-1 this
afternoon to approve SB561, legislation targeting the
predatory practices of association debt collectors. The
author of the bill is Senate Majority Leader Ellen Corbett
[D-San Leandro.] AYE votes were Noreen Evans [D-Santa
Rosa], Mark Leno [D-San Francisco], Sam Blakeslee [R-San
Luis Obispo] and Corbett.
The bill voids any foreclosure action based on contracts
that violate the state laws protecting the rights of the
homeowner or the duties of the association board during
assessment collection. The bill targets in particular
contracts that violate existing law (Civil Code 1367.1(b)
prescribing how homeowner payments are to be applied to
the debt: assessments FIRST and debt collector profits
LAST – and only after the assessments are paid in full.
This consumer protection law was created by Congresswoman
Jackie Speier when she was in the California Assembly.
Seniors – with a lot of equity in their homes – are
especially vulnerable to these predatory practices. Debt
collectors coerce seniors into signing contracts under
which the homeowner “agrees” that his payments will go
into the debt collector’s wallet instead of to paying down
assessments owed as required by EXISTING law (Civil Code
1367.1(b). Because the debt collector isn’t paying down
the assessments, the homeowner is catapulted into the
foreclosure process.
“This is irrational behavior on the part of HOAs,” said
Marjorie Murray, President of the Center for California
Homeowner Association Law. “Why do associations hire a
debt collector to go after the assessments but then allow
the debt collector to keep the money instead of turning it
over to the association that hired them? This makes no
sense.”
SB561 also targets debt collector contracts that prohibit
boards from meeting with homeowners to work out a payment
plan or to let the homeowner dispute the debt. The
typical contract penalizes boards that communicate with
the homeowner after the account has been turned over to
the debt collector: the association becomes liable for all
the collection costs.
Associations and debt collectors have been sued repeatedly
for these practices: Fuller v Association Lien Services,
Santaella v Angius & Terry, Chen v Association Lien
Services among many others.
Co-sponsors of SB561 are the Center for California
Homeowner Association Law and the California Alliance for
Retired Americans (CARA). Supporters are Congresswoman
Jackie Speier, AARP, Consumer Attorneys of California,
OWL, Consumers Union, nonprofit publisher of Consumer
Reports; Consumer Federation of California; Gray Panthers,
Californians for Disability Rights, among others.
A fact sheet on SB561 is on the CCHAL website at
http://www.calhomelaw.org/doc.asp?id=1313
The bill goes next to the Senate floor.
CCHAL NewsBrief
April 5, 2011
Tuesday, April 05, 2011
To save houses from HOA foreclosure, bill would offer up what's inside
Monday, April 04, 2011
Senator wrote HOA bills while working for HOA - Sunday, April 3, 2011 | 2:01 a.m. - Las Vegas Sun
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Thanks to Fred Pilot and others who sent me this. Having a conflict of interest is bad enough without adding to that the failure to disclose the conflict.
Sunday, April 03, 2011
Empty houses taking toll on Valley
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This is deep in the heart of Privatopia. These vacant homes demonstrate how excess leverage and irrational exuberance can decimate an entire industry, spurring overbuilding and creating tons of excess inventory by packing what would normally be 15 years of growth into five. It's no wonder new home starts are at their lowest levels since the late 1940s.
Feathers fly
Feathers fly Saturday as Sacramento celebrates International Pillow Fight Day at Fremont Park. From Topeka, Kan., to Tunis, Tunisia, cities posted events on Facebook. It's part of the Urban Playground Movement, which aims to get people off the couch and into the urban living room.
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This looks like it would be a great way to blow off steam in Privatopia. But surely all of those feathers would violate some HOA rule.
HOA Wants To Ban Kids From Playing Outside - News Story - WFTV Orlando
VOLUSIA COUNTY, Fla. -- A neighborhood homeowner's association in Volusia County is causing some controversy after it proposed banning kids from playing outside in their own yards.
Officials at the Persimmon Place subdivision in Edgewater are pushing a measure to ban kids from outdoor playing in the community, unless they have an adult with them at all times.
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It has become impossible to satirize HOAs. Every absurd and oppressive thing you can imagine has actually been done. Thanks to Rodney Gray for the link.
Saturday, April 02, 2011
Las Vegas judge blocks foreclosure by HOA collection agency
Several lawsuits are pending involving NAS and other collection agencies including a proposed class-action case in federal court in Las Vegas claiming NAS has violated the federal Fair Debt Collection Practices Act and other counts.
