The Modern Day HOA

The Modern Day HOA
This program just aired live on WUNC, a public radio station in North Carolina. I was on with three other guests.
(I corrected the link--thanks to George Staropoli for the correction.)

Trade Groups Push FHA to Reconsider Condo Loan Guidelines | Reverse Mortgage Daily

Trade Groups Push FHA to Reconsider Condo Loan Guidelines | Reverse Mortgage Daily
Community Associations Institute, the President of Institute of Real Estate Management, National Association of Home Builders, and National Association of REALTORS® jointly wrote a letter to the U.S. Department of Housing and Development suggesting several “enhancements” to the Federal Housing Administration’s condominium requirements.
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And CAI has some specific criticisms here.

Saddlebrook residents claim HOA board withheld documents, rigged elections

Homeowners under HOAs may find themselves at the mercy of a board that uses their dues to finance protracted legal battles that silence opposition, Bergemann said.

"It becomes a literal dictatorship in a country that is supposed to be the land of the free," he said. "You only have recourse if you can wake up a majority of the owners, which is really difficult, and if you can pay to fight the lawyers."
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In Privatopia, the right to petition for redress of grievances often means filing a costly petition in the courts.

Mortgage Servicers Latest Troubles: Homeowners Association Fees - American Banker Article

Mortgage Servicers Latest Troubles: Homeowners Association Fees - American Banker Article
Florida is the "lion's den" when it comes to problems with homeowners associations, says White, who has seen HOA fees in excees of $100,000. He estimated that 15% of properties with an HOA have some type of "escalated issue, whether it's the HOA actually foreclosing or charging junk fees or holding the bank liable for assessments before they were responsible for the property."
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It seems that condos and HOAs, and their lawyers and managers, are getting a bad reputation with a wider circle of people. Now the mortgage servicers are getting fed up with the grasping behavior that has long aggravated many home owners.

Thanks to Fred Pilot for the link.

Family fights HOA for their precious pet, Wilbur the pig

HOUSTON—A local homeowner is fighting to keep her precious pet.

Wilbur the pig is beloved by his owner, but not so popular with some neighbors.

"It’s really emotional, because we’ve gotten attached to him," said Wilbur’s owner, Missy Sardo.

The Sardo family’s home is located in the 3400 block of Fir Forest Dr. in The Thicket subdivision.

Last week, they received a letter from their homeowner’s association informing them their 60-pound, 8-month-old pot-bellied pig would have to go. They were given 30 days to find him a new home.
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The HOA versus pot bellied pig is a frequently reported story in Privatopia but not as common as HOA versus American flags flapping on flagpoles or HOA versus solar panels.

Rejoining the 21st century

We here in Lake County, IL, were hit by a major storm at 8am on Monday. I have been without electrical power in my home and my office for two days, and the power just came on at home. In the meantime I have been unable to attend to some very pressing work. Until I get caught up I won't be able to post much here.

Courts award $400,000 for botched renovation by condo president

A Boca Raton condo owner has won a $400,000 court judgment against an unlicensed contractor who allegedly falsified invoices and violated the terms of his contract by charging triple what he was paying his subcontractors.

But what made owner Don Nadick's case unusual: The contractor, Richard Pettoni, was Nadick's condo board president. Nadick said that fact made him figure he had nothing to worry about when Pettoni approached him in 2009, claimed to be a general contractor and offered to handle Nadick's $120,000 renovation job.

But Pettoni never had a contracting license, state records show, a violation of the condo rules he had been elected to uphold.

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Oh, how can we fleece thee? Let us count the ways!

Neighbor vs. neighbor as homeowner fights get ugly

The Inlet House condo complex in Fort Pierce, Fla., was once the kind of place the 55-and-older set aspired to. It was affordable. The pool and clubhouse were tidy, the lawns freshly snipped. Residents, push-carts in tow, walked to the beach, the bank, the beauty parlor, the cinema and the supermarket. In post-crash America, this was a dreamy little spot. Especially on a fixed income.

But that was Inlet House before the rats started chewing through the toilet seats in vacant units and sewage started seeping from the ceiling. Before condos that were worth $79,000 four years ago sold for as little as $3,000. And before the homeowners' association levied $6,000 assessments on everyone — and then foreclosed on seniors who couldn't pay the association bill, even if they didn't owe the bank a dime.

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How's this for protecting property values? A $6,000 special assessment on a unit purchased for $79,000 and now valued at $3,000. The idea of "carefree living" can be very appealing but here is one of the risks associated with putting Charlie neighbor in charge, especially in a lower income property.

ps from Evan: Don't forget this: "But today, encouraged by a new industry of lawyers and consultants, boards are increasingly foreclosing on people 60 days past due on association fees, says Evan McKenzie, a former homeowner association attorney who is now a University of Illinois political science professor and the author of the book "Beyond Privatopia: Rethinking Residential Private Government."

Letter: We plan to picket over dispute with homeowner's association

White "picket fence" takes on a new meaning in Privatopia.

State Offers New Options For HOA Help

DENVER (CBS4)- There are more than 7,500 homeowners’ associations in Colorado. They govern more than 2 million people. HOA’s are big business. And when neighbors are governing neighbors there are bound to be problems.

“Spending my money for other people’s expenses, didn’t sit well,” Karen Templeton said of her homeowners’ association.

“They wouldn’t let me see the books… could not see the books. I questioned financial statements, they wouldn’t tell me answers,” Jim Burneson said of his HOA.

“Where did the money go? What’s going on?” said Sue Williams about her HOA

A group of homeowners met with CBS4 to discuss their problems with their various homeowner’s associations. They represent several neighborhoods but describe the same sort of issues. Conflicts in homeowner’s associations can get petty and personal.
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That's because private local government -- i.e. mandatory membership HOAs -- has a weak or nonexistent culture of governance. Instead, it's rule by Joe, Mary and Bob on the board. And when constituents demand the accountability to which they are entitled, the request is taken personally -- not surprisingly since it's government by personality.

By the same token, expenditures are also taken personally as Karen Templeton's comment illustrates. Rather than benefiting all constituents, they're seen as Joe, Mary's or Bob's pet projects financed with other people's money -- their money.

Not exactly a model for a sustainable form of local government over the long run but for now serves to generate short term revenues for the CID bar when the conflicts head to court.

Former Brigantine condo officials charged with theft, fraud

Brigantine police charged two former Spartan Harbour Condominium officials and a local contractor with theft and conspiracy in an alleged fraudulent billing scheme against the city, police said.

The charges allege that from 2004 to 2008, former Spartan Harbour property manager Walter Czyzewicz, former Spartan Harbor board President Richard DeBenedetto, and Robert Musumeci, the operator of the Moose’s Cans dumpster service in Brigantine, conspired to defraud the city of Brigantine of more than $75,000.

“The city reimburses all condo associations in town for their trash removal based on a certain formula,” Lt. James Bennett said in a release, “and according to reports, there was a marked increase in the amount the Spartan Harbour Association was submitting from a company known as Moose’s Cans.”

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The Spartan has since been renamed Dolphin Cove Condo

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No one is safe, not even the city.

96-Year-Old Being Forced Out Over Storm Preps

Sarah Eisenberg has lived through many storms in her 96 years, but the ominous forecast she faces these days comes from the association that runs her condominium.

Eisenberg said that she has been told that if she doesn't pay to upgrade to hurricane windows and doors, the association will foreclose on her Fort Lauderdale unit.

