Report: Countrywide won influence with discounts - Businessweek
WASHINGTON (AP) — The former Countrywide Financial Corp., whose subprime loans helped start the nation's foreclosure crisis, made hundreds of discount loans to buy influence with members of Congress, congressional staff, top government officials and executives of troubled mortgage giant Fannie Mae, according to a House report...Among those who received loan discounts from Countrywide, the report said, were:
-Former Senate Banking Committee Chairman Christopher Dodd, D-Conn.
-Senate Budget Committee Chairman Kent Conrad, D-N.D.
-Mary Jane Collipriest, who was communications director for former Sen. Robert Bennett, R-Utah, then a member of the Banking Committee. The report said Dodd referred Collipriest to Countrywide's VIP unit. Dodd, when commenting on his own loans, has said he was unaware of the discount program.
-Rep. Howard "Buck" McKeon, R-Calif., chairman of the House Armed Services Committee.
-Rep. Edolphus Towns, D-N.Y., former chairman of the Oversight Committee. Towns issued the first subpoena to Bank of America for Countrywide documents, and current Chairman Darrell Issa, R-Calif., subpoenaed more documents. The committee said that in responding to the Towns subpoena, Bank of America left out documents related to Towns' loan.
-Rep. Elton Gallegly, R-Calif.
-Top staff members of the House Financial Services Committee.
-A staff member of Rep. Ruben Hinojosa, D-Texas, a member of the Financial Services Committee.
-Former Rep. Tom Campbell, R-Calif.
-Former Housing and Urban Development Secretaries Alphonso Jackson and Henry Cisneros; and former Health and Human Services Secretary Donna Shalala. The VIP unit processed Cisneros' loan after he joined Fannie's board of directors.
-Rep. Pete Sessions, R-Texas, was an exception. He told the VIP unit not to give him a discount, and he did not receive one.
-Former Fannie Mae heads James Johnson, Daniel Mudd and Franklin Raines. Countrywide took a loss on Mudd's loan. Fannie employees were the most frequent recipients of VIP loans. Johnson received a discount after Mozilo waived problems with his credit rating.
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No comment. Res ipsa loquitur.
Thursday, July 05, 2012
Firing of Hallandale Beach lifeguard prompts outcry and review - South Florida Sun-Sentinel.com
Firing of Hallandale Beach lifeguard prompts outcry and review - South Florida Sun-Sentinel.com
Executives of an aquatics company will review whether the firm was justified in firing a Hallandale Beach lifeguard earlier this week for leaving his zone to help rescue a nearby swimmer. The dismissal prompted a media firestorm and an outpouring of public support for the guard, 21-year-old Tomas Lopez of Davie. Jeff Ellis Management, the Orlando-area company under contract with Hallandale Beach since 2003 to provide lifeguards at two public beaches, announced Wednesday that it would immediately interview the managers and workers involved in the incident to determine whether any safety protocols were violated...The city said it would await the results of the company's inquiry, which Ellis said should be complete by Friday. City spokesman Peter Dobens said the agreement for the protected areas of the beach calls for four lifeguards and one supervisor to be on duty simultaneously, per shift. "The city doesn't provide lifeguards in front of the condominiums up and down the beach," Dobens said. Emergency service personnel, however, respond whenever summoned.
--------------------
For those who still don't understand the difference between public provision of local services and privatization, read this. The City of Hallandale Beach has contracted out lifeguard services (or some contractually-defined simulacrum thereof) to Jeff Ellis Management. One of their lifeguards did CPR (or otherwise rendered aid) on a man who had already been pulled from the water by others after apparently getting in trouble outside the area that the contract covers. His company fired him. The city is mumbling PR nonsense about awaiting the results of the grand investigation by the company, which translates into "Wait and see how bad the media firestorm is and act accordingly." This young man knew what needed to be done and he did it, because he is a lifeguard. Unfortunately, he works for a private company instead of a government.
This underscores a very important point about privatization. Sometimes privatization works just fine in terms of cost-effectiveness. But some services should not be privatized at all, ever, because they require split-second decisions, dedication to the welfare of others, and tasks that can't be clearly specified in advance. It seems to me that most jobs that involve risking your own life to save the lives of others are in that category. There's no reason you need to have public employees on staff to paint city hall, because contracting it out is easy and will work just fine. But how about contracting out police services to a private security company? Maybe that's fine for checking IDs at the front gate of the condo development, but when it comes to serious police work, I want a dedicated public servant between me and the real bad guys. I'd say the same thing about lifeguards. These are people who might have to dive into a rip tide to pull a drowning swimmer ashore and keep him alive until the paramedics arrive. I don't want them to be reading the fine print in their contract before they decide what to do.
And of course there is a great irony here. The city's private contractor fired Lopez for rendering aid to somebody who was drowning at a private beach in front of a condominium project, where it was "swim at your own risk." Apparently the condo association didn't pay for its own private lifeguard services. If you want the services of a Jeff Ellis lifeguard, condo dwellers, you have to pay for them. Those are the rules in privatopia.
Executives of an aquatics company will review whether the firm was justified in firing a Hallandale Beach lifeguard earlier this week for leaving his zone to help rescue a nearby swimmer. The dismissal prompted a media firestorm and an outpouring of public support for the guard, 21-year-old Tomas Lopez of Davie. Jeff Ellis Management, the Orlando-area company under contract with Hallandale Beach since 2003 to provide lifeguards at two public beaches, announced Wednesday that it would immediately interview the managers and workers involved in the incident to determine whether any safety protocols were violated...The city said it would await the results of the company's inquiry, which Ellis said should be complete by Friday. City spokesman Peter Dobens said the agreement for the protected areas of the beach calls for four lifeguards and one supervisor to be on duty simultaneously, per shift. "The city doesn't provide lifeguards in front of the condominiums up and down the beach," Dobens said. Emergency service personnel, however, respond whenever summoned.
--------------------
For those who still don't understand the difference between public provision of local services and privatization, read this. The City of Hallandale Beach has contracted out lifeguard services (or some contractually-defined simulacrum thereof) to Jeff Ellis Management. One of their lifeguards did CPR (or otherwise rendered aid) on a man who had already been pulled from the water by others after apparently getting in trouble outside the area that the contract covers. His company fired him. The city is mumbling PR nonsense about awaiting the results of the grand investigation by the company, which translates into "Wait and see how bad the media firestorm is and act accordingly." This young man knew what needed to be done and he did it, because he is a lifeguard. Unfortunately, he works for a private company instead of a government.
This underscores a very important point about privatization. Sometimes privatization works just fine in terms of cost-effectiveness. But some services should not be privatized at all, ever, because they require split-second decisions, dedication to the welfare of others, and tasks that can't be clearly specified in advance. It seems to me that most jobs that involve risking your own life to save the lives of others are in that category. There's no reason you need to have public employees on staff to paint city hall, because contracting it out is easy and will work just fine. But how about contracting out police services to a private security company? Maybe that's fine for checking IDs at the front gate of the condo development, but when it comes to serious police work, I want a dedicated public servant between me and the real bad guys. I'd say the same thing about lifeguards. These are people who might have to dive into a rip tide to pull a drowning swimmer ashore and keep him alive until the paramedics arrive. I don't want them to be reading the fine print in their contract before they decide what to do.
And of course there is a great irony here. The city's private contractor fired Lopez for rendering aid to somebody who was drowning at a private beach in front of a condominium project, where it was "swim at your own risk." Apparently the condo association didn't pay for its own private lifeguard services. If you want the services of a Jeff Ellis lifeguard, condo dwellers, you have to pay for them. Those are the rules in privatopia.
States Steal Federal Foreclosure Funds at Their Own Peril - Bloomberg
States Steal Federal Foreclosure Funds at Their Own Peril - Bloomberg
The U.S. housing market is showing tentative signs of life as demand for new homes and housing prices begin to rise in some areas.
Yet pitfalls remain, including about 12 million borrowers who still owe more on their “underwater” mortgages than their homes are worth. To help some of those people, the recent $25 billion national mortgage settlement required five large banks to pay states $2.5 billion for foreclosure prevention and other housing-related efforts.
Here’s the problem: many states -- including some hardest hit by the housing bust -- are diverting more than $1 billion of that settlement money to fill budget gaps, fund public universities and even bankroll litigation against defective Chinese drywall, according to a Bloomberg Government report. In doing so, states are robbing troubled borrowers of assistance and jeopardizing their housing recoveries in the process.
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As this opinion piece observes, it is easy to understand why some states are doing this--they have huge budget imbalances that they have to fix. But the housing market is one of the mainsprings of the economy, and it needs to recover. Pilfering the mortgage settlement money is a short term strategy that retards the long term recovery.
The U.S. housing market is showing tentative signs of life as demand for new homes and housing prices begin to rise in some areas.
Yet pitfalls remain, including about 12 million borrowers who still owe more on their “underwater” mortgages than their homes are worth. To help some of those people, the recent $25 billion national mortgage settlement required five large banks to pay states $2.5 billion for foreclosure prevention and other housing-related efforts.