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It seems that Steve Green of the Las Vegas Sun is well-informed on this issue.
Citation over front yard toilet planter dismissed
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Someone call the HOA.
Testy in Texas over HOAs
And Rep. Helen Giddings, D-DeSoto, bemoaned a decade and a half of lawmaker discussions with little progress.
“This committee is really challenged,” said Giddings, the longest-serving member of the Business and Industry Committee. “The House could name a standing committee just to deal with HOA issues. That’s how many we have. And it seems like we just don’t move on.”
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Texas legislators according to this article from The Dallas Morning News are wrangling about 40 bills involving HOAs this session. Some are voicing frustration that HOA issues keep coming back year after year without meaningful resolution.
Friday, April 01, 2011
7 reasons why the mortgage crisis is dragging down the entire economy
Thursday, March 31, 2011
HOA tears down lost doggy signs
They frantically placed posters around the neighborhood to help find Baby Boy, but said someone from the Tatum Ranch Homeowners Association started tearing them down because the posters were against HOA rules.
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What was the perfessor just saying about HOAs hanging "give us some bad publicity" kick me signs on themselves? Here's yet another example.
Wednesday, March 30, 2011
America's Foreclosure Ghost Towns
Kids' lemonade stand curtailed by their homeowners association
Saturday, March 26, 2011
A Boom Behind Bars: Private jail operators like the Corrections Corporation of America are making millions off the crackdown on illegal aliens
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You always hear Republicans complaining about public employee unions. But look what happens when you privatize. The corporations who provide the privatized service get organized to influence the political process.
Now...where have we seen that happen before?
Thursday, March 24, 2011
Lips Unsealed: Third Circuit Ruling on Privilege Worries Defense Bar
That’s the implication of a Third Circuit Court of Appeals ruling (link to pdf) on Wednesday in the case of Ian Norris, one-time CEO of the Morgan Crucible Co. in the United Kingdom."
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I'm wondering how this case might apply to employees or contractors for HOAs and condo associations who speak with the corporation's lawyer, where there are questions about improprieties...
Some residents not embracing roundabouts: Communities seeking safer intersections find resistance from those unfamiliar with the circular roadways
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This is funny. Roundabouts make left turns unnecessary. Left turns are dangerous and cause delay. Roundabouts are used all over the world. But here in the midwest, some people are freaked out at the idea. Apparently they envision being stuck in the middle, going around and around until they run out of gas.
Wednesday, March 23, 2011
Avoiding defamatory material in posts
Las Vegas HOA collection agencies sue critics - Monday, March 21, 2011 | 5:09 p.m. - Las Vegas Sun
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Thanks to Cynthia Stephens for this link.
Detroit's population drops to lowest level in 100 years
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Chicago lost 7%, Cleveland 17%. But Detroit is back to the size it was before the creation of the automobile industry.
Tuesday, March 22, 2011
If we abolish HOAs and condos, what then?
I'm hoping to see something other than ALL CAPS RANTING and continued criticism of the status quo. We all know about the problems. I am interested in real solutions that could be implemented in the real world, and that go beyond the reform laws the abolitionists are always denouncing. Let's see something other than sanctimonious bombast, insults, and bomb-throwing, OK? I will delete all that stuff.
So--here are the questions:
1. If you could have your way right now and enact a law that would dissolve all existing HOAs, what would you do about the millions of homes that are now in HOAs? What would happen to the common areas? Who would own them, maintain them, and pay for their maintenance, and how would the money to do that be collected? What would become of their Declarations? Would every word be stricken from the records?
2. If you could dissolve all existing condominium associations, what would you do about the existing condominium properties and their millions of unit owners?
3. Would you also dissolve all the housing cooperatives in the country?
4. If we abolish the institutions of common interest housing as we know them, how do you envision new housing being built in the future? How will the structural considerations that drove the CID craze be addressed in new non-CID housing? These include the high cost of suburban land, the very high cost of urban land, and local governments being in dire fiscal condition. All this led to the current conspiracy between developers and local governments to spread common interest housing everywhere by mandate. (If you don't know what I'm talking about, please read up on it before commenting).
Please don't post huge chunks of copyrighted material in the comments section
The comments section is for your comments, not for posting another 250 words from the article itself. If people want to read the article, they can follow the link.