The cost is $6,500, a price tag too expensive for a senior citizen on a fixed income, Eisenberg said. She gets $1,500 per month from her Social Security check.

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Associaions just plain have too much power.

Experts: Pinellas lawyer takes foreclosure fight to ethical edge

Pinellas County lawyer Robert L. Tankel advocates showing no mercy toward property owners who fall behind on their homeowners association fees.

"If you have to sue some people, that's life," Tankel advised associations in a YouTube video.
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How charming. A lawyer who prides himself on exploring the outer reaches of ethical behavior in his pursuit of owners who are behind on their assessments.
Thanks to Robert Racansky for the link.

SA homeowner says HOA forced him to plant a yard in a drought .

SAN ANTONIO --With 100-degree, hot, dry days, Armando Urdiales decided to plant a new lawn.

Well, not really. It was his HOA, he said, that suggested it, after they found patches of dirt amongst the withered blades in his front yard.

Urdiales said, "That was the kicker for me. Really? You're going to tell me to grow grass in a drought."

The social studies teacher says after receiving two, threatening letters in the last 60-days, he planted $150 worth of sod and started watering it.

"Isn't there a better use of our resource--of our precious resource of water--other than maintaning grass?” he said.

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"And so, Dear Homeowner, unless you do as we say we can fine and then foreclose to collect that fine. Don't forget you agreed so no going back now."

Yep, I can see long lines of people clamoring to be part of this wonderful regime, where the abuses and fines flow like cheap wine- since water is at a premium.

Thanks to Beanie Adolph for the link.

Complex system leaves foreclosure properties to become eyesores

TAMPA — Standing at the end of a quiet suburban cul-de-sac, Gene Minkel surveyed one tiny battleground in a nationwide fight that often pits local governments against Wall Street.

The veteran Hillsborough County code enforcement officer looked over 7501 Woodland Oaks Ct. and wished Bank of America would mow the waist-high weeds. Or patch the shattered windows. Or get rid of the wasps that have taken up residence.

The 1,300-square-foot home has sat largely vacant since falling into foreclosure more than two years ago, racking up $55,372 in code violations while the case lingers in court. A tattered sign out front informs visitors that BAC Field Services, a subsidiary of the megabank, “intends to protect this property from deterioration.”

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There is something to be said for returning to the simpler way of homeownership. We seem to have created too many victims in this complex and complicated mess we have made in residential America.

George Will Spreads Some Lies About the Economic Crisis | Beat the Press

George Will Spreads Some Lies About the Economic Crisis | Beat the Press
It really is incredible to see such a concerted effort to rewrite history in front of our faces. There is not much ambiguity in the story of the housing bubble. The private financial sector went nuts. They made a fortune issuing bad and often fraudulent loans which they could quickly resell in the secondary market. The big actors in the junk market were the private issuers like Goldman Sachs, Citigroup, and Lehman Brothers. However, George Will and Co. are determined to blame this disaster on government "compassion" for low-income families.
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That's the start of Dean Baker's demolition of George Will's latest Tory pontificating in the Washington Post.

Vietnam War Veteran Wins Fight to Fly American Flag on Front Lawn

Quigley's fight was buoyed by an outpouring of popular support. Sympathetic fellow citizens in the U.S. rallied to his cause, but people all around the world took his side. His plight got worldwide coverage. He heard from supporters in London and in India. "I've gotten calls from Macedonia," the surprised retiree said. "I don't mean from Macedonia, Ohio. I mean from Macedonia."

According to ABC News, the American Legion will return to Quigley’s home on July 4 at 11 a.m. to conduct a second flag-raising. "We expect quite a large turnout," Legion commander John J.C. Sullivan said. "A lady called from California who's a singer of patriotic songs. She'll be there [to] sing."

"Somebody should have been a little smarter about it, in particularly the homeowners association. They brought tremendous negative publicity upon themselves," said John Sullivan, president of the American Legion Post 801.
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Another HOA flag flap ends as the HOA wilts in the hot glare of global media attention and outrage.

HOAs and Hawaiian shirts

And while you can expect a judge to keep a straight face while you describe how the neighbor kids like to congregate at 2:30 a.m. at the basketball hoop next door to dribble and carom the ball off the rim hard and loudly 315 times in a row, it’s quite difficult to expect the same when you testify that your neighbor’s phony saguaro is keeping you up nights.

Playing the property values card is pretty silly even during times of rising home prices. Few if any real estate appraisers are willing to state for the record that they downgraded a house’s value because the people across the street had a metal saguaro in the front yard.

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But the HOA nevertheless sees that metal saguaro as the first step on the path to neighborhood ruination.

Mistake costs Leisure World Seal Beach nearly $273,000

The retirement community was penalized after its management company failed to pay the majority of a total of $3.5 million in property taxes on time.
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Ouch..

The story of Dune, recreated with Gummi worms

The story of Dune, recreated with Gummi worms
This has nothing to do with anything, but it is cool beyond belief.

Villaraigosa Ignores Outcry, Will Build 6-Foot - Flash Player Installation

Villaraigosa Ignores Outcry, Will Build 6-Foot - Flash Player Installation
LOS ANGELES (CBS) — Despite the objections of his neighbors, Mayor Antonio Villaraigosa has ordered city officials to proceed with a plan to erect a six-foot wall around the mayor’s mansion.

The wall — which would flank the sides of Getty House in Hancock Park — recently drew the ire of local residents in February when Villaraigosa filed a request for a local variance that prohibits any fencing that exceeds 42 inches in height.
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Interesting post-apocalyptic approach to home security for a lefty mayor who is trying to force people to move back into downtown LA, despite their fears about crime.

UIC News - Homeowner associations failing, expert says

UIC News - Homeowner associations failing, expert says
This is some home-cooked publicity from the UIC News, our campus newspaper.

Private Community Associations: Boon or Bane for Local Governance?, Recorded on 6/30/2011 urbaninstitute on USTREAM. Other Events

Private Community Associations: Boon or Bane for Local Governance?, Recorded on 6/30/2011 urbaninstitute on USTREAM. Other Events
Watch it for yourself--yours truly and economist Robert Nelson.

Condo HOA employs fecal forensics to crack down on dog doo

JUPITER — If your pooch poops, you pay.

Plagued with pets that do business in all the wrong places, dog owners in the Village of Abacoa, a condominium association of 458 units, must pay a $200 fee starting Aug. 1. The money will pay DNA Pet World Registry to take the dog's genetic fingerprint and keep the information on file.

Doggie droppings found in condo common areas will be collected and mailed in a plastic tube to the Knoxville, Tenn.-based company.

If the poop matches the pooch, the owners can be fined up to $1,000. If they don't pay, a lien can be placed on their home, said Susan Nellen, property manager for Versa Property Management, which manages the condo near Roger Dean Stadium.
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Humans have a symbiotic bond with canines built over millenniums. Modern day co-existence however can be difficult, particularly when humans and their animals live in close quarters such as condo complexes. Watch where you walk.

New York Attorney General Eric Schneiderman opposes foreclosure deal | Democrat and Chronicle | democratandchronicle.com

AG Eric Schneiderman opposes foreclosure deal | Democrat and Chronicle | democratandchronicle.com
New York Attorney General Eric Schneiderman expects to lead opposition to what he called a "quick, cheap settlement" of a 50-state investigation into foreclosure practices. Schneiderman put the monetary settlement being discussed with the largest U.S. mortgage servicers at $20 billion to $25 billion and said he will take "the hardest line" against it.
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Sock it to them.