Here’s the problem: many states -- including some hardest hit by the housing bust -- are diverting more than $1 billion of that settlement money to fill budget gaps, fund public universities and even bankroll litigation against defective Chinese drywall, according to a Bloomberg Government report. In doing so, states are robbing troubled borrowers of assistance and jeopardizing their housing recoveries in the process.
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As this opinion piece observes, it is easy to understand why some states are doing this--they have huge budget imbalances that they have to fix. But the housing market is one of the mainsprings of the economy, and it needs to recover. Pilfering the mortgage settlement money is a short term strategy that retards the long term recovery.
Wednesday, July 04, 2012
Monroe Township ordinance to change homeowners association regulations | NJ.com
Monroe Township ordinance to change homeowners association regulations | NJ.com
MONROE TWP. — The township council will vote on amendments to an ordinance this month that will require new residential developments with more than 100 homes to create homeowners associations.
The zoning ordinance also requires developers of residential neighborhoods with less than 100 homes to post a basin maintenance fee to contribute toward the upkeep costs of the basins and open space when the land is turned over to the township, according to Dawn Farrell, Monroe’s administrative clerk.
The township must maintain open space and retention basin land in developments without associations. Already, the work in the 38 developments without the groups has become a burden on municipal resources, Farrell said.
A zoning law created a decade ago required all developments, regardless of the number of homes, to establish homeowners associations (HOAs).
“However, it has come to light that smaller developments may not be able to sustain a HOA,” Farrell said Wednesday.
-----------------------
And there you have two things of note. First, ten years ago, Monroe Twp., NJ, started requiring that all new residential developments have HOAs, no matter how small they were. I have been emphasizing this widespread policy for many years--it completely undercuts the bogus argument that CIDs are a response to consumer demand. They are a way for developers and cities to make money. Second, they have now figured out that small HOA-run developments are not sustainable. The fragility of small HOAs, and many large ones, is undeniable, but it pales in comparison to the fiscal nightmare that thousands of condominium associations are facing.
Update 7/5/12: I have permission to include some comments from the person who sent me this link:
"I was looking at an article that related to the recent free speech case when I came across this additional article from the same news source. Admittedly the article is about a year old, however, I think it shows several things of interest:
1) HOAs are being mandated by local government
2) HOAs are being mandated in order to relieve the local government from the costs of maintenance AND to create additional revenue in the form of ad valorem taxes since the property is owned by a corporation rather than by governmental entities. In other words, more support for the proposition that HOAs are imposed out of government mandate rather than some "choice" of the homeowners. So much for the claim that numerosity implies popularity. I always said that numerosity doesn't equate to popularity whether you are talking about cockroaches, epidemics, or HOAs.
3) Local government realizes that HOAs are often unsustainable
4) Most of the argument raised by local government is ridiculous. Academically why would it matter how many homes are in the subdivision when it comes to who should have responsibility for maintenance? Either the obligation to maintain is a local government responsibility or it is not. The people in these subdivisions are paying taxes too."
MONROE TWP. — The township council will vote on amendments to an ordinance this month that will require new residential developments with more than 100 homes to create homeowners associations.
The zoning ordinance also requires developers of residential neighborhoods with less than 100 homes to post a basin maintenance fee to contribute toward the upkeep costs of the basins and open space when the land is turned over to the township, according to Dawn Farrell, Monroe’s administrative clerk.
The township must maintain open space and retention basin land in developments without associations. Already, the work in the 38 developments without the groups has become a burden on municipal resources, Farrell said.
A zoning law created a decade ago required all developments, regardless of the number of homes, to establish homeowners associations (HOAs).
“However, it has come to light that smaller developments may not be able to sustain a HOA,” Farrell said Wednesday.
-----------------------
And there you have two things of note. First, ten years ago, Monroe Twp., NJ, started requiring that all new residential developments have HOAs, no matter how small they were. I have been emphasizing this widespread policy for many years--it completely undercuts the bogus argument that CIDs are a response to consumer demand. They are a way for developers and cities to make money. Second, they have now figured out that small HOA-run developments are not sustainable. The fragility of small HOAs, and many large ones, is undeniable, but it pales in comparison to the fiscal nightmare that thousands of condominium associations are facing.
Update 7/5/12: I have permission to include some comments from the person who sent me this link:
"I was looking at an article that related to the recent free speech case when I came across this additional article from the same news source. Admittedly the article is about a year old, however, I think it shows several things of interest:
1) HOAs are being mandated by local government
2) HOAs are being mandated in order to relieve the local government from the costs of maintenance AND to create additional revenue in the form of ad valorem taxes since the property is owned by a corporation rather than by governmental entities. In other words, more support for the proposition that HOAs are imposed out of government mandate rather than some "choice" of the homeowners. So much for the claim that numerosity implies popularity. I always said that numerosity doesn't equate to popularity whether you are talking about cockroaches, epidemics, or HOAs.
3) Local government realizes that HOAs are often unsustainable
4) Most of the argument raised by local government is ridiculous. Academically why would it matter how many homes are in the subdivision when it comes to who should have responsibility for maintenance? Either the obligation to maintain is a local government responsibility or it is not. The people in these subdivisions are paying taxes too."
Tuesday, July 03, 2012
California Passes Significant Protections Against Illegal Foreclosure Processes | FDL News Desk
California Passes Significant Protections Against Illegal Foreclosure Processes | FDL News Desk
"Pressured by a coalition of activists and state Attorney General Kamala Harris, the California legislature completed a months-long project yesterday to significantly improve its foreclosure process. The measure gives homeowners a new right to sue over fraudulent practices, ends dual tracking – where servicers process foreclosures while negotiating loan modifications – and extends a single point of contact at all borrowers. The state Assembly passed the companion bills by 53-25, with the Senate passing by 25-13."
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This is the most aggressive mortgage foreclosure reform bill so far. I think I have the right one here--A. B. 278..
See more detail on this at the Center for Responsible Lending.
"Pressured by a coalition of activists and state Attorney General Kamala Harris, the California legislature completed a months-long project yesterday to significantly improve its foreclosure process. The measure gives homeowners a new right to sue over fraudulent practices, ends dual tracking – where servicers process foreclosures while negotiating loan modifications – and extends a single point of contact at all borrowers. The state Assembly passed the companion bills by 53-25, with the Senate passing by 25-13."
--------------------
This is the most aggressive mortgage foreclosure reform bill so far. I think I have the right one here--A. B. 278..
See more detail on this at the Center for Responsible Lending.
Monday, July 02, 2012
Homeowner threatened after HOA Hall of Shame report - www.ktnv.com
Homeowner threatened after HOA Hall of Shame report - www.ktnv.com
""We got our first letter from the HOA about two days after we purchased the house," Steve says.
What started out as a series of notices of violation for -- among other things -- the particular shade of white that Steve and Jen chose to paint their garage door and their front door has escalated into threats of violence.
In fact, it's gotten to the point where they've had to install security cameras at their own front door.
It all follows a Contact 13 HOA Hall of Shame report in May on Appaloosa Canyon."
---------------------------
Thanks to Rodney Gray for the link.
""We got our first letter from the HOA about two days after we purchased the house," Steve says.
What started out as a series of notices of violation for -- among other things -- the particular shade of white that Steve and Jen chose to paint their garage door and their front door has escalated into threats of violence.
In fact, it's gotten to the point where they've had to install security cameras at their own front door.
It all follows a Contact 13 HOA Hall of Shame report in May on Appaloosa Canyon."
---------------------------
Thanks to Rodney Gray for the link.
Probation Fees Multiply as Companies Profit - NYTimes.com
Probation Fees Multiply as Companies Profit - NYTimes.com
"'With so many towns economically strapped, there is growing pressure on the courts to bring in money rather than mete out justice,” said Lisa W. Borden, a partner in Baker, Donelson, Bearman, Caldwell & Berkowitz, a large law firm in Birmingham, Ala., who has spent a great deal of time on the issue. “The companies they hire are aggressive. Those arrested are not told about the right to counsel or asked whether they are indigent or offered an alternative to fines and jail. There are real constitutional issues at stake.'"
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Good article exposing the way privatization arrangements with "private probation companies" are being implemented in ways that soak people for huge fines and even jail--the modern equivalent of debtors' prison.
"'With so many towns economically strapped, there is growing pressure on the courts to bring in money rather than mete out justice,” said Lisa W. Borden, a partner in Baker, Donelson, Bearman, Caldwell & Berkowitz, a large law firm in Birmingham, Ala., who has spent a great deal of time on the issue. “The companies they hire are aggressive. Those arrested are not told about the right to counsel or asked whether they are indigent or offered an alternative to fines and jail. There are real constitutional issues at stake.'"
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Good article exposing the way privatization arrangements with "private probation companies" are being implemented in ways that soak people for huge fines and even jail--the modern equivalent of debtors' prison.
"Occupy" your own home: A victory for free speech in New Jersey | NJ.com
"Occupy" your own home: A victory for free speech in New Jersey | NJ.com
"Of the 314,000 such communities in the United States, the overwhelming majority have restrictive covenants in their master deeds that sharply limit the free speech rights of residents in ways which no public government could. For example, unless you live in California, which has a state statute providing otherwise, you are almost certainly prohibited from placing a political sign in the window of your home, just as were the citizens of Ladue until the Supreme Court ruled otherwise.