Richmond students get ready for new whooping cough vaccine requirement
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Thanks to Fred Pilot for sending me this. I was very sick with pertussis from mid-November through mid-February, and I'm still coughing in the morning. It was the sickest I have ever been in my life. Whooping cough is serious and highly contagious, and it is making a huge comeback thanks to these moron parents who think vaccinations are dangerous.
If you haven't had a pertussis booster within the last ten years, you have no protection. Better get one, because believe me--you do not want to get this. Trust me.
Monday, March 21, 2011
Righthaven loses second fair use ruling over copyright lawsuits - Friday, March 18, 2011 | 4:56 p.m. - Las Vegas Sun
U.S. District Judge James Mahan said during a hearing he planned to dismiss, on fair use grounds, a copyright infringement lawsuit filed against the Center for Intercultural Organizing (CIO), in Portland, Oregon."
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Good. I don't post or link anything from the Las Vegas Review-Journal because they allowed Righthaven, a copyright troll firm, to sue bloggers who made fair use of their stories. Now judges are showing them the door.
Sunday, March 20, 2011
Homeownership may be for the few, not the many
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You mean shoehorning yourself into a $350,000 condo isn't a wise investment? Heresy.
Fuzzy Privatization Math from New Jersey Privatization Task Force
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Governor Christie's privatization task force made a highly-publicized claim that privatization will save $210 million for the state of New Jersey. But it turns out that they did no real number-crunching to come up with that figure. Here is what they say (at p. 14.):
The necessarily short time the Task Force has had to complete its work has not always permitted the exhaustive vetting and cost‐benefit analysis that it recommends in this Report for all privatization initiatives.
Nor has the Task Force been able to calculate precise savings for the proposals that follow. This is due not only to the fact that the actual cost of a privatized alternative will often not be known until the end of a full‐fledged competitive bidding process, but also because New Jersey state government agencies have difficulty calculating with precision the full cost of functions currently performed at the state level.
The Task Force, given these constraints, has done its best to estimate the monetary savings, if any, of each of the privatization opportunities identified.
This is typical of privatization advocates. They are ideologically motivated (government bad, corporations good) and/or driven by the profit motive. The Chamber of Commerce seems to have been one of the driving forces behind the report. Some things can be done quite well by private contractors, but there are so many examples of failed privatization efforts, some at enormous public cost, that these sweeping claims have to be treated with great caution, because they are basically vaporware.
Saturday, March 19, 2011
Countryway residents stage a coup after brouhaha over money, management
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HOA Wars, Episode Fifty Thousand.
Friday, March 18, 2011
Nearly 20% of Florida homes are vacant
Thursday, March 17, 2011
Man sets townhome on fire trying to oust squirrels
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So he put a smoke bomb in the gutter and set the place on fire. Sure, he's probably living in a motel now, but hey--I'll bet he scared the daylights out of those squirrels.
Monday, March 14, 2011
California's Inland Empire wants to attract employers
Chino Mayor Dennis Yates said the Inland Empire needs to find a way to entice businesses to the area. One way to do so, he says, is to create upscale neighborhoods.
"The objective for cities in areas like the Inland Empire is to somehow entice these high-tech folks to move to the Inland Empire. We would have to create some type of Brentwood or Coto de Caza atmosphere to get them to move here," Yates said.
"And trust me, they will relocate their business. The Inland Empire is a beautiful place to live - Suburbia USA - but we have very few places like a Coto de Caza or Brentwood. ... So I think that is the problem."
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But, Mr. Mayor, can you or will you work to create these places with public funding and governance without privatizing them via mandatory membership homeowner associations? We'll take your answer in the comments section of this post.
Saturday, March 12, 2011
Industry attorney: Public policy on local govenment privatization contradictory
Given the list of benefits homeowners associations provide to local governments, it is easy to question why government is so rarely a friend to homeowners associations. Healthy homeowners associations feed tax coffers and ease budget strain for cities and counties, yet cities (and especially the state) often act as though they believe homeowners associations are an untoward restriction on individual freedom. The inherent contradiction in the local governments’ requirement that homeowners associations exist versus the state’s increasingly strict regulation of homeowners associations is the source of many difficulties the industry faces. Realizing this contradiction exists and informing our legislators of the contradiction are two important steps towards eliminating it.
If the government wants homeowners associations, it should allow them to function pursuant to their CC&Rs with minimal governmental intervention. If the government believes homeowners associations threaten individual liberty, it should not require their existence and let the market dictate their fate.