The Courier - Zombie planning — undead hordes no threat to Dundee City Council

The Courier - Zombie planning — undead hordes no threat to Dundee City Council
It's nice to see that at least one local government is taking steps. Sadly it is in the UK. Everybody knows the zombie invasion will start here in the US, probably in a state where they think Michelle Bachmann would make a great president.

The Urban Institute | Events Versus -- Private Community Associations: Boon or Bane for Local Governance?

The Urban Institute | Events Versus -- Private Community Associations: Boon or Bane for Local Governance?
...in which yours truly will be debating libertarian economist Robert Nelson, Thursday at 9:00 am Eastern Time. It will be webcast live! Tune in.

Muni Defaults Still Coming, But Timing Unclear: Whitney - CNBC

Muni Defaults Still Coming, But Timing Unclear: Whitney - CNBC
With the clock ticking on her prediction that scores of municipalities would default on their bonds, analyst Meredith Whitney both amped up the rhetoric and backed off on the timing for her highly controversial call.
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I gather that many people think she is wrong about this, but it does seem possible that if this sort of thing got started, it could take on momentum.

The next mortgage bombshell

Private mortgage insurance companies to go belly up?

The private insurers that cover $700 billion of U.S. mortgages are facing an onslaught of foreclosures. The big three—MGIC, Radian, PMI—are at risk.
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Can anybody say that the federal government has done a good job restoring the health of the housing market? I'm not saying that they have all the answers, but really--can't we expect three years into this debacle that we would have seen the last of the major institutional failures?

Tampa retiree says he lost belongings in foreclosure blunder - St. Petersburg Times

Tampa retiree says he lost belongings in foreclosure blunder - St. Petersburg Times
Santiago's attorney, J. Scott Murphy, said in the complaint that agents from Field Asset Services were hired by Countrywide Home Loans to carry out janitorial and cleanup services to a condominium next door — at 4255 W Humphrey St.

Santiago lives in a single-family home at 4205 W Humphrey St.

In the fall of 2009, when Santiago and his son, Benjamin Santiago Jr., returned to the northwest Tampa home after spending time in New Mexico, they discovered a big sign posted on the house that read Field Asset Services.

The locks were changed and a padlock was left on the front door. Everything was gone.
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This is another bogus foreclosure outrage situation. Wrong house. They took everything he had, including the photos of his dead wife. And the attorney for the people who did this of course denies any wrongdoing.

Thanks to Mystery Reader for the link.

HOA gets new chance to bar yard sculpture

HOA gets new chance to bar yard sculpture
The first time around the HOA lost because the governing documents didn't specifically mention sculptures. Now they get a chance to show that the sculpture is unsightly, which could be difficult given that old saying, de gustibus non est disputandum. Thanks to Mika Brainy for this link.

New Zoning Laws Allow for New Neighbors—Meet the Goats Next Door

First came the chickens, then the bees. So what’s the next animal that may be residing in a backyard next to you? Maybe goats. As the small-scale urban animal husbandry movement becomes a force in everyday urban life, more and more jurisdictions are being forced to revamp their laws to allow residents to hatch their own eggs, keep their own hives and—now—tend their own goats.
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So suburbanites will be raising their own chickens, growing their own corn, and maybe butchering their own hogs. Sounds like we are sliding back into the 19th century. But not if you have an HOA...

Indiana's bumpy road to privatization

Though the $1.37-billion project proved disastrous for many of the state's poor, elderly and disabled, it was a financial bonanza for a handful of firms with ties to Daniels and his political allies, which landed state contracts worth millions.

The disparate effects underscore the risks of handing control over public services to the private sector. Whether the approach will ultimately improve services and save money remains a matter of fierce debate in Indiana. But the state's experience shows that without adequate safeguards, privatization can compound the very problems it is designed to correct: bureaucratic burdens, perceptions of influence-peddling and a lack of competition.

It's an issue that is likely to persist, as Republicans in statehouses nationwide turn to private companies as they seek to shrink government and weaken the hold of public-sector unions. 
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While this blog focuses on the problems that come with wholesale privatization of local government in the form of mandatory membership HOAs, apparently there are problems with privatizing discrete government services as well.

Jerry Brown says Proposition 13 could be tested if budget talks fail

Gov. Jerry Brown hinted Thursday that if the budget talks with Republicans break down, the initiative fight that would follow would not be limited to Brown's plans to raise sales, vehicle and income taxes. He said he expects labor groups to pursue changes to Proposition 13, tweaking the current caps on commercial property taxes, if no bipartisan deal can be reached.
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First the good perfessor (that killjoy McKenzie guy) gets some press accompanying his latest book, Beyond Privatopia: Rethinking Residential Private Government with early media accounts honing in on the book's suggestion that HOAs are unsustainable and could face extinction.

Now comes California Gov. Jerry Brown -- who has predicted a ballot box mother of all initiative wars (Brown prefers the term "war of all against all") -- as the state remains mired in a partisan fiscal standoff and unable to enact a budget for the fiscal year starting July 1. Brown told a gathering of 250 apartment owners and developers today that sacred political cows such as Proposition 13 may be put up for alteration by the electorate in this bellum omnium contra omnes. (The audience is notable given that apartment owners provided much of the support and funding for the successful 1978 initiative).

What does Prop. 13 have to do with HOAs? By sharply limiting property tax increases, the ballot initiative spurred local governments to find creative ways to protect property tax revenue while limiting services. As self financing privatized local governments, HOAs nicely accomplish that objective since the HOA property owners pay property taxes but require fewer services.

In the current economic/political climate, I'm betting voters wouldn't think twice about carving out commercial properties from Prop. 13's provisions limiting ad valorem property tax increases. If Prop. 13 is changed to provide more property tax revenue to California local governments, one of the major drivers of privatized local government in the form of mandatory HOAs could be reduced. And what happens in California (like the property tax revolt of Prop. 13) tends to influence other states.

Homeowners’ Associations Becoming Unavoidable and Quasi-Governmental - Rachel Alexander - Townhall Conservative

Homeowners’ Associations Becoming Unavoidable and Quasi-Governmental - Rachel Alexander - Townhall Conservative
Homeowners’ Associations (“HOAs”) are losing money due to the high numbers of foreclosures and are scrambling to make up for it by assessing additional fees on the remaining homeowners.
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This is what happens when a conservative gets mugged by her HOA. Suddenly all the great virtues of the "private sector" and "freedom of contract" turn into oppression. And it is OK to hate them, because they are really "governmental"! Thanks to Shu for the link.

Neighbors pull plug on injured vet's home | The Augusta Chronicle

Neighbors pull plug on injured vet's home | The Augusta Chronicle
"An Evans neighborhood association has blocked a group that was prepared to build a home free of charge for a local veteran who was injured in Afghanistan. The homebuilding group, Homes for Our Troops, says Knob Hill Property Owners Association approved the home's design June 2 but reversed its decision in a later meeting."
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The stupidity just goes on, and on, and on...

Property manager accused of shady business | WJLA.com

Property manager accused of shady business | WJLA.com
Another one of those isolated instances, demonstrating once again that everything is fine in condo/hoa land and there is no need for any pesky governmental interference to protect owners from being taken to the cleaners. Thanks to Rodney Gray for the link.