Now, the New Jersey Supreme Court has stepped in to provide some relief, at least for residents of this state — and maybe offer the road to reform in other states, as well.
In a case involving the Mazdabrook Commons community in Parsippany, the state’s high court ruled that such a prohibition on political signs in a homeowner’s window violated the state constitution."
-----------------------
This is a great op-ed by Frank Askin of Rutgers Law School, who successfully challenged the actions of Mazdabrook Commons before the New Jersey Supreme Court.
"Of the 314,000 such communities in the United States, the overwhelming majority have restrictive covenants in their master deeds that sharply limit the free speech rights of residents in ways which no public government could. For example, unless you live in California, which has a state statute providing otherwise, you are almost certainly prohibited from placing a political sign in the window of your home, just as were the citizens of Ladue until the Supreme Court ruled otherwise.
Now, the New Jersey Supreme Court has stepped in to provide some relief, at least for residents of this state — and maybe offer the road to reform in other states, as well.
In a case involving the Mazdabrook Commons community in Parsippany, the state’s high court ruled that such a prohibition on political signs in a homeowner’s window violated the state constitution."
-----------------------
This is a great op-ed by Frank Askin of Rutgers Law School, who successfully challenged the actions of Mazdabrook Commons before the New Jersey Supreme Court.
These Condo-Owners Had Their Properties Stolen By Local Developers - Business Insider
These Condo-Owners Had Their Properties Stolen By Local Developers - Business Insider
"By buying the 89 percent of the units at the foreclosure sale last year, [Timochenko] acquired all of the units and all of the votes he needed to approve a termination," explains Tom Beaver, an attorney whom some of the unit owners turned to for help.
Here's the rub: Under Section 3220 of the Pennsylvania Uniform Condominium Act, when a condominium is dissolved, the condo association can put the entire condominium up for sale, regardless of who owns the individual units. So in acquiring control of the condo association, Water Polo I also gained the right to sell Fusco's home.
------------------
Here is a detailed explanation of the Deep Path condominium situation that I posted on below, noting that there had to be more to the story, and there is. You can read the statute at the link. Pennsylvania is one of the thirteen states that have adopted the Uniform Condominium Act of 1980. Section 2-118 of that Act is now Section 3220 of the Pennsylvania Uniform Condominium Act. Section 3220 is the code section that Timochenko used to accomplish this.
update: in answer to a question posed in a comment, here is the full list of states that adopted the Uniform Condominium Act of 1980:
"By buying the 89 percent of the units at the foreclosure sale last year, [Timochenko] acquired all of the units and all of the votes he needed to approve a termination," explains Tom Beaver, an attorney whom some of the unit owners turned to for help.
Here's the rub: Under Section 3220 of the Pennsylvania Uniform Condominium Act, when a condominium is dissolved, the condo association can put the entire condominium up for sale, regardless of who owns the individual units. So in acquiring control of the condo association, Water Polo I also gained the right to sell Fusco's home.
------------------
Here is a detailed explanation of the Deep Path condominium situation that I posted on below, noting that there had to be more to the story, and there is. You can read the statute at the link. Pennsylvania is one of the thirteen states that have adopted the Uniform Condominium Act of 1980. Section 2-118 of that Act is now Section 3220 of the Pennsylvania Uniform Condominium Act. Section 3220 is the code section that Timochenko used to accomplish this.
update: in answer to a question posed in a comment, here is the full list of states that adopted the Uniform Condominium Act of 1980:
| Act | Condominium Act |
| Origin | Completed by the Uniform Law Commissioners in 1977, and amended in 1980. |
| Description | UCA contains comprehensive provisions for creation, management, and termination of condominium associations, including point-of-sale consumer protection. |
| Endorsements |
American Bar Association
|
| Enactments | Alabama, Kentucky, Maine, Minnesota, Missouri, Nebraska, New Mexico, Pennsylvania, Rhode Island, Texas, Virginia, Washington, West Virginia |
| 2012 Introductions | |
| Staff Liason(s) | Kieran Marion |
Sunday, July 01, 2012
South Floridians turn to roommates to help them pay bills - South Florida Sun-Sentinel.com
South Floridians turn to roommates to help them pay bills - South Florida Sun-Sentinel.com: "It's definitely on the uptick," agreed Dan Ross, owner of the national RoommateExpress website that has noticed South Florida becoming one of the top areas in the nation for homeowners renting out rooms. The other hot spots for roommates — the Phoenix, Las Vegas and Tampa-St. Petersburg metro areas — also are having to dig themselves out of a housing bust that left thousands scrambling to find a new place to live or else find new income to keep their homes from being foreclosed, he said.
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Notice these hot spots for taking on roomers are the heart of Privatopia.
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Notice these hot spots for taking on roomers are the heart of Privatopia.
Saturday, June 30, 2012
Miami-Dade property values rise for first time in four years - Miami-Dade - MiamiHerald.com
Miami-Dade property values rise for first time in four years - Miami-Dade - MiamiHerald.com
In a small conference room just outside County Hall’s commission chambers, Property Appraiser Pedro J. Garcia explained how county real-estate values rose almost 2 percent, to $190.7 billion, from a year ago, the first year-over-year increase since the real estate market slide began in 2007 – and a slight increase over his earlier estimate in late May.
“What we are seeing is a recovery period for Miami-Dade County,” Garcia said.
----------------------
Nice to see some good news for a change.
In a small conference room just outside County Hall’s commission chambers, Property Appraiser Pedro J. Garcia explained how county real-estate values rose almost 2 percent, to $190.7 billion, from a year ago, the first year-over-year increase since the real estate market slide began in 2007 – and a slight increase over his earlier estimate in late May.
“What we are seeing is a recovery period for Miami-Dade County,” Garcia said.
----------------------
Nice to see some good news for a change.
Thursday, June 28, 2012
The Consumerist » Condos Sold Without Owners’ Permission For 1/3 Their Value
The Consumerist » Condos Sold Without Owners’ Permission For 1/3 Their Value
"Imagine that you've recently purchased a condo for $100,000. The complex where it's located is about 90% rented, and 10% owner-occupied. The complex's owner struggles, and the whole neighborhood goes up for sale in a foreclosure auction. The new owners dissolve the condo association, since they own all of the rentals, or 90% of the homes in the complex. This gives the owners permission to sell the entire complex at once, including what used to be condos. Your proceeds from having your home sold out from under you: $33,000. You still owe the rest of your mortgage, but have nowhere to live. Condo owners in Reading, Pennsylvania experienced this nightmare recently, and there is no legal way out for them."
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Wow. That's bizarre. I think there are some missing pieces in this story. If a condo association is dissolved it would create a tenancy in common. I'm trying to figure out how owners of 90% of the interests in a tenancy in common can sell 100% of the property. Thanks to Mystery Reader for the pointer.
"Imagine that you've recently purchased a condo for $100,000. The complex where it's located is about 90% rented, and 10% owner-occupied. The complex's owner struggles, and the whole neighborhood goes up for sale in a foreclosure auction. The new owners dissolve the condo association, since they own all of the rentals, or 90% of the homes in the complex. This gives the owners permission to sell the entire complex at once, including what used to be condos. Your proceeds from having your home sold out from under you: $33,000. You still owe the rest of your mortgage, but have nowhere to live. Condo owners in Reading, Pennsylvania experienced this nightmare recently, and there is no legal way out for them."
------------------
Wow. That's bizarre. I think there are some missing pieces in this story. If a condo association is dissolved it would create a tenancy in common. I'm trying to figure out how owners of 90% of the interests in a tenancy in common can sell 100% of the property. Thanks to Mystery Reader for the pointer.
Wednesday, June 27, 2012
Reliant Energy shuts off neighborhood's power, claims HOA not paying bills | abc13.com
Reliant Energy shuts off neighborhood's power, claims HOA not paying bills | abc13.com:
The Kleinbrook HOA, residents say, is not really an association of homeowners since the HOA is still run by the developer of the neighborhood, Mint Homes. HOA president Mark Falkenstein has not returned our calls or those of residents. "Since 2004, we've never had an accounting of what the expenses and money goes for," Cole said.
"I would like to know what they are doing with that money, because that's my portion and I know a lot of other homeowners have paid theirs. So where is the money going? What are they doing with it?" resident Amy Smith said.
Residents say they're now considering legal action against the HOA and might try to dissolve it.
---------------
More trouble in Privatopia. Film at 10.
The Kleinbrook HOA, residents say, is not really an association of homeowners since the HOA is still run by the developer of the neighborhood, Mint Homes. HOA president Mark Falkenstein has not returned our calls or those of residents. "Since 2004, we've never had an accounting of what the expenses and money goes for," Cole said.
"I would like to know what they are doing with that money, because that's my portion and I know a lot of other homeowners have paid theirs. So where is the money going? What are they doing with it?" resident Amy Smith said.
Residents say they're now considering legal action against the HOA and might try to dissolve it.
---------------
More trouble in Privatopia. Film at 10.
Tuesday, June 26, 2012
Righthaven receiver moves to fire CEO Steven Gibson - VEGAS INC
Righthaven receiver moves to fire CEO Steven Gibson - VEGAS INC
"The receiver, Lake Tahoe-area attorney Lara Pearson, filed papers in federal court in Las Vegas saying Gibson has been taking actions to harm the company, that she is terminating him and that she plans to have Righthaven sue him for malpractice."