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So asserts Mark Holmgren of the law firm of Carpenter Hazelwood in a post this week on the firm's blog. Holmgren's commentary is notable in that it shows at least some degree of acceptance within community association industry circles that privatization of local government is public policy and not simply a market-driven "lifestyle" or "housing" choice.
About a decade and a half ago, an Arizona industry spokeswoman with an outfit that goes by the acronym CAI castigated the owner of this blog as a "tabloid journalist "for suggesting as much in his 1994 book Privatopia: Homeowner Associations and the Rise of Residential Private Government.
Friday, March 11, 2011
Barney Frank wants the big banks we bailed out to pay for mortgage assistance programs
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Good for him. These are some of the institutions that wrecked the economy by abusing the government-sponsored mortgage securitization process. Then we, the taxpayers, bailed out the financial industry. Then the banks we bailed out put the money in their pockets and have consistently refused to lend and get the economy going. So, how about at least paying for the mortgage relief programs?
Wednesday, March 09, 2011
Property tax revenues finally begin to decilne
But property tax receipts have begun to roll over and will likely keep falling until well after real estate prices recover, which may still be a ways off.
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Most properties haven't been reassessed yet at their dramatically lower values. Now that is beginning to happen. See the quote from my colleague Mike Pagano--it will hit harder in 2 or 3 years, at which time cities and counties will have to make some hard choices about what to pay for and "who subsidizes whom."
"Save My Mortgage Interest Deduction"
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Hello
Congress and the Administration are looking into scaling back or eliminating the Mortgage Interest Deduction. The consequences would be devastating to the recovering housing market and the tens of millions of home owners who benefit from the deduction.
The House recently introduced a resolution to retain the mortgage interest deduction and I hope that you'll help spread awareness about it on The Privatopia Papers. We created http://SaveMyMID.org to support this initiative and I've also created a useful site for bloggers and journalists to borrow resources from:
http://savemymid.info
Please let me know if you have any questions or need more information. If you are able to post about this, I'd love to get the link and share it with my team.
Thank you,
Ruth
--
Ruth Potter
Ruth@SaveMyMID.info
www.SaveMyMID.info
Monday, March 07, 2011
Is the Florida Foreclosure King Abdicating? David J. Stern Will Close His Law Firm « Above the Law: A Legal Tabloid - News, Gossip, and Colorful Commentary on Law Firms and the Legal Profession
The article says that there has been an investigation concerning the possibility of some falsified paperwork.
Wednesday, March 02, 2011
Nevada Lawmakers Discuss Homeowners Assoc. Bills
A commission on common interest communities had set caps on those fees, but Copening said Governor Brian Sandoval lifted those caps when he took office. "The governor put a cap on all regulations, so it never went into effect."
Copening is not alone in her effort. Republican Assemblyman John Hambrick.
"We have all heard of horror stories of huge fees," said Hambrick. "A $20 late bill, turning into a $5,600 penalty and all that money goes to the collective agencies. Those stories need to stop."
Copening wants a $1,950 cap on homeowners association fees. However, Hambrick said he isn't prepared to put a number on it. "I would like to see a cap, but I don't want to put a specific dollar amount on it yet."
From Fred Fischer: Nevadans share horror stories of HOAs.
When HOAs are created to satiate government bureaucrats, rather than homeowners, it shouldn't be surprising that many HOA communities are neither well-crafted nor homeowner-friendly. But, the solution to the HOA problem is not more government intervention. It is less. The first step is for government to stop mandating and subsidizing the creation of HOAs. Nick Dranias, Goldwater Institute
State legislators for many years have been getting an earful from property owners over housing association contract governance yet they fail to understand the root causes of the conflicts and act accordingly. It’s the same issues that faced early colonial America until they finally acted and abandoned charter Board governance in favor of something better where “we the people” have a place and vote at the creation table and legislators should do the same.
Privatizing services is one thing but privatizing housing is a whole other animal and without a doubt most likely unconstitutional. Because it first represents the delegation of inalieable rights to others which clearly violates constitutional law. Second it gives the developer and industry member professionals who sit at the contract creation table the right to dictate what they want the behavioral and social standards of the eventual owners to be. Even though they themselves most often do not, will not or ever live in the housing association that they create with voting standards so high that it assures that changes by eventual owners will not likely occur !!!