Homeowners Associations: On the Way Out?

Evan McKenzie, a political science professor at the University of Illinois at Chicago, argues in a new book that homeowners associations inherently infringe on people's rights, and that their time is limited.
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What a killjoy this McKenzie guy is.

Macedonia homeowners association tells veteran to remove flagpole, vet fights to keep it

Macedonia homeowners association tells veteran to remove flagpole, vet fights to keep it
Here we go again. This one is from Ohio.

Property Manager Accused of Stealing Condo Association Fees - Freehold, NJ Patch

Property Manager Accused of Stealing Condo Association Fees - Freehold, NJ Patch
Theresa Tierney, 59, of Oakhurst, was indicted Monday for allegedly stealing hundreds of thousands of dollars from Strickland Farms Condominiums in her capacity as property manager, the Monmouth County Prosecutor’s Office said in a press release.
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Another "isolated instance." I think that makes number 5,678. Thanks to Shu Bartholomew for the pointer.

Summerlin North enters HOA Hall of Shame

It all began last year when the original gates put in by the developer bit the dust.

"They were all bent out of shape, they were black, they were chipped and rusty. There was never any complaint from Summerlin North to do something about those ugly gates. They finally closed on a car and trapped somebody in there."

Reeve found the gates would cost less to replace than repair. So his board approved a new gate design and submitted it to master association Summerlin North.

"I contacted Summerlin North and said this situation we have--these are our front gates, not somebody putting a plant in their front yard that you have to approve. I said we have to move on it."

But he says the master didn't move fast enough. And since they couldn't imagine there'd be any problem with the design, they went ahead and installed them.

But soon after the gates went up, Summerlin North told them to take them down.
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An account of the "frictional costs" of forting up in America.  And the private local government bar is laughing all the way to the bank.

Judge orders ISP to release names of Wikipedia posters who slammed Facconable - The Denver Post

Judge orders ISP to release names of Wikipedia posters who slammed Facconable - The Denver Post
This is a federal magistrate, by the way. Anonymous posters need to realize that they can't just defame people online and remain anonymous. The ISP can be hit with a subpoena and ordered to release certain identifying information on Mr. or Ms. Anonymous, such as their IP number. As many readers of this blog know, Google was served with a subpoena like that regarding posts on this blog that said critical things about thin-skinned Texas State Senator John Carona and his "Associa" property management empire.

The perils of 'Privatopia': Taking a second look

The perils of 'Privatopia': Taking a second look

Judge finds Maryland HOA cannot fine rulebreaker

The Orchards’ declaration of covenants does not give the HOA the right to impose fines, so it does not have that power, McGann wrote April 8. Amending its declaration with a bylaw did not give The Orchards the power to impose fines, he stated.

A smaller percentage of homeowners must approve a bylaw than a change to a declaration, giving bylaws less power than declarations and articles, Schild said. To change a declaration, a homeowners association must gather the approval of at least 75 percent of residents, he said, while a bylaw does not need even a majority vote.

“The power to fine is punitive and inherently comes from a state, or a city, or a municipality and it is done originally in the areas of criminal offenses,” he said during a March 29 hearing. “That is where the state has the ability to fine people.”
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A Maryland judge apparently sees police powers reserved for public (constitutional) local government and not Privatopia.

Judge rules Righthaven lacks standing to sue, threatens sanctions over misrepresentations - VEGAS INC

Judge rules Righthaven lacks standing to sue, threatens sanctions over misrepresentations - VEGAS INC
"A federal judge in Las Vegas today issued a potentially devastating ruling against copyright enforcer Righthaven LLC, finding it doesn't have standing to sue over Las Vegas Review-Journal stories, that it has misled the court and threatening to impose sanctions against Righthaven."
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Not only that--the judge is allowing the website (Democratic Underground) that was sued by Righthaven to continue its own suit against Stephens Media, LLC, owner of the Las Vegas Review-Journal. And Righthaven has to show cause why it shouldn't be sanctioned for "flagrant misrepresentation to the court."

If you don't know the story, the LVRJ authorized Righthaven to sue bloggers and other web sites that reproduced LVRJ stories from their online edition. This was an unjustified and, I think, ultimately a self-destructive thing to do. And now the judge is dropping the Hammer of Thor on both Righthaven and the company that owns the LVRJ. I think that's what they call "karma."

California to suffer housing shift, UCLA forecasters say

UCLA forecasters have seen the future of California's housing market, and it looks like this: more apartments near the coast, fewer McMansions in the desert.

That prediction is based on several factors, including expectations that rising fuel prices will encourage people to live closer to jobs along the Southland coast and in the San Francisco Bay Area.

The state's population is also skewing younger, meaning there will be more demand for urban rental units and less demand for suburban cul-de-sacs, according to the quarterly economic forecast released Wednesday by UCLA's Anderson School of Business.
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That also means less market demand for inland detached unit PUD-style CIDs. Wither Privatopia?

My favorite line from the Republican presidential candidate debate

"I do support a constitutional amendment on marriage between a man and woman, but I would not be going into the states to overturn their state law," said Bachmann.

Read more: http://www.cbsnews.com/8301-503544_162-20070956-503544.html#ixzz1PJcZiX9F

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The entire purpose of the proposed amendment is to invalidate same sex marriage in every single state in the USA. As in: "Marriage in the United States shall consist solely of the union of a man and a woman. Neither this Constitution, nor the constitution of any State, shall be construed to require that marriage or the legal incidents thereof be conferred upon any union other than the union of a man and a woman.

So...huh? Say what? This is better than when she said the Battles of Lexington and Concord happened in New Hampshire.

And today all the papers are full of lemming-like commentary about how great a job she did in the debate, and how smart she sounded, and how cool she looked in that black dress, which was like TOTALLY different than the red ones that Sarah Palin wears.

Is Gold in Fort Knox Real? Ron Paul Wants to Know - CNBC

Is Gold in Fort Knox Real? Ron Paul Wants to Know - CNBC
Giving legitimacy to an Internet conspiracy theory that the gold in Fort Knox is fake, the iconoclast Republican congressman from Texas has asked adminstration officials to audit the purity of the nation's 700,000 gold bars held in Fort Knox, according to an internal Treasury document obtained by CNBC.
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And he is up on a stage with the other Republican Party presidential candidates. All he has to do is rent a copy of Goldfinger and he can see the gold for himself. Along with the fossilized skeleton of Oddjob.

Giordano's strange bankruptcy - chicagotribune.com

Giordano's strange bankruptcy - chicagotribune.com
John Apostolou's businesses owe $45.5 million to Fifth Third Bank, and he has been forced to relinquish control of pizza chain he has owned since 1988. His ties with a sovereign citizens group are complicating court proceedings.
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Giordano's is a popular chain of pizza restaurants in the Chicago area. I was not aware that the owner was connected to the sovereign citizen movement. Things just get stranger all the time, don't they?
Thanks to Mystery Reader for this link.

Did you hear the one about the stolen front lawn?

Did you hear the one about the stolen front lawn?
EDMONTON — Denise Thompson had a beautiful front lawn, thick and green. It was where her four children and two dogs played, and where she drank coffee on sunny mornings.

Then someone stole it. They didn’t even leave a note.
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Scottsdale HOA takes on Steven Seagal

Scottsdale HOA takes on Steven Seagal
Another HOA decides to create physical obstacles to entry. This time, though...they are messing with the star of a whole series of movies that had three things in common: 1) They all had "kill" or "death" in the title; 2) they all included some major league butt-whipping; 3) they all star Steven Seagal.