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You may recall that Righthaven is or was a copyright troll outfit that was suing bloggers for posting articles from the Las Vegas Review-Journal and the Denver Post. This article says they filed 275 lawsuits based on assignment of the newspapers' rights. The whole shabby plan crashed and burned when federal courts ruled that Righthaven didn't have standing to sue, and/or that the defendants were protected by the "fair use" doctrine. The company ended up owing $318,000 in attorney fees to the defendants, didn't pay, and had its assets seized and turned over to a receiver. Now the receiver is fed up with Righthaven's post-judgment antics, including a possible appeal, and wants to get the creditors paid before all the assets are dissipated.
"The receiver, Lake Tahoe-area attorney Lara Pearson, filed papers in federal court in Las Vegas saying Gibson has been taking actions to harm the company, that she is terminating him and that she plans to have Righthaven sue him for malpractice."
----------
You may recall that Righthaven is or was a copyright troll outfit that was suing bloggers for posting articles from the Las Vegas Review-Journal and the Denver Post. This article says they filed 275 lawsuits based on assignment of the newspapers' rights. The whole shabby plan crashed and burned when federal courts ruled that Righthaven didn't have standing to sue, and/or that the defendants were protected by the "fair use" doctrine. The company ended up owing $318,000 in attorney fees to the defendants, didn't pay, and had its assets seized and turned over to a receiver. Now the receiver is fed up with Righthaven's post-judgment antics, including a possible appeal, and wants to get the creditors paid before all the assets are dissipated.
Monday, June 25, 2012
MissileBases.com
Missile Bases : not just for missiles anymore!
"Thank you for your interest in the unique underground structures we offer for sale. These historic cold war structures were each built at the cost of millions of taxpayer dollars. These earth-contact hardened nuclear-proof structures are some of the strongest construction ever built on the planet. No cost was spared. They are the 20th Century’s counterpart of the fortified castles of past centuries. They bring new meaning to the word "shelter". Centuries from now they will remain."
"Thank you for your interest in the unique underground structures we offer for sale. These historic cold war structures were each built at the cost of millions of taxpayer dollars. These earth-contact hardened nuclear-proof structures are some of the strongest construction ever built on the planet. No cost was spared. They are the 20th Century’s counterpart of the fortified castles of past centuries. They bring new meaning to the word "shelter". Centuries from now they will remain."
Vivos Underground Shelter Network - YouTube
Vivos Underground Shelter Network - YouTube
This is even better than an above-ground gated community. But these people haven't read The Masque of the Red Death.
This is even better than an above-ground gated community. But these people haven't read The Masque of the Red Death.
Outsourcing Sandy Springs - Video Library - The New York Times
Outsourcing Sandy Springs - Video Library - The New York Times
This is the video version of the piece I linked to below. I am in it.
This is the video version of the piece I linked to below. I am in it.
Sunday, June 24, 2012
A Georgia Town Takes the People’s Business Private - NYTimes.com
A Georgia Town Takes the People’s Business Private - NYTimes.com
"The prospect of more Sandy Springs-style incorporations concerns people like Evan McKenzie, author of “Privatopia: Homeowner Associations and the Rise of Residential Private Government.” He worries that rich enclaves may decide to become gated communities writ large, walling themselves off from areas that are economically distressed."
"The prospect of more Sandy Springs-style incorporations concerns people like Evan McKenzie, author of “Privatopia: Homeowner Associations and the Rise of Residential Private Government.” He worries that rich enclaves may decide to become gated communities writ large, walling themselves off from areas that are economically distressed."
Saturday, June 23, 2012
Michigan county cracks down on unlicensed dogs
News from The Associated Press: FLINT, Mich. (AP) -- Hey, was that a bark?
With 18 full-time enforcers, a Michigan county is going door-to-door to find dogs that don't have a license, an effort that could raise more than $250,000 in fees this summer.
More than 1,700 dog owners in Genesee County bought licenses during a two-week amnesty when delinquent fees were waived. Now the campaign is getting serious with workers prepared to sell licenses on the spot or write tickets in the county 50 miles north of Detroit.
------------
Local governments are really scraping to bring in every dime of potential revenue.
With 18 full-time enforcers, a Michigan county is going door-to-door to find dogs that don't have a license, an effort that could raise more than $250,000 in fees this summer.
More than 1,700 dog owners in Genesee County bought licenses during a two-week amnesty when delinquent fees were waived. Now the campaign is getting serious with workers prepared to sell licenses on the spot or write tickets in the county 50 miles north of Detroit.
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Local governments are really scraping to bring in every dime of potential revenue.
Prisons, Privatization, Patronage - NYTimes.com
Prisons, Privatization, Patronage - NYTimes.com: So what’s really behind the drive to privatize prisons, and just about everything else?
One answer is that privatization can serve as a stealth form of government borrowing, in which governments avoid recording upfront expenses (or even raise money by selling existing facilities) while raising their long-run costs in ways taxpayers can’t see. We hear a lot about the hidden debts that states have incurred in the form of pension liabilities; we don’t hear much about the hidden debts now being accumulated in the form of long-term contracts with private companies hired to operate prisons, schools and more.
Another answer is that privatization is a way of getting rid of public employees, who do have a habit of unionizing and tend to lean Democratic in any case.
But the main answer, surely, is to follow the money. Never mind what privatization does or doesn’t do to state budgets; think instead of what it does for both the campaign coffers and the personal finances of politicians and their friends. As more and more government functions get privatized, states become pay-to-play paradises, in which both political contributions and contracts for friends and relatives become a quid pro quo for getting government business.
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Opponents of Privatopia who for years have been complaining the common interest development/community association industrial complex has taken over their neighborhoods, statehouses and city halls are likely nodding their heads in agreement.
One answer is that privatization can serve as a stealth form of government borrowing, in which governments avoid recording upfront expenses (or even raise money by selling existing facilities) while raising their long-run costs in ways taxpayers can’t see. We hear a lot about the hidden debts that states have incurred in the form of pension liabilities; we don’t hear much about the hidden debts now being accumulated in the form of long-term contracts with private companies hired to operate prisons, schools and more.
Another answer is that privatization is a way of getting rid of public employees, who do have a habit of unionizing and tend to lean Democratic in any case.
But the main answer, surely, is to follow the money. Never mind what privatization does or doesn’t do to state budgets; think instead of what it does for both the campaign coffers and the personal finances of politicians and their friends. As more and more government functions get privatized, states become pay-to-play paradises, in which both political contributions and contracts for friends and relatives become a quid pro quo for getting government business.
--------------
Opponents of Privatopia who for years have been complaining the common interest development/community association industrial complex has taken over their neighborhoods, statehouses and city halls are likely nodding their heads in agreement.
Friday, June 22, 2012
Financially-strapped Nevada city declared disaster - Yahoo! News
Financially-strapped Nevada city declared disaster - Yahoo! News: After five years of declining property taxes, massive layoffs and questionable spending, leaders of the blue-collar, family-oriented city outside Las Vegas declared a state of emergency, invoking a rarely used state law crafted for unforeseen disasters.
No matter that the statute, which allows municipalities to suspend union contracts and avoid paying scheduled salary increases, doesn't actually include fiscal emergencies among the list of potential disasters.
"It says, in case of 'emergency such as.' You can't list how many different types of emergencies there are in the world," City Council member Wade Wagner said of the move, which will save the city $9 million.
There are many cities across the nation grappling with declining property values and growing expenses like North Las Vegas, but few, if any, have declared financial emergency.
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Apparently not even privatizing infrastructure and governance here in the heart of Privatopia was enough to make things pencil out.
No matter that the statute, which allows municipalities to suspend union contracts and avoid paying scheduled salary increases, doesn't actually include fiscal emergencies among the list of potential disasters.
"It says, in case of 'emergency such as.' You can't list how many different types of emergencies there are in the world," City Council member Wade Wagner said of the move, which will save the city $9 million.
There are many cities across the nation grappling with declining property values and growing expenses like North Las Vegas, but few, if any, have declared financial emergency.
--------------
Apparently not even privatizing infrastructure and governance here in the heart of Privatopia was enough to make things pencil out.
Hacking into Gated Communities
Hacking into Gated Communities
In which somebody explains how to do that.
In which somebody explains how to do that.
Wednesday, June 20, 2012
Inside USA - Privatised cities - 17 Oct 08 - Part 1 - YouTube
Inside USA - Privatised cities - 17 Oct 08 - Part 1 - YouTube
This is a documentary about Sandy Springs, Georgia, an affluent suburb of Atlanta that incorporated itself as a municipality so the folks in their $350,000 homes wouldn't have to share their precious tax dollars with poor people. They contracted with mega-engineering firm CH2M Hill to provide all municipal services except police and fire for $25 or $30 million, making them basically a fully privatized city. The core of the whole thing, of course, is the CID housing in which these folks live. I guess if we need examples of privatopia, this place will do. There are four more "cities" like it nearby. I understand Sandy Springs got a better deal recently than CH2M Hill was giving them.