Mr. Drains is correct that the substantial reforms needed concerning these contractually-created associations probably won’t come from State legislation for two primary reasons. 1) The housing association trade group lobby, which is fully funded by the housing association members has the most access and greatest economic influence upon State legislators. The initial CID legislation of forty years ago that includes a large number of today’s accompanying housing association legislation was authored by the housing association trade members and supported by municipalities. Consequently neither party has an economic or social incentive to either abandon or move away from what they have exclusively created and control for their own benefit. In fact the more conflicts and problems that occur with their created “corporate product” the more the industry prospers economically and politically. 2) The very foundation of the CID housing model is its governance which is based on private contracts. Except are housing associations valid contracts when mandated and created by others as compared to if owners voluntarily create them after development build out ? When did “a meeting of the minds” between the developer and the buyers occur to create the contract? Why are the contracts (declarations) devoid of important disclosures of information that potential buyers into these nonprofit corporations are in titled to know ? When potential buyers consider signing a housing sales contract, is the attached HOA contract genuinely voluntary since refusal to accept its provisions and authority leaves the buyer with only one choice, to walk away? How can this be a “voluntary act” when neither the association nor the homeowners had actual notice or meaningful reflection to accept or reject such a contract given the fact that it was drafted by the developer as required by municipal mandate and then imposed upon the association before the homeowners existed or took control of the Board ?
The endless and “fundamentally unworkable” issues that surround privatized housing when under the authority of private contract governance created by others will continue. Until the property owners have a place, voice and vote at the governance creation table and their constitutional property and other rights returned. Because when housing is privatized, owners are reduced to being renters and only owners in name and this needs to change since contract governance is not the only or best way to govern CID housing !!
Thanks, Fred Fischer
Tuesday, March 01, 2011
BBC News - South Africa: Toxic water 'threatens Johannesburg'
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Thanks to David McKenzie for the link. Water pollution and water scarcity will be enormous problems in many places in the years to come. Phoenix and Las Vegas, for examples...
FT.com / FT Magazine - Aerotropolis
“China alone needs 500 cities the size of New Songdo,” Gale told me, and he hopes to break ground on the next one in Chongqing sometime this year. How many will be umbilically connected to the nearest airport? “All of them.” "
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Thanks to David McKenzie for this link.
Investors snap up cheap homes, new buyers miss out - Yahoo! News
The number of first-time buyers fell last month to the lowest percentage in nearly two years, while all-cash deals have doubled and now account for one-third of sales."
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And I hear that condo units are popular with this type of buyer. They form a syndicate and buy up many units in the same building so they can control the association and do whatever they want with the property.
When Will the Housing Recession End? A Graphical Illustration Why the Downturn Will Persist Through 2013
Monday, February 28, 2011
Condo deals die in shadows of financially distressed buildings
Among the deal killers: too many renters in a building, pending litigation, inadequate association reserves and delinquent assessments. Those are some of the criteria lenders must look at in order to sell the loan to Fannie Mae or Freddie Mac, the troubled, government-sponsored entities, and the Federal Housing Administration, the first choice for many first-time homebuyers. Combined, the three agencies account for about 90 percent of the secondary loan market.
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But the problem is not that the GSE's won't buy or insure the loan. The problem is that developments like this are in trouble, and the lenders know it, and the buyers should have sense enough to realize that, but they want to buy anyway. Who in his or her right mind would buy a condo unit in a building that has no reserves?
Sunday, February 27, 2011
California Proposed legislation
SB561/Corbett Targets Illegal Debt Collector Contracts
California Senate Majority Leader Ellen Corbett has introduced SB 561, a bill designed to
protect both homeowners and association boards during the assessment collection process.
HOA debt collectors routinely strike contracts with associations – or their agents -- that void the
board’s assessment collection DUTIES under EXISTING law. The debt collector then coerces the homeowner into signing a payment plan that voids his RIGHTS under EXISTING law.
SB561 targets both practices. Voiding either board duties or homeowner rights via these
contracts puts the association at legal risk.
How do these debt collection contracts work?
The debt collector coerces the homeowner into “agreeing” that, when s/he makes a payment,
the debt collector can pay himself instead of paying down the assessments owed, as required
by EXISTING law (Civil Code 1367(a). Because the debt collector is paying himself first, the
association typically gets paid last. This is irrational, given that the purpose of hiring the debt
collector in the first place is to recover assessments and give them to the HOA.
Not applying the homeowner payment to the assessment debt --obviously -- puts the owner at
risk of foreclosure.