Thanks to Mystery Reader for this link.

Iceland Crowdsources Its Constitution

Iceland Crowdsources Its Constitution
As it drafts the country’s new governing document, Iceland’s Constitutional Council is turning to social media sites to make the process transparent and to collect input from the public.

The council has made a draft of the document available online and is accepting recommendations for amending it.
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If we Facebooked the Constitution who knows what we would end up with?

Supreme Court Upholds Nevada’s Law on Conflict of Interest - NYTimes.com

Supreme Court Upholds Nevada’s Law on Conflihttp://www.blogger.com/img/gl.bold.gifct of Interest - NYTimes.com
"The Nevada law requires elected officials to disqualify themselves, much as judges often do, when they are asked to vote on matters that touch on what the law called a “commitment in a private capacity to the interests of others.”
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Hey, does Texas have a law like that?

HOAs can't keep Old Glory down if governor OKs restrictions | Houston & Texas News | Chron.com - Houston Chronicle

HOAs can't keep Old Glory down if governor OKs restrictions | Houston & Texas News | Chron.com - Houston Chronicle.
I'd say the other bills are more important than a law guaranteeing the right to a 20 foot flagpole. For example, I think the priority of payments issue looms a bit larger than getting one's flag into the stratosphere. People are losing their homes in foreclosure because of attorney fees and property manager charges, even after paying enough to satisfy all the HOA's assessment charges. Thanks to Shu and others for sending me this link.

Slump in construction industry creates a Sheetrock ghost town - CSMonitor.com

Slump in construction industry creates a Sheetrock ghost town - CSMonitor.com
"The Sheetrock producing Empire, Nev., will become a ghost town June 20. The isolated company town quit mining gypsum and dry wall production this year as a result of the construction industry slump."
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Condo association settles Civil Rights allegation its actions forced woman with lung illness to park a mile away from her residence | NJ.com

Condo association settles Civil Rights allegation its actions forced woman with lung illness to park a mile away from her residence | NJ.com"TRENTON – A Mays Landing condominium association has agreed to pay a medically-disabled resident $10,000 and forgive thousands of dollars more in maintenance fees owed by the woman to resolve allegations that it unlawfully discriminated by failing to accommodate her disability, the Division on Civil Rights said Wednesday." Thanks to Shu Bartholomew for this link.

Car Blocked in Driveway by HOA

Angry crows dive-bomb officers in Everett, Wash.

Lt. Bob Johns said he recently was flanked by the aggressive birds and "got zinged."

"They're like velociraptors," Johns said.

One officer used his siren to try to scare away the crows, but it didn't work. The birds responded by decorating his car with droppings, The Daily Herald reported.

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

Time to call in an HOA.

Treasury To Temporarily Penalize Mortgage Companies, Making Good On Old Threat

Treasury To Temporarily Penalize Mortgage Companies, Making Good On Old Threat
"WASHINGTON -- The Treasury Department will temporarily withhold payments to the nation's three largest mortgage companies for failing to comply with the Obama administration's signature foreclosure-prevention effort, perhaps finally making good on a 19-month-old threat, officials announced Thursday.

Bank of America, Wells Fargo and JPMorgan Chase, which collectively service about half of all home loans, abused homeowners and violated the rules of the Making Home Affordable (MHA) program, Treasury said."
------------------------
Can we get a great big round of "IT'S ABOUT TIME!!! SOCK IT TO THEM!"

Nev. bill dies, but HOA fee court battle lives on

Homeowners associations — where residents pay monthly dues to maintain common amenities such as pools and landscaping — were lightning rods during the legislative session, evidenced by the 20 bills introduced on the topic. Tensions between neighbors take on a whole new level when one can fine another for not replacing a flickering porch light or leaving the trash can on the sidewalk too long.

But the recent foreclosure crisis added fuel to the fire in homeowners associations, which are especially widespread in Las Vegas' relatively new neighborhoods. As more and more homes were repossessed, associations were unable to collect dues to maintain landscaping and common buildings, and collection agencies stepped in to help.
-----------------------------------
We're just trying to save the neighborhood.

The next foreclosure fight, redux...

I received an email from William Brown of Scottsdale, AZ, asking for a reposting of the above-linked post with its many comments. I agree that it was a great video and discussion, so here it is.

Our Fantasy Nation? - NYTimes.com

Our Fantasy Nation? - NYTimes.com
Guess what country most resembles the Tea Party's prescriptions for the USA?

Oh, and this:

"I’ve always made fun of these countries, but now I see echoes of that pattern of privatization of public services in America. Police budgets are being cut, but the wealthy take refuge in gated communities with private security guards. Their children are spared the impact of budget cuts at public schools and state universities because they attend private institutions."

The HOA at Lexington Crossing | Flickr - Photo Sharing!

The HOA at Lexington Crossing | Flickr - Photo Sharing!
Check out this situation. Click the link above and you will see a photo. Click the link below that says "Car Stuck in Garage by HOA" and you will read the story behind it. I'm sure somebody will tell me it is just one of those "isolated incidents."

Says the homeowner whose driveway was blocked by the HOA as shown in the linked photo:

Car Stuck in Garage by HOA
"Hey all -

maybe someone can help me...

Can an HOA block my egress and ingress? They have placed three large stone pillars in front of our driveway, preventing us from leaving and my wife's car is in the garage. Her car has been stuck there for over four days so she can't work. We are beyond frustrated. The HOA president basically told us best of luck - see yea - your cable will be next to go.

We are paying our association dues - but can't keep up with all the new assessments and now with the 3k in their attorney fees we owe over 5k."

Read more: http://www.city-data.com/forum/atlanta/1298523-car-stuck-garage-hoa.html#ixzz1OjiKwZPs

----------------------
Why did this happen? What management company was this HOA using? Read on. He explains. If you look at page 3, entry number 23, of the city-data.com forum linked above, you will see that he says:

"We had an assessment done on our place last year for $1000 - I paid $500. I did not pay the other half. I Was 2 weeks late. They then doc'd me $800 in attorney fees. I called the management - Associa management and worked it out to pay an extra $100 a month until I could pay it off.

They then had another $1500 assessment done to rebuild the roofs. I could not keep up and feel behind - but made my payments plus $100 and I will continue to do so and try to make it more".

Read more: http://www.city-data.com/forum/atlanta/1298523-car-stuck-garage-hoa-3.html#ixzz1OjjXnUZ7

Dean Baker: "Dan Balz and the Washington Post STILL Don't Understand the Housing Bubble"

This is as clear an explanation of why housing prices collapsed, and why they will continue to fall for a while, as you will ever read.

Police shoot fake alligator

KANSAS CITY, Mo (Reuters Life!) – Police in a suburb in the state of Missouri recently encountered one tough alligator -- or so they thought.

Officers in Independence, a Kansas City suburb, responded to a call on a Saturday evening about a large alligator lurking on the embankment of a pond, police spokesman Tom Gentry said Thursday.

An officer called a state conservation agent, who advised him to shoot the alligator because there was little that conservation officials could do at that time, Gentry said.

As instructed an officer shot the alligator, not once but twice, but both times the bullets bounced off -- because the alligator was made of cement.
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Offending alligator? Don't call the cops -- call the HOA!