This is a documentary about Sandy Springs, Georgia, an affluent suburb of Atlanta that incorporated itself as a municipality so the folks in their $350,000 homes wouldn't have to share their precious tax dollars with poor people. They contracted with mega-engineering firm CH2M Hill to provide all municipal services except police and fire for $25 or $30 million, making them basically a fully privatized city. The core of the whole thing, of course, is the CID housing in which these folks live. I guess if we need examples of privatopia, this place will do. There are four more "cities" like it nearby. I understand Sandy Springs got a better deal recently than CH2M Hill was giving them.
Tuesday, June 19, 2012
Thief drains Cedar Lake HOA accounts
Thief drains Cedar Lake HOA accounts:
Stuart Cohen, a Portland-based attorney
representing Cedar Lake and some of the other victims, said he’s been
told that the suspect stole the money to fund a sister company in Palm
Springs, Calif., called Pacific Empire Community Management.
He estimates that 900 homeowners have lost money.
It is unclear whether the theft is covered by
Northwest Empire Community Management’s various insurance policies,
including one for “employee dishonesty.” Watson also hopes the Cedar
Lake Homeowners Association’s insurance covers some of the losses.
Colo. Neighborhood May Ban Sidewalk Chalk Art | KREX - News, Weather, Sports for Grand Junction | Montrose | Glenwood Springs - Coverage You Can Count On | Around the Region
Colo. Neighborhood May Ban Sidewalk Chalk Art | KREX - News, Weather, Sports for Grand Junction | Montrose | Glenwood Springs - Coverage You Can Count On | Around the Region
Everyone knows chalky sidewalks depress property values. Thanks to Bill Davis for this item.
Everyone knows chalky sidewalks depress property values. Thanks to Bill Davis for this item.
Saturday, June 16, 2012
Greenacres man, 80, ends up in jail, hospital after trying to save butterfly plants
Greenacres man, 80, ends up in jail, hospital after trying to save butterfly plants: The landscaping dispute came to a head Tuesday morning when workers arrived to remove the plants. John Buchholz, a retired Pratt &Whitney machinist, stood his ground.
“This is where you stop,” Buchholz told the workers armed with shovels when they approached the blue porterweed, corn plants, coontie, firebush and others.
That’s when property managers called police.
When police officers arrived, he continued to protest. According to Greenacres police, Buchholz screamed and yelled at the workers and prevented them from removing the plants.
During the confrontation, Pat Buchholz read passages from Earth Blessings, Prayers for Our Planet, a pamphlet from the Unity in the Pines church.
John Buchholz, 80, compared himself to Rosa Parks taking a stand for what is right. Then he cracked a joke. He told police they might want to call for backup because he had been trained in karate. They called for backup.
Buchholz was placed in handcuffs, charged with disorderly conduct and resisting arrest without violence. He’s scheduled to make a first appearance in court June 26.
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Zee plants haf to go. Komply or cooler!
“This is where you stop,” Buchholz told the workers armed with shovels when they approached the blue porterweed, corn plants, coontie, firebush and others.
That’s when property managers called police.
When police officers arrived, he continued to protest. According to Greenacres police, Buchholz screamed and yelled at the workers and prevented them from removing the plants.
During the confrontation, Pat Buchholz read passages from Earth Blessings, Prayers for Our Planet, a pamphlet from the Unity in the Pines church.
John Buchholz, 80, compared himself to Rosa Parks taking a stand for what is right. Then he cracked a joke. He told police they might want to call for backup because he had been trained in karate. They called for backup.
Buchholz was placed in handcuffs, charged with disorderly conduct and resisting arrest without violence. He’s scheduled to make a first appearance in court June 26.
------------------
Zee plants haf to go. Komply or cooler!
Will there be enough water for both Vegas casinos and Privatopia?
Perilous new Vegas water pipeline claims a life - BusinessWeek: Ninety percent of Las Vegas water currently comes from Lake Mead, which has shrunk in recent years due to ongoing drought and increasing demand from seven states and more than 25 million people sharing Colorado River water rights under agreements dating to 1922.
The water authority is aggressively working on other ways to ensure a future water supply for Las Vegas' nearly 2 million residents and more than 40 million annual visitors. One is a controversial plan to build a $3.5 billion, 300-mile surface pipeline to pump billions of gallons of water south to Las Vegas from rural areas along the Nevada-Utah border.
In a city that averages just over four inches of rain per year, officials say they have no choice but to press on with the Lake Mead project. It promises to ensure the ability to fetch water no matter how low the reservoir gets.
----------------
Looking forward, will Las Vegas have enough water to serve its casinos, fountains and golf courses that form the bedrock of its tourism-based economy as well as massive common interest developments built during the housing boom?
The water authority is aggressively working on other ways to ensure a future water supply for Las Vegas' nearly 2 million residents and more than 40 million annual visitors. One is a controversial plan to build a $3.5 billion, 300-mile surface pipeline to pump billions of gallons of water south to Las Vegas from rural areas along the Nevada-Utah border.
In a city that averages just over four inches of rain per year, officials say they have no choice but to press on with the Lake Mead project. It promises to ensure the ability to fetch water no matter how low the reservoir gets.
----------------
Looking forward, will Las Vegas have enough water to serve its casinos, fountains and golf courses that form the bedrock of its tourism-based economy as well as massive common interest developments built during the housing boom?
4 more HOAs sued over collection costs deemed improper - VEGAS INC
4 more HOAs sued over collection costs deemed improper - VEGAS INC: Those attorneys regularly sue HOAs over what they call unauthorized collection costs and other charges included in liens that HOAs file against properties whose owners are delinquent on assessments and that ultimately are foreclosed on.
State law says HOAs can file ''Super Priority Liens'' that are ahead of mortgage liens, meaning the HOA lien amounts have to be paid for the buyer of a foreclosed property to obtain clear title.
Adams and Premsrirut insist these Super Priority Liens are limited under state law to six or nine months of assessments, depending on the circumstances.
State law says HOAs can file ''Super Priority Liens'' that are ahead of mortgage liens, meaning the HOA lien amounts have to be paid for the buyer of a foreclosed property to obtain clear title.
Adams and Premsrirut insist these Super Priority Liens are limited under state law to six or nine months of assessments, depending on the circumstances.
Thursday, June 14, 2012
Mazdabrook Commons HOA v. Khan
Folks--This is a major ruling that establishes free speech rights for owners in New Jersey under their state constitution. CAI fought on behalf of the association and lost. And the court explicitly rejected the argument made by the HOA that Khan waived his constitutional rights by the act of voluntarily purchasing a unit. Anybody who wants a copy of this opinion can get it from my law wiki at this address:
N.J. Supreme Court: Homeowners group can't order resident to remove political signs | NJ.com
N.J. Supreme Court: Homeowners group can't order resident to remove political signs | NJ.com: PARSIPPANY —Wasim Khan, a frequent Democratic candidate in Republican Morris County, hasn’t won any elections, but Wednesday he scored a big victory in the state Supreme Court.
The court ruled 5-1 that the homeowners’ association at his Parsippany townhouse complex violated his free-speech rights when it ordered him to remove campaign signs from his window and door during his run for township council in 2005.
"It’s a great victory for free speech," Khan said. "I’m so proud of our Supreme Court and our state. It’s incredible."
The court ruled 5-1 that the homeowners’ association at his Parsippany townhouse complex violated his free-speech rights when it ordered him to remove campaign signs from his window and door during his run for township council in 2005.
"It’s a great victory for free speech," Khan said. "I’m so proud of our Supreme Court and our state. It’s incredible."
Foreclosures up for first time in 27 months - Yahoo! News
Foreclosures up for first time in 27 months - Yahoo! News
NEW YORK (Reuters) - Foreclosure starts rose year-over-year in May for the first time in more than two years as banks resumed dealing with distressed properties after a mortgage abuse settlement earlier this year, data firm RealtyTrac said on Thursday.
The $25 billion settlement between major banks and states, formally approved in April, had been expected to jump-start foreclosure proceedings that were previously stalled by uncertainty about the liability of banks.
Overall foreclosure activity, which includes default notices, scheduled auctions and bank repossessions, affected 205,990 properties in May, a 9.1 percent increase from April.
-----------------------
Happy days are here again...for the banks.
NEW YORK (Reuters) - Foreclosure starts rose year-over-year in May for the first time in more than two years as banks resumed dealing with distressed properties after a mortgage abuse settlement earlier this year, data firm RealtyTrac said on Thursday.
The $25 billion settlement between major banks and states, formally approved in April, had been expected to jump-start foreclosure proceedings that were previously stalled by uncertainty about the liability of banks.
Overall foreclosure activity, which includes default notices, scheduled auctions and bank repossessions, affected 205,990 properties in May, a 9.1 percent increase from April.
-----------------------
Happy days are here again...for the banks.
Wednesday, June 13, 2012
Residents Of NY Town Face $1,000 Fines If They Fail To Mow Lawns - The Consumerist
Residents Of NY Town Face $1,000 Fines If They Fail To Mow Lawns - The Consumerist
Town officials say this law was passed to keep property values from sinking in the area. It's not unusual for local municipalities to enact laws that fine homeowners for allowing homes to fall into disrepair, but penalties for lack of lawn maintenance are often left to homeowners associations and the like. And the $1,000 amount for a first offense is high even by many HOA standards.