CCHAL has documented numerous cases in which the homeowner was forced into a
payment plan, because homeowner “consent” is a condition of getting one. SB 561 clarifies
that these practices are prohibited by EXISTING law.
SB561 further specifies that the association cannot foreclose if the foreclosure is based on such
contracts. The bill says: “A waiver by an owner of his or her rights or a waiver by an association
of the association’s responsibilities under the act is void as contrary to public policy, and would
prohibit a foreclosure proceeding from being initiated or proceeding if it is based on an
agreement that is void.”
SB 561 applies to “Any debt collector, agent, or third party acting to collect payments or
assessments on behalf of an association.” This element of the bill is crucial, since debt
collectors often subcontract with other vendors during the collection process; the bill clarifies
that these parties too are bound by California’s assessment collection laws.
CCHAL urges all homeowners, board directors, and advocates to carefully read Senator
Corbett’s legislation at http://leginfo.ca.gov/pub/11-12/bill/sen/sb_0551-
0600/sb_561_bill_20110217_introduced.pdf
Reading and understanding the bill will enable homeowners and board directors in California’s
49,000 associations to counter any campaigns mounted by opponents of SB561 that distort
either its language or intent.
In 2010, the Community Associations Institute (CAI) built its statewide opposition campaign
against the Brownley bill (AB2502) around the fraudulent statement that the bill REQUIRED
homeowners wanting to negotiate a payment plan with the board to meet with the board in an
open meeting to discuss – or dispute – their debt. (AB2502 also dealt with the business
practices of association debt collectors.)
The bill said no such thing.
What AB2502 said was “IF REQUESTED BY THE HOMEOWNER, (this bill would)
require a meeting to discuss a payment plan to be held in an open session.” In other words, if
the homeowner wanted SUNSHINE shed on the negotiations, then s/he could request an open
session; if not, then the homeowner could meet privately with the board in executive session.
It was the HOMEOWNER who made the decision, but CAI claimed AB2502 forced the
negotiations out in the open.
Not true.
A Fact Sheet on SB561 -- prepared by Senator Corbett’s office -- is posted on the CCHAL
website: http://www.calhomelaw.org/doc.asp?id=1312. Use this as a guide to the bill, especially
if you are a board director, so you know what the bill says – and does.
But again, there is no substitute for reading the legislation itself. You can study it at
http://leginfo.ca.gov/pub/11-12/bill/sen/sb_0551-0600/sb_561_bill_20110217_introduced.pdf
Letters of support for the bill can be faxed to Senate Majority Leader Ellen Corbett, fax
916.327.2433. Please also thank Senator Corbett for carrying SB561 because it protects both
homeowners and associations.
Do fax (510.272.9830) a copy of your letter to CCHAL or email a pdf of it to
info@calhomelaw.org
SB561 is co-sponsored by the Center for California Homeowner Association Law (CCHAL) and
the California Alliance for Retired Americans (CARA).
SB561 specifically calls out the devastating effects of the debt collector’s predatory practices on
seniors. These cases have been documented in many NewsBriefs on the CCHAL website, e.g.
Curry v Association Lien Services; Fuller v Association Lien Services; Dacumos v Sunrise
Assessment; Santaella v Angius & Terry, etc.
A contract that one homeowner was forced into signing is on the CCHAL website:
http://www.calhomelaw.org/doc.asp?id=1156. Actually, the debt collector didn’t even demand
that the homeowner sign it: the plan says that just mailing a payment meant the homeowners
was ”consenting” to the debt collector’s plan to collect his profits first before paying down the
assessments.
A downloadable flyer of homeowner rights under EXISTING Californbia law during assessment
collection is on the website at http://www.calhomelaw.org/doc.asp?id=1315. It also lists legal
resources for homeowners.
We will keep CCHAL members posted on SB561 as it goes through the policy committees in
Sacramento.
CCHAL NewsBrief
February 27, 2011
© 2011
Saturday, February 26, 2011
L.A. Mayor Antonio Villaraigosa Wants a Six-Foot Security Wall Erected Around His Mansion
But no 'hood is small or wealthy enough to protect his royal highness. Much to the dismay of the Windsor Square Association, whose residents generally abide by the city's 42-inch yard-wall limit, Villaraigosa just applied for a six-footer:
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This lefty man of the people (he even went to People's College of the Law, after which he failed the bar exam four times) has decided that living in a ritzy community isn't enough. He needs a six foot fence to keep out the proletariat.