I'm sick of these MF snakes in this MF foreclosed home!

idaho-foreclosure-snake-home: Personal Finance News from Yahoo! Finance
Where's Samuel L. Jackson when you need him?

New York Co-op aims to combat obesity

Nice idea, but it won't be enough to combat the marketing of food and drink guaranteed to turn you into a waddling behemoth.

Newly amended bill would restrict library privatization

SACRAMENTO - Local governments would have to jump through multiple hoops before they could privatize local libraries under newly recrafted legislation moving through the Assembly.

The measure would require officials to provide detailed proof that contracting out would save money. It also would prohibit the layoffs of existing employees, among other rules.

The bill could have major implications for Riverside County. In 1997, the county became the first in the country to contract with a private company to provide library services.
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Privatizing local government services -- while controversial -- is one thing.  Privatizing local government itself in the form of mandated homeowner associations is quite another.

MTA Officers Detain Man For Taking Pictures « CBS Baltimore

MTA Officers Detain Man For Taking Pictures « CBS Baltimore: "The Patriot Act says that critical infrastructure, trains, train stations, all those things require certain oversight to take pictures, whether you say they are for personal use or whatever, that’s your story,” the officer said."
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And that was only a small part of the moronic harassment this man was subjected to by these Keystone Cops. They threatened to arrest him for absolutely no reason, among other things.

Bachus Comforts Wall Street While Assailing Dodd-Frank to Voters Back Home - Bloomberg

Bachus Comforts Wall Street While Assailing Dodd-Frank to Voters Back Home - Bloomberg
An absolutely astounding story of greed and stupidity. See Matt Taibbi's piece (below) for a more pointed version of events.

The Continual Screwing of Jefferson County, Alabama | Rolling Stone Politics | Taibblog | Matt Taibbi on Politics and the Economy

The Continual Screwing of Jefferson County, Alabama | Rolling Stone Politics | Taibblog | Matt Taibbi on Politics and the Economy
Read Matt Taibbi's scathing analysis of the massive political corruption surrounding the "screwing" of Jefferson County, Alabama, by elected officials, as described more moderately above.

Texas HOAs under heavy fire in Austin | wfaa.com Dallas - Fort Worth

Texas HOAs under heavy fire in Austin | wfaa.com Dallas - Fort Worth
"A wave of new laws were proposed, designed to restrict HOA powers that keep homeowners under financial duress and in the quicksand of debt.

State Sen. Royce West (D-Dallas) said what's happening to Greer is commonplace in Texas.

"You pay your legal fees, and other penalties and interest before the assessment is credited toward the assessment that you were supposed to have been paying in the first place," West said. "What that does is basically what it does to people in other areas — it puts them further and further behind."
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HOA threatens to sue Possum Kingdom wildfire survivor | wfaa.com Dallas - Fort Worth

HOA threatens to sue Possum Kingdom wildfire survivor | wfaa.com Dallas - Fort Worth
The recreational vehicle and camper he is living and working out of until his home can be rebuilt is violating Article 8, Section 3(e) of the Sportsman's World Property Owners Association covenant, according to a letter Brumbelow received from a Dallas law firm.

"If you do not move the vehicles immediately, the Association is expected to file suit," the letter reads, hitting him with attorneys fees and seeking injunctive relief.
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Another example of local democracy in action. Not.

Thanks to Rodney Gray for the link.

Foreclosure flood may not have crested yet - Business - Eye on the Economy - msnbc.com

Foreclosure flood may not have crested yet - Business - Eye on the Economy - msnbc.com
"If the national foreclosure crisis were a baseball game, we would be in about the top of the sixth. And we may have to go to extra innings."
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I'll bet he wonders why he doesn't get invited to more parties.

Calculated Risk: Real House Prices and Price-to-Rent: Back to 1999

Calculated Risk: Real House Prices and Price-to-Rent: Back to 1999
Take a look at this graph if you are not sufficiently depressed.

HOA threatens to sue wildfire survivor

The recreational vehicle and camper he is living and working out of until his home can be rebuilt is violating Article 8, Section 3(e) of the Sportsman's World Property Owners Association covenant, according to a letter Brumbelow received from a Dallas law firm.

"If you do not move the vehicles immediately, the Association is expected to file suit," the letter reads, hitting him with attorneys fees and seeking injunctive relief.

The Association is on record, however, saying it is "sorry that he lost his house."
----------------------------------------------
And no FEMA trailers allowed, either.

Survey Says?¡?! Owning a house is "Dumb" - Hit & Run : Reason Magazine

Survey Says?¡?! Owning a house is "Dumb" - Hit & Run : Reason Magazine
Interesting data. Makes one think...

The Next Foreclosure Fight

The Next Foreclosure Fight
Excellent news feature from CNBC on HOA foreclosures including CAI's Tom Skiba and attorney Bill Davis, who is the fellow being sued by John Carona's corporate entities (see below). Tom says HOA foreclosure should be used as a last resort, but that the power to foreclose is necessary to make sure the association is funded and the other owners don't have to pay their share. Bill says the purpose isn't to get money for the association but as an excuse to "shake down the homeowners for the benefit of the HOA vendors," mainly the lawyers and property managers.

Thanks to George Starapoli for the link.

A Needless Housing Collapse

A Needless Housing Collapse
"The success of a pioneering program for moderate-income buyers proves that the subprime disaster was not the fault of homeowners...The answer, quite simply, is that borrowers who had fixed-rate loans without hidden costs were far likelier to hold on to their homes. Subprime borrowers with adjustable-rate mortgages have cumulatively faced a "serious delinquency" rate approaching 40 percent, meaning that four out of 10 borrowers ended up at least three months late on their mortgages. From there, it's usually very hard for them to avoid foreclosure. By contrast, only 8.5 percent of Self-Help borrowers -- in the same cities and with the same financial profiles -- have fallen into such deep trouble, and fewer than 5 percent have ended up losing their homes to foreclosure."
--------------
The article is by Alyssa Katz, whose book Our Lot: How Real Estate Came to Own Us is the best thing I've read on the housing crisis. Here she talks about a program that shows how it was the terms of the mortgages that doomed so many people to foreclosure.

DA looks into Channelview complaints | Houston & Texas News | Chron.com - Houston Chronicle

DA looks into Channelview complaints | Houston & Texas News | Chron.com - Houston Chronicle
I don't know much about John Carona's businesses or how they conduct their affairs. Everything I have to say in this post is about Texas State Senator John Carona, human being. The man is a public figure who is actively making and influencing public policy in the area I have specialized in since 1985, and I have an obvious and legitimate reason to comment on his activities.

This article from the Houston Chronicle back in 2009 details some of the things that people were saying about Carona. I was quoted in the article on the general issue, although I was (and still am) unfamiliar with the details of these Texas incidents.

The picture that is shaping up is something like this. John Carona is a state senator who had a lot to say about the content of Texas laws on HOAs and the businesses that serve them. He is also a powerhouse in the property management field, being the principal in a complicated network of management firms in multiple states, that has expanded rapidly in recent years. These management firms are also connected with other businesses that serve HOA in other ways. As the article says,

"Carona, a five-term senator who chairs the Homeland Security and Transportation Committee, is Associa's founder, president and chief executive officer. He serves on the boards of dozens of other companies that provide banking, insurance, Web sites and other services to homeowners associations, according to his latest personal financial disclosure statements filed with the Texas Ethics Commission. Carona authored legislation in 2001 that preserved and modified homeowners associations' controversial authority to foreclose on homes based on delinquent assessments. He said he sees no conflict of interest in his involvement with legislation affecting the industry that provides much of his livelihood."