--------------------
The town is Massapequa Park, on Long Island. The fines can go as high as $10,000 for repeat offenders. This seems to be a response to all the foreclosed properties held by banks that often don't do yard maintenance, and maybe the occasional hippie family that has decided to let their lawn be free. Thanks to Mystery Reader for the link.
Town officials say this law was passed to keep property values from sinking in the area. It's not unusual for local municipalities to enact laws that fine homeowners for allowing homes to fall into disrepair, but penalties for lack of lawn maintenance are often left to homeowners associations and the like. And the $1,000 amount for a first offense is high even by many HOA standards.
--------------------
The town is Massapequa Park, on Long Island. The fines can go as high as $10,000 for repeat offenders. This seems to be a response to all the foreclosed properties held by banks that often don't do yard maintenance, and maybe the occasional hippie family that has decided to let their lawn be free. Thanks to Mystery Reader for the link.
Tuesday, June 12, 2012
Mass. town OKs $20 fines for swearing in public - Yahoo! News
Mass. town OKs $20 fines for swearing in public - Yahoo! News
MIDDLEBOROUGH, Mass. (AP) — Residents in Middleborough voted Monday night to make the foul-mouthed pay fines for swearing in public.
At a town meeting, residents voted 183-50 to approve a proposal from the police chief to impose a $20 fine on public profanity.
Officials insist the proposal was not intended to censor casual or private conversations, but instead to crack down on loud, profanity-laden language used by teens and other young people in the downtown area and public parks.
---------
One of the most consistent findings from public opinion research is that most Americans claim they believe in constitutional rights and liberties, but when they are asked about specific applications of those provisions to unpopular minorities, such as protecting the rights of atheists, they say "well, but not for them."
MIDDLEBOROUGH, Mass. (AP) — Residents in Middleborough voted Monday night to make the foul-mouthed pay fines for swearing in public.
At a town meeting, residents voted 183-50 to approve a proposal from the police chief to impose a $20 fine on public profanity.
Officials insist the proposal was not intended to censor casual or private conversations, but instead to crack down on loud, profanity-laden language used by teens and other young people in the downtown area and public parks.
---------
One of the most consistent findings from public opinion research is that most Americans claim they believe in constitutional rights and liberties, but when they are asked about specific applications of those provisions to unpopular minorities, such as protecting the rights of atheists, they say "well, but not for them."
Saturday, June 09, 2012
Property manager gets 35 years for stealing $2 million from Katy-area HOAs | abc13.com
Property manager gets 35 years for stealing $2 million from Katy-area HOAs | abc13.com
Property manager Taggert Mayfield was sentenced to 35 years in prison Friday for stealing a major amount of money from numerous homeowners associations who hired his company, Arrow Community Management.
---------------------
At what point do large numbers of home buyers realize that when you purchase a unit in a condo building or HOA, you take the risk that something like this will happen?
Property manager Taggert Mayfield was sentenced to 35 years in prison Friday for stealing a major amount of money from numerous homeowners associations who hired his company, Arrow Community Management.
---------------------
At what point do large numbers of home buyers realize that when you purchase a unit in a condo building or HOA, you take the risk that something like this will happen?
Man charged with shooting at officers while being evicted from foreclosed house | KMOV.com St. Louis
Man charged with shooting at officers while being evicted from foreclosed house | KMOV.com St. Louis
ST. ANN, Mo. (KMOV.com) – Authorities have charged a homeowner who allegedly shot at officers while being served an eviction notice at a house in St. Ann on Wednesday.
--------------------------
And now he is charged with multiple felonies. He barricaded himself in the house, they tear-gassed him, and he started shooting.
ST. ANN, Mo. (KMOV.com) – Authorities have charged a homeowner who allegedly shot at officers while being served an eviction notice at a house in St. Ann on Wednesday.
--------------------------
And now he is charged with multiple felonies. He barricaded himself in the house, they tear-gassed him, and he started shooting.
Friday, June 08, 2012
Thursday, June 07, 2012
Sharon and Ozzy Osbourne sued for 'extending their backyard without permission' | Mail Online
Sharon and Ozzy Osbourne sued for 'extending their backyard without permission' | Mail Online: Sharon and Ozzy Osbourne are being sued for 'extending their backyard without permission.'
According to a new lawsuit, the celebrity couple annexed land neighbouring their Los Angeles home which is governed by The Mountain View Estate Owners' Association.
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They better call Gloria Allred...and then a news conference.
According to a new lawsuit, the celebrity couple annexed land neighbouring their Los Angeles home which is governed by The Mountain View Estate Owners' Association.
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They better call Gloria Allred...and then a news conference.
Wednesday, June 06, 2012
California Joint Powers Authority may wield eminent domain to wrest underwater properties from lenders
Hesperia will not join regional homeowners association | hesperia, regional, association - Victorville Daily Press: HESPERIA • The City Council voted against joining other regional governments to help homeowners in over their heads with their mortgages.
Tuesday night, Hesperia’s council voted 3-2 to not join the Homeowners Protection joint powers authority, which already includes the county of San Bernardino and the cities of Fontana and Ontario.
The JPA investigates how to help property owners who owe more on their mortgages than their properties are now worth. Among the tools the group may use is the power of eminent domain — normally reserved for seizing property in the public interest once normal methods of acquisition have failed — to forcibly take mortgages away from lenders and refinance them.
----------------
This is a novel legal tactic being employed in California's Inland Empire region that's seen some of the most pronounced and protracted real estate deflation in the nation.
Tuesday night, Hesperia’s council voted 3-2 to not join the Homeowners Protection joint powers authority, which already includes the county of San Bernardino and the cities of Fontana and Ontario.
The JPA investigates how to help property owners who owe more on their mortgages than their properties are now worth. Among the tools the group may use is the power of eminent domain — normally reserved for seizing property in the public interest once normal methods of acquisition have failed — to forcibly take mortgages away from lenders and refinance them.
----------------
This is a novel legal tactic being employed in California's Inland Empire region that's seen some of the most pronounced and protracted real estate deflation in the nation.
Residents battle it out with San Antonio HOA | kens5.com San Antonio
Residents battle it out with San Antonio HOA | kens5.com San Antonio: HOA board members say the residents knew about the deed of restrictions when they purchased their home, and that ultimately the association is just trying to maintain property values.
Woman Hires Family To Liven Up For-Sale Home, Now She Can't Enter Her Own Property - The Consumerist
Woman Hires Family To Liven Up For-Sale Home, Now She Can't Enter Her Own Property - The Consumerist
The homeowner decided to move out of her Dallas-area home before it sold, but says it was her real estate agent who suggested bringing in the temporary family.
"It actually sounded like a fantastic idea," she told Dallas' CBS 11 News.
But then she found out the new tenants had brought a dog with them... and parked a truck on the yard... and put a 10-foot tall crucifix on the lawn, which violates HOA rules.
------------------
Thanks to Mystery Reader for this delightful story about the new real estate market.
The homeowner decided to move out of her Dallas-area home before it sold, but says it was her real estate agent who suggested bringing in the temporary family.
"It actually sounded like a fantastic idea," she told Dallas' CBS 11 News.
But then she found out the new tenants had brought a dog with them... and parked a truck on the yard... and put a 10-foot tall crucifix on the lawn, which violates HOA rules.
------------------
Thanks to Mystery Reader for this delightful story about the new real estate market.
Monday, June 04, 2012
Points to be aware of in HOA scandal - VEGAS INC
Points to be aware of in HOA scandal - VEGAS INC
During the early and mid 2000s, when the scam was operating, it wasn’t specifically illegal to rig an HOA board election. Attorneys say that’s why most of the guilty pleas so far are for wire and mail fraud.
But in response to the scam, the Legislature has made it a felony to fraudulently alter the results of an HOA election.
----------
How's that for a lack of oversight? Until recently, it wasn't a crime in Nevada to rig an HOA election.
During the early and mid 2000s, when the scam was operating, it wasn’t specifically illegal to rig an HOA board election. Attorneys say that’s why most of the guilty pleas so far are for wire and mail fraud.
But in response to the scam, the Legislature has made it a felony to fraudulently alter the results of an HOA election.
----------
How's that for a lack of oversight? Until recently, it wasn't a crime in Nevada to rig an HOA election.
Sunday, June 03, 2012
Change sweeping over Sacramento region's public worker pension benefits - Our Region - The Sacramento Bee
Change sweeping over Sacramento region's public worker pension benefits - Our Region - The Sacramento Bee: "We've got the whole public sector wrapped in this headlock so they can't breathe," said Bill Camp, executive secretary of the Sacramento Central Labor Council.
Camp said a state with a $2 trillion gross domestic product can afford to give public workers a good pension.
"My point is that's a political decision, not an economic decision, to starve government," he said.
----------------
Ditto privatizing local government with land use policies requiring new residential development come with a homeowners association. Nor is it just about housing and development trends.
Camp said a state with a $2 trillion gross domestic product can afford to give public workers a good pension.
"My point is that's a political decision, not an economic decision, to starve government," he said.