Friday, February 25, 2011
Nevadans Share Horror Stories Of HOAs
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Reforms are also under consideration in Arizona where longtime HOA reform activists George Staropoli and Pat Haruff are once again working to counter community association industry lobbying efforts. In California, two bills that would overhaul the Davis Stirling Common Interest Development Act have been introduced.
The (mandatory) green grass of Privatopia
Neighborhood resident Bev McLain said, "We were very surprised that we would have to do this. I've never heard of dying your lawn green. This is our second notice; with the third they threaten to take you to court."
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As the perfessor said, you can't make this stuff up. It really happens. Looks like another HOA -- this one in Arizona -- is going to get its turn in the harsh glare of negative media coverage.
News Brief from California Center for Homeowner Association Law re foreclosure prevention workshop
Hi, Evan: Please post CCHAL’s NewsBrief on its foreclosure prevention workshop held Thursday at the University of California Riverside. We had a great turnout!
More than 60 homeowners, Legal Services and private bar attorneys, homeowners, housing counselors and federal officials from the U.S. Department of Housing and Urban Development (HUD) came to CCHAL's workshop “Protecting Homeowners from Association Debt Collectors and Foreclosure” on Thursday. Also in attendance was an attorney from one of the biggest association industry law firms in the state -- Fiore Racobs Powers.
The workshop focused on the nuts-and-bolts of the association lien: who records it and why. The association lien has now become an obstacle to homeowners attempting to get a loan modification on their first mortgage. Big lenders like Chase and Bank of America are telling homeowners that unless they get the assessment lien removed, they can’t even get in line to request a loan modification.
A key tool for getting the lien removed can be an affordable payment plan. But one HUD housing counselor reported that she couldn’t get the association lawyer to respond to her multiple requests for a payment plan, much less to give the homeowner an affordable one.
CCHAL routinely gets requests for one-on-one tutorials in the assessment lien from housing counselors and Legal Services attorneys working with HOA homeowners. The goal of Thursday’s workshop was to educate both homeowners and counselors as a group in strategies for removing the lien and/or negotiating an affordable payment plan.
Assessment liens are also an obstacle to short sales [Keyword: SHORT SALES on the CCHAL website.]
What few people understand – whether homeowners or counselors – is that the assessment lien may come to haunt the owner even if the bank forecloses. Workshop trainer Attorney Dan Mulligan explained that, if left unpaid, the assessment debt becomes a personal debt of the homeowner long after the home has been lost.
CCHAL sent a NewsBrief recently about the homeowner sued by Angius & Terry Collections for $11,000 in assessments and collection costs on a home she lost to foreclosure two years ago. The bulk of the figure is actually collection costs – not assessments due the association.
Association debt collectors routinely levy collection costs that are 5-10 times the amount of the assessments owed. There are no statutory caps on collection costs and assessment debt collectors are not regulated.
We hope that the attorney from Fiore Racobs Powers brings this message back to the HOA industry as a whole: its collection practices are injuring homeowners and creating more obstacles to economic recovery. If they themselves don’t reform their business practices, then somebody else might do it for them.
The workshop was held at the University of California Riverside Extension Center. We will soon be posting photos from the workshop on the CCHAL website: www.calhomelaw.org in the photo gallery.
CCHAL foreclosure defense workshops are made possible through the support of the California Attorney General's office.
CCHAL NewsBrief
February 20, 2011
Sunday, February 20, 2011
Annandale civic association elects dog as president
Dogs have many good qualities. Most of them are loyal, like people, and are housebroken. Can the same be said for all the humans who serve on boards like this?
I wish the Hillbrook-Tall Oaks Civic Association a good year under their new canine overlord. Woof.
Saturday, February 19, 2011
Homeownership loses its luster
Adding to that is a sense among many younger adults that they will need to move for their careers, making them hesitant to buy lest they be forced to sell at a loss.
"We're becoming more of a renting/sharing society," said David Sleeth-Keppler, a psychologist who tracks consumer sentiment for Strategic Business Insights. "People are staying less bogged down, in case something bad happens."
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The pundits are saying people are so traumatized by the enormous volatility in residential real estate during the previous decade that they see homeownership as too risky an investment. However, as long as mortgage interest remains income tax deductible, that tax policy will provide an abiding incentive to own rather than rent and a hedge against downside investment risk.