So--he is a public official, and he has a lucrative career. He has become a legislative specialist in the field where he has his business interests. These are all public facts and in and of themselves don't create any impropriety. The reporter raises the potential of a conflict of interest, and asked Carona about it, and he denies it. One can see how that could potentially happen with specific pieces of legislation, but no legislative-business conflict of interest is spelled out in the article as nearly as I can tell.

But here's the problem: when somebody, such as the homeowner/BOD member in this article, Sam Campbell, raises questions about the details of practices engaged in by Carona's firms, they get threatened by Carona's attorneys. Back to the 2009 article:

"In April, Campbell began sending information to the district attorney's office, which issued subpoenas for four Sterling Green South bank accounts. Assistant District Attorney Kelli Johnson said it will take months to analyze the records. Johnson declined to say whether the subpoenas were issued to PMG or to the banks. Carona said no one at his companies had received subpoenas related to Sterling Green South. Campbell also has sent numerous e-mail and written correspondence to PMG employees and attorneys detailing accusations that the company used Sterling Green South funds improperly. On July 31, PMG fired back. Benjamin D. Wood, a Washington, D.C., attorney representing the company, threatened to sue Campbell for defamation and business disparagement if he continues his campaign."


Now, I have no sympathy for people who maliciously libel people on the internet or anyplace else. People should be able to earn a living or serve in public office without having their character impugned. But where is the evidence that there was any defamation? It appears from the story that all Mr. Campbell did here was try to get to the bottom of some complicated transactions that he thought raised some questions about how his association's money was handled and spent. As a BOD member or even an ordinary HOA member, what is wrong with that? Isn't that an appropriate activity for somebody who has a fiduciary duty to the members? Nothing in that Houston Chronicle article looks like defamation to me. Why wouldn't Carona simply have his company or companies produce the records and explain the transactions?

And what about this new suit against Bill Davis? I have now read the petition that Carona's lawyers filed in the new case that led to the subpoena for my blog records. Again--where is the evidence of defamation? There is not one single specific act of defamation spelled out in the entire complaint. It just claims that between 2008 and 2010 Davis defamed Carona's companies (and Carona's name doesn't even appear in the entire complaint!) on "various news and information web sites," including the Dallas Morning News and city-data.com. The petition says that Davis claimed these firms "engaged in illegal behavior and unethical business practices," but there are no quotations of what was supposedly said. That's right: a defamation suit that fails even to quote a single allegedly defamatory statement...and that also fails to mention that the actual human being behind all the corporate plaintiff entities is a public figure. Why does that matter? Because in the USSC case of New York Times v. Sullivan, the court said that public officials and other public figures can't recover for libel unless they can prove "actual malice," which requires that the defendant either knew the statement was false or acted with reckless disregard for whether it was true or not. The petition pleads the elements of actual malice, but again--doesn't say what facts support the claim that Davis knew his unspecified statements were false.

I don't know Texas law, but here in Illinois I am confident that wouldn't be enough to state a valid claim.

Three questions for you:

1. Does the case against Bill Davis sound like a viable defamation suit to you? Where's the beef?

2. Is Carona using his lawyers to prevent people like Mr. Campbell and Mr. Davis from raising issues of public concern? Issues that relate directly to the very things he works on in his capacity as a legislator? If so, why is he doing that?

3. And isn't that a question that should be addressed to him, as a public official of the State of Texas, by the press?

Pending home sales plummet in April

Pending sales of previously owned homes took a tumble in April, according to data from an industry group, a foreboding sign that the key spring shopping season is off to a weak start.

The National Assn. of Realtors said Friday that its index for pending home sales, which is based on the number of contracts signed each month, fell 11.6% from March and was down 26.5% from the same month last year. The drop in the index was another indicator that buyers are scarce.

"Really the housing market is still in the doldrums," said Gerd-Ulf Krueger, principal economist at Housingecon.com. "I think what's really holding it back is an utter lack of confidence that this will turn around soon."
------------------------------------------------
April is traditionally considered a good month for home sales.

It's looking like the economy is once again in danger of falling into last year's late spring/start of summer doldrums when one also considers reports this week that GDP growth and consumer spending are trending well below expectations for the first quarter of this year. Note also the interest rate on 10-year T-notes. It's pushing downward and testing 3 percent -- a decidedly bearish indicator.

HOA reform group targets law that allows Texas associations to repossess homes over HOA rules | Texas Watchdog

HOA reform group targets law that allows Texas associations to repossess homes over HOA rules | Texas Watchdog
So here is what appears to be the explanation the lawsuit that produced the subpoena (see below), according to one source:
--------------------
"The HOA-reform groups continue to be irritated by the man who helped craft and pass some of those laws, state Sen. John Carona, who heads Associa, a national company that refers to itself in press releases as “the leader in community association management.”
It’s an old fight – at least since 2006 disgruntled homeowners have been angered by Carona’s influence and operations. Carona has recently fought back in a civil lawsuit filed in Hays County against Bill Davis, a Friendswood lawyer and advocate for HOA reform. Carona’s Associations Inc. also names “ICDELIGHT” as a defendant, referring to an online handle that Davis used in speaking out against HOAs and Carona, whom he has called a “shakedown artist” in interviews. Davis calls the action a “SLAPP suit” designed to intimidate him and his colleagues from speaking out against Carona."
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The term SLAPP suit means "Strategic Lawsuit Against Public Participation," used by corporations to intimidate critics.

I still don't get what this weblog has to do with the lawsuit. The fact that my weblog is targeted is ironic, given that from time to time I have warned anonymous commenters about the importance of avoiding defamatory remarks, and I delete them whenever I notice them. That's because I knew that sooner or later the community association industry would retaliate against its critics with this sort of lawsuit.

For what it's worth--my understanding of Google's policies is that they will divulge 6 months worth of IP addresses. Anything older than that is purged. You can read about those policies at this website, which goes to a firm that helps people sue for internet defamation.

Look what I just got in my in box...

Hello,

Google has received a subpoena for information related to your Google account in a case entitled Associations, Inc., d/b/a, Associa, Principal Management Group, Inc., and Alliance Association Management, Inc. v.
William Donald Davis, a/k/a ICdeLight a/k/a/ IC_deLight, District Court of Hays County, Texas, 22nd Judicial District, Case No. 10-2312 (Internal Ref. No. 139950).

To comply with the law, unless you provide us with a copy of a motion to quash the subpoena (or other formal objection filed in court) via email at google-legal-support@google.com by 5pm Pacific Time on June 16, 2011, Google may provide responsive documents on this date.

For more information about the subpoena, you may wish to contact the party seeking this information at:

Kelly P. Chen
Munck Carter, LLP
12770 Coit Rd Ste 600
Dallas, TX 75251
(972)628-3600

Google is not in a position to provide you with legal advice.

If you have other questions regarding the subpoena, we encourage you to contact your attorney.

Thank you,

Google Legal Support

-------------------
I don't know what information John Carona's lawyer (Kelly Chen) is trying to get. I have never met William Davis or John Carona. For those who aren't up on these things, Associa is a property management firm run by John Carona, the Texas legislator/property manager whose name keeps popping up in connection with foreclosures and legislation. I have emailed Carona's lawyer and google legal to find out what they want. If anybody knows, clue me in.