----------------
Ditto privatizing local government with land use policies requiring new residential development come with a homeowners association. Nor is it just about housing and development trends.
HOA scandal involving millions of dollars and thousands of homes cuts wide swath across Las Vegas Valley - VEGAS INC
HOA scandal involving millions of dollars and thousands of homes cuts wide swath across Las Vegas Valley - VEGAS INC
In 2006, condominium owners in Las Vegas’ Vistana community were accused by a lawyer of dreaming up wild, Oliver Stone-like conspiracy theories as they complained about corruption in their community association.
After six years, more than two dozen guilty plea deals and four untimely deaths among witnesses or participants, the Vistana owners say they have been vindicated in their suspicions that their community association board had been hijacked so that lucrative legal work and repairs involving construction defects would be steered to particular individuals.
------------------------
This piece starts with another angle: owners who complain about alleged board or lawyer or manager misdeeds are nearly always unable to get prosecutors or police interested. They are told it is "a civil matter," or treated as if they are nuts. And those few intrepid owners who make the long and expensive trek through the civil justice system soon find that most judges defer to these volunteer boards as if they were repositories of great political wisdom. Thanks to Fred Pilot for the link.
ps: I just love this part: "As far as what’s known to have occurred, perhaps the most unusual part of the story is that the scammers operated brazenly — hiding in plain sight — for five years. Until FBI and Metro Police raids shut down the scam in September 2008, there was no known effort by state regulators or law enforcement to expose the scammers and crack down on them in a consolidated fashion. It could have been done: Between 2003 and 2008, several groups of homeowners at the affected communities knew they were being victimized, and they fought back with lawsuits involving public court hearings and complaints to state regulators and law enforcement officials. “In this case, there were some red flags and people (in authority) just didn’t see them,” Toussaint said."
Good point. Something could and should have been done by the so-called "authorities," these so-called "regulators," the police, and prosecutors much earlier. But nobody would listen to the owners...for five years. However, that is not even remotely "unusual." That is absolutely par for the course. Those in authority almost invariably treat the owner who challenges their board as a nutjob. And the fact is that there are many other situations in HOAs and condo associations all over the country where things are going on that should be investigated by police and local prosecutors, but where instead some lonely unit owner who is waving the red flag is being treated like the neighborhood crank.
In 2006, condominium owners in Las Vegas’ Vistana community were accused by a lawyer of dreaming up wild, Oliver Stone-like conspiracy theories as they complained about corruption in their community association.
After six years, more than two dozen guilty plea deals and four untimely deaths among witnesses or participants, the Vistana owners say they have been vindicated in their suspicions that their community association board had been hijacked so that lucrative legal work and repairs involving construction defects would be steered to particular individuals.
------------------------
This piece starts with another angle: owners who complain about alleged board or lawyer or manager misdeeds are nearly always unable to get prosecutors or police interested. They are told it is "a civil matter," or treated as if they are nuts. And those few intrepid owners who make the long and expensive trek through the civil justice system soon find that most judges defer to these volunteer boards as if they were repositories of great political wisdom. Thanks to Fred Pilot for the link.
ps: I just love this part: "As far as what’s known to have occurred, perhaps the most unusual part of the story is that the scammers operated brazenly — hiding in plain sight — for five years. Until FBI and Metro Police raids shut down the scam in September 2008, there was no known effort by state regulators or law enforcement to expose the scammers and crack down on them in a consolidated fashion. It could have been done: Between 2003 and 2008, several groups of homeowners at the affected communities knew they were being victimized, and they fought back with lawsuits involving public court hearings and complaints to state regulators and law enforcement officials. “In this case, there were some red flags and people (in authority) just didn’t see them,” Toussaint said."
Good point. Something could and should have been done by the so-called "authorities," these so-called "regulators," the police, and prosecutors much earlier. But nobody would listen to the owners...for five years. However, that is not even remotely "unusual." That is absolutely par for the course. Those in authority almost invariably treat the owner who challenges their board as a nutjob. And the fact is that there are many other situations in HOAs and condo associations all over the country where things are going on that should be investigated by police and local prosecutors, but where instead some lonely unit owner who is waving the red flag is being treated like the neighborhood crank.
Organized crime in Las Vegas takes on a new look - News - ReviewJournal.com
Organized crime in Las Vegas takes on a new look - News - ReviewJournal.com
Attorneys, former police officers, real estate agents, HOA board members, a property manager and straw buyers all admitted their culpability Thursday in ripping off Las Vegas homeowner associations. Yes, this is organized crime in Vegas....Federal officials estimate the potential loss so far within 11 HOAs investigated is $76 million. That's not just the loss to the HOAs, that includes losses to construction firms' insurance companies, which may have paid more than they should. It also includes attempted fraud efforts that failed.
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Thanks to Shu Bartholomew for the link to this column by Jane Ann Morrison. As Morrison says, HOA fraud is organized crime. Associations are easy pickings. The Vegas ring took over many associations, but small groups of people take over individual associations all the time. And here is another piece from the Las Vegas Review-Journal that explains more about how the ring operated.
Attorneys, former police officers, real estate agents, HOA board members, a property manager and straw buyers all admitted their culpability Thursday in ripping off Las Vegas homeowner associations. Yes, this is organized crime in Vegas....Federal officials estimate the potential loss so far within 11 HOAs investigated is $76 million. That's not just the loss to the HOAs, that includes losses to construction firms' insurance companies, which may have paid more than they should. It also includes attempted fraud efforts that failed.
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Thanks to Shu Bartholomew for the link to this column by Jane Ann Morrison. As Morrison says, HOA fraud is organized crime. Associations are easy pickings. The Vegas ring took over many associations, but small groups of people take over individual associations all the time. And here is another piece from the Las Vegas Review-Journal that explains more about how the ring operated.
Saturday, June 02, 2012
Plea deals in HOA scheme reveal vast conspiracy - News - ReviewJournal.com
Plea deals in HOA scheme reveal vast conspiracy - News - ReviewJournal.com
"The players behind the brazen plan covered nearly every angle in their desire to swindle the unsuspecting associations out of millions of dollars in legal, construction and community management contracts, the agreements show.
Getting friendly straw buyers elected to association boards was crucial to the scheme because the conspirators needed votes to steer business their way."
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The "players" were lawyers, contractors, property managers, real estate agents, straw voters, and whoever else they needed to completely subvert and take over the political structure of dozens of homeowner associations. So what? I'll tell you so what. Maybe it takes a big conspiracy to take over dozens of HOAs and run a multi-million dollar fraud, but it only takes a handful of people to take over one HOA and turn it into an ATM or a banana republic. Why? Because of the culture of non-participation and the pervasive sense of alienation and apathy in HOAs and condo associations; because there is practically no oversight of the actions of these boards; and because sooner or later, sleazy people figure out that HOAs and condo associations are like low-hanging fruit, full of sugar and ripe for the picking. I suppose the message that emerges from the Las Vegas prosecution will be that the feds have taken down one of those "isolated cases." But the truth is that this is they have chopped off the tip of the iceberg.
"The players behind the brazen plan covered nearly every angle in their desire to swindle the unsuspecting associations out of millions of dollars in legal, construction and community management contracts, the agreements show.
Getting friendly straw buyers elected to association boards was crucial to the scheme because the conspirators needed votes to steer business their way."
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The "players" were lawyers, contractors, property managers, real estate agents, straw voters, and whoever else they needed to completely subvert and take over the political structure of dozens of homeowner associations. So what? I'll tell you so what. Maybe it takes a big conspiracy to take over dozens of HOAs and run a multi-million dollar fraud, but it only takes a handful of people to take over one HOA and turn it into an ATM or a banana republic. Why? Because of the culture of non-participation and the pervasive sense of alienation and apathy in HOAs and condo associations; because there is practically no oversight of the actions of these boards; and because sooner or later, sleazy people figure out that HOAs and condo associations are like low-hanging fruit, full of sugar and ripe for the picking. I suppose the message that emerges from the Las Vegas prosecution will be that the feds have taken down one of those "isolated cases." But the truth is that this is they have chopped off the tip of the iceberg.
More indictments could come in Vegas homeowner association fraud case
Federal judge taking pleas in Vegas homeowner association fraud case | Reno Gazette-Journal | rgj.com: A prosecutor told a federal judge in Las Vegas that more indictments may come after 14 defendants pleaded guilty in a sweeping federal investigation of Southern Nevada homeowner associations steering business to favored attorneys and businesses.
The assembly line-style proceedings Thursday in U.S. District Court in Las Vegas brought to 25 the number of people who have pleaded guilty since last year in an ongoing HOA fraud and corruption probe focusing on rigged elections that packed homeowner association boards with co-conspirators between 2003 and 2009.
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When Phil "The Ghostbuster" Testa was alive and kicking about in Sin City more than a decade ago, the Brooklyn native alluded to NYC co-op boards being turned into ATMs for their vendors and drew parallels to what he saw happening in Vegas.
The assembly line-style proceedings Thursday in U.S. District Court in Las Vegas brought to 25 the number of people who have pleaded guilty since last year in an ongoing HOA fraud and corruption probe focusing on rigged elections that packed homeowner association boards with co-conspirators between 2003 and 2009.