Sen. John Carona defends controversial HOA rule | wfaa.com Dallas - Fort Worth

Sen. John Carona defends controversial HOA rule | wfaa.com Dallas - Fort Worth
Interesting viewing, because you get to see Carona deny that his policy is to have the attorney fees paid first and the association get its money sixth, then when the reporter tries to show him his own company's documents stating that policy, Carona flees, and has the reporter thrown out.

Contingency fee construction defect lawsuit settlement comes up short

“The community is in a situation where they have less than enough money to do the repairs they need to make. So they need to do so as efficiently as possible,” said HOA Attorney Jerry Orton.

Orton said a third of the settlement went to lawyers from another firm that handled the case. Homeowners aren’t happy.
-----------------------------------------------------------
Thirty-three percent attorney contingency fee contracts may work well in personal injury cases, but can be disastrous in condo construction defect lawsuits. Condo complexes like this one face the prospect of falling into Tyler Berding's death spiral in future years.

I-TEAM: HOA foreclosures draw attention in Austin

“Property owners associations are there to preserve property value. In terms of whether the fees that we charge are large or not, they are reasonable for the kind of work that we do.”

But the payment plans these attorneys are using have captured the attention of Austin lawmakers.

HOA/homeowner relationships have spawned nearly 60 bills filed this session.

Janet Ahmad of the group Home Owners for Better Building said, “They have been gouging people, with all of these fees. They are losing their homes; they are pricing people out of the market.”

But Ahmad said no bills have made it through…and there are only two days left in the session.

---------------------------------------------------
The score at the top of the ninth: HOA bar, 60. Consumers, 0.

HOA shadenfreude

A study conducted by Nevada psychology professor Gary Solomon suggested that oversight over a homeowner’s living conditions creates a two-tailed psychiatric disorder called “HOA Syndrome.”

Talking about his experience inside an HOA in Las Vegas, Solomon said, “I learned that residents, primarily principal homeowners, were living in a war zone, not identifiable by bombs, guns and burning buildings. Rather, a war zone masterfully orchestrated by a few fellow homeowners attempting to control their companion neighbors while making a few bucks on the side and gaining sadistic pleasure from watching their neighbors live in pain.”

See the Berding and McKenzie discussion at ECHO on June 18!

Booth 319, Santa Clara Convention Center. And on Saturday, June 18, we have our public discussion about whether common interest housing can survive the challenges of the 21st century.

Be there!

Illinois legislature addresses foreclosure costs to cities

Springfield, Ill. —

Banks and lending institutions responsible for foreclosures in Illinois would pay for the maintenance of thousands of vacant houses, rather than putting that financial burden on municipalities statewide under a plan in the Illinois House.
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Good idea. Thanks to Fred Pilot for this link.

Why Does the NYT Want the Government to Make Housing Unaffordable? | Beat the Press

Why Does the NYT Want the Government to Make Housing Unaffordable? | Beat the Press
"Actually no; it never looked like "things were improving" to people who follow the housing market. It looked like the tax credits were temporarily delaying the deflation of the housing bubble. This delay allowed banks and investors to have hundreds of billions of dollars in mortgages, which would be underwater today, taken off their books and replaced by Fannie and Freddie guaranteed loans, through sales or refinancing."
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This blog post is by Dean Baker, who I think is a very bright guy with a record of accurate predictions. He seems to think that housing is still overpriced by historical measures.

HOA scuffle in the Senate | Trail Blazers Blog | dallasnews.com

HOA scuffle in the Senate | Trail Blazers Blog | dallasnews.com
Two republicans argue about who is more anti-homeowner. Thanks to Fred Pilot for the link.

Continued real estate deflation making foreclosures unappealing to HOAs

HOAs file foreclosure notices “fairly regularly, but in 99% of the cases, the property is worth less than the underlying debt. Just because you get a house for $6,000 doesn’t mean you get a bargain on the home,” says Kurt De Meire, CEO of countyrecordsresearch.com, a foreclosure processing company.

“This is why it’s rare that associations follow through with their own foreclosures,” he says. “They don’t want the burden of the senior debt.”
In fact, most associations don’t even bother starting the foreclosure process, he says. “It’s a waste of their money to pursue a property for unpaid dues.”

De Meire says sometimes homeowners associations foreclose, evict the residents, then decide not to keep the senior loan or loans current. But using a foreclosure notice as a tool to persuade a homeowner to pay fees or force them out, he says, costs HOAs “several thousand dollars.”
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As residential real estate prices continue to deflate, foreclosure becomes an increasingly impractical means to recoup delinquent HOA assessments -- at least from the perspective of this foreclosure processing company head.

Strategic defaults on mortgages - chicagotribune.com

Strategic defaults on mortgages - chicagotribune.com
"Strategic default — opting to walk away from a mortgage you can afford — isn't a new phenomenon in the housing crisis. But with home values continuing to decline, more owners are finding themselves in a position where they may see it as a savvy business decision to destroy their credit rather than wait years for prices to recover."
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This recovery is just storming along. I know--why don't we give more tax cuts to rich people?

Vegas HOA Charged With Discrimination - Las Vegas News Story - KVVU Las Vegas

Vegas HOA Charged With Discrimination - Las Vegas News Story - KVVU Las Vegas
"A Las Vegas homeowners association is accused of restricting its housing to residents older than 55, according to the U.S. Department of Housing and Urban Development.

The agency on Friday charged Lakeside Village Homeowners Association and its management company, Castle Management and Consulting, LLC, with discriminating against families with children through illegal age requirements."
-----------------------
Thanks to Rodney Gray for this pointer.

HOA Syndrome Is Real, Nevada Professor Claims - Phoenix News Story - KPHO Phoenix

HOA Syndrome Is Real, Nevada Professor Claims - Phoenix News Story - KPHO Phoenix
"What is the treatment for HOA Syndrome?

It's pretty simple, said Solomon. Just do what Lantry and his family did, move out and never move into an HOA neighborhood again.

"Why would I want another incompetent level of government standing in judgment of me?" said Lantry.

HOA Syndrome is not recognized as an anxiety disorder by the psychology community. However, Solomon said that it's only a matter of time."
---------------------------
Well, at least there is a treatment. Thanks to Fred Fischer for this link.

Arizona SWAT Team Shoots Latino Former Marine Dozens of Times - COLORLINES

Arizona SWAT Team Shoots Latino Former Marine Dozens of Times - COLORLINES
This is a very disturbing story. I am going to keep track of it and see if it is as bad as it looks from this initial report.

HOA Tries To Evict Woman Dying Of Cancer - Phoenix News Story - KPHO Phoenix

HOA Tries To Evict Woman Dying Of Cancer - Phoenix News Story - KPHO Phoenix
The Florence Gardens Mobile Home Association is trying to evict Carolyn and her husband because they don't meet the minimum age requirement.

It's a 55 and older community.

Carolyn is 51. Her husband 53.

"Where am I supposed to go?" said Silvia. "I have cancer. Where am I supposed to go? This is my home."
---------------
HOA attorney Charles Maxwell won't stand for having Carolyn stay in the subdivision. Claims its a covenant violation. Read the whole thing and see if you agree. Thanks to Fred Fischer for the link.

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."

Ron Paul: I Would Not Have Voted For The 1964 Civil Rights Act (VIDEO) | TPMDC

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

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.