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When Phil "The Ghostbuster" Testa was alive and kicking about in Sin City more than a decade ago, the Brooklyn native alluded to NYC co-op boards being turned into ATMs for their vendors and drew parallels to what he saw happening in Vegas.
The HOA Crisis | HousingWire
The HOA Crisis | HousingWire: The reason for the assessments, the industry would discover, is that most of the foreclosures were on mortgages originated between 2005 and 2008. Stokes said most homes being built during that bubble came under an HOA or condo association. He looked at the numbers and estimates 60% of the national REO inventory has an HOA attached, based on the files he receives from clients. That number goes up in places like Nevada and Florida.
"One property," he says in bewilderment, referring to one in Las Vegas, "had six HOAs attached to it. It was part of an enormous development. It had two primary HOAs and four secondary ones."
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A tale of caveat emptor when the tax man is the HOA.
"One property," he says in bewilderment, referring to one in Las Vegas, "had six HOAs attached to it. It was part of an enormous development. It had two primary HOAs and four secondary ones."
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A tale of caveat emptor when the tax man is the HOA.
FloriDUH | Sun Sentinel Blogs | Ex-deputy and cop accusd of bilking HOA for over $16,000
FloriDUH | Sun Sentinel Blogs | Ex-deputy and cop accusd of bilking HOA for over $16,000: Ex-deputy and cop accusd of bilking HOA for over $16,000
Friday, June 01, 2012
Rain barrels touted as simple solution to keep basements dry - Saskatchewan - CBC News
Rain barrels touted as simple solution to keep basements dry - Saskatchewan - CBC News
It won't fly in Privatopia, where it will raise fears that it will ruin the neighborhood. Jed Clampett doesn't live here!
It won't fly in Privatopia, where it will raise fears that it will ruin the neighborhood. Jed Clampett doesn't live here!
The housing bust as seen through the planned community
"It's just so... false in a way."
That's the take on Privatopia from photographer Amanda Dahlgren, interviewed today by Kai Ryssdal, host of American Public Media's Marketplace radio program.
Dahlgren was interviewed about her collection of photos designed to artistically portray continued residential real estate market distress in planned communities in the San Diego area -- with homes literally shown upside down. PUD units appear to the photographer be constructed with planned obsolescence for a short life span, with new homes being built in the same development where just a few blocks away, others have fallen into foreclosure and disrepair. "They're sort of built to be disposable," Dahlgren tells Ryssdal.
You can read the entire interview transcript and view Dahlgren's photos by clicking here.
Fourteen more plead guilty in HOA fraud, corruption case - News - ReviewJournal.com
Fourteen more plead guilty in HOA fraud, corruption case - News - ReviewJournal.com
Thanks to Rodney Gray for this link. This makes 26 convictions so far, and the US Attorney is now going to seek grand jury indictments of as many as 12 more. There is one more indictment that is implied: the indictment of residential private government as an institution that is inadequately supervised and very fragile.
Thanks to Rodney Gray for this link. This makes 26 convictions so far, and the US Attorney is now going to seek grand jury indictments of as many as 12 more. There is one more indictment that is implied: the indictment of residential private government as an institution that is inadequately supervised and very fragile.
Wednesday, May 30, 2012
America's Most Innovative Neighborhood: 15 Square Miles In New Mexico, Population: 0 | Fast Company
America's Most Innovative Neighborhood: 15 Square Miles In New Mexico, Population: 0 | Fast Company
This summer, Pegasus Global Holdings will begin building a city from scratch in the desert just outside of Hobbs, New Mexico, that will look not unlike Hobbs itself. The Center for Innovation, Testing and Evaluation will be modeled on a mid-sized, mid-American town of about 35,000 people. Hobbs, located just outside the Texas border in the Southeastern corner of the state, is just a bit larger than that. The new city--CITE, as the locals and out-of-town developers call it--will similarly have a kind of downtown, a retail district, residential neighborhoods, and collar communities. It will have functioning roads, self-sustaining utilities, and its own communications infrastructure. It will not, however, have a single permanent resident.
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This summer, Pegasus Global Holdings will begin building a city from scratch in the desert just outside of Hobbs, New Mexico, that will look not unlike Hobbs itself. The Center for Innovation, Testing and Evaluation will be modeled on a mid-sized, mid-American town of about 35,000 people. Hobbs, located just outside the Texas border in the Southeastern corner of the state, is just a bit larger than that. The new city--CITE, as the locals and out-of-town developers call it--will similarly have a kind of downtown, a retail district, residential neighborhoods, and collar communities. It will have functioning roads, self-sustaining utilities, and its own communications infrastructure. It will not, however, have a single permanent resident.
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Monday, May 28, 2012
Compiled statutes for Illinois common interest housing
mckenzie-law - 1 - JMLS course RE 617A
I compiled the main statutes that govern CIDs in Illinois in a single PDF file with an index. You can download it from my law wiki. The statutes include the Illinois Condominium Property Act, the Illinois Common Interest Community Associations Act, and the Illinois General Not for Profit Corporations Act of 1986.
I compiled the main statutes that govern CIDs in Illinois in a single PDF file with an index. You can download it from my law wiki. The statutes include the Illinois Condominium Property Act, the Illinois Common Interest Community Associations Act, and the Illinois General Not for Profit Corporations Act of 1986.
HOA conspiracy pleas set for this week - News - ReviewJournal.com
HOA conspiracy pleas set for this week - News - ReviewJournal.com
Ten people have already entered guilty pleas. This week, an additional sixteen defendants are expected to plead guilty. They include three retired police officers. All these sixteen are cooperating with the US Attorney as they prepare to indict up to twelve alleged higher-ups in the massive, multi-million dollar scam that involved taking over HOAs and condo associations through rigged elections and using control of the associations to award service contracts to fellow conspirators. Lawyers and property managers were, of course, up to their eyeballs in the entire scheme.
This tip-of-the-iceberg case highlights the extreme vulnerability of community associations to financial scams. They are run by untrained, unsupervised, and largely unregulated volunteers who are elected out of an internal political culture of non-participation and apathy. What would you expect, if not fraud, self-dealing, and incompetence?
Ten people have already entered guilty pleas. This week, an additional sixteen defendants are expected to plead guilty. They include three retired police officers. All these sixteen are cooperating with the US Attorney as they prepare to indict up to twelve alleged higher-ups in the massive, multi-million dollar scam that involved taking over HOAs and condo associations through rigged elections and using control of the associations to award service contracts to fellow conspirators. Lawyers and property managers were, of course, up to their eyeballs in the entire scheme.
This tip-of-the-iceberg case highlights the extreme vulnerability of community associations to financial scams. They are run by untrained, unsupervised, and largely unregulated volunteers who are elected out of an internal political culture of non-participation and apathy. What would you expect, if not fraud, self-dealing, and incompetence?
Sunday, May 27, 2012
BofA tries turning distressed homeowners into renters - latimes.com
BofA tries turning distressed homeowners into renters - latimes.com
Testing a mortgage-to-lease program in the Golden State, Bank of America Corp. sent 300 letters this week inviting borrowers without other options to apply. An additional 1,500 letters will go out in the next few weeks as BofA — which also is testing the program in three other states — evaluates whether a national rollout is feasible.
BofA plans to sell the homes to investors. It typically would recoup far less than what's owed but would come out far ahead compared with where it would be after evicting borrowers, making "cash for keys" payments to help them move and selling empty and often vandalized foreclosures in the troubled housing market.
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This is what should have been happening since 2007, but in the millions instead of the hundreds, and mandated by law instead of some baby-step experiment by a too-big-to-fail bank that is insolvent anyway. Thanks to Fred Pilot for the link.
Testing a mortgage-to-lease program in the Golden State, Bank of America Corp. sent 300 letters this week inviting borrowers without other options to apply. An additional 1,500 letters will go out in the next few weeks as BofA — which also is testing the program in three other states — evaluates whether a national rollout is feasible.
BofA plans to sell the homes to investors. It typically would recoup far less than what's owed but would come out far ahead compared with where it would be after evicting borrowers, making "cash for keys" payments to help them move and selling empty and often vandalized foreclosures in the troubled housing market.
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This is what should have been happening since 2007, but in the millions instead of the hundreds, and mandated by law instead of some baby-step experiment by a too-big-to-fail bank that is insolvent anyway. Thanks to Fred Pilot for the link.
Death by Foreclosure | Occupy America
Death by Foreclosure | Occupy America
This is a link-filled article about the emotional toll of foreclosure and hard economic times. Suicides, depression, anxiety, emergency room admissions, and general human misery. I have spent some time in foreclosure court recently, including volunteering to explain the process to rooms full of unrepresented people who are facing foreclosure. As everybody knows, the number of foreclosure cases (nearly all mortgage foreclosures) has multiplied and shows no sign of leveling off--in fact, in many counties it is certain to increase for at least the next two or three years. The stress on these people is enormous, but nobody in government seems to do more than pay lip service to that fact. The Obama administration and the Democrats in Congress have been far more concerned about banks than people who are losing their homes. Across the nation, the much-ballyhooed mortgage robo-signing settlement is being gobbled up by states to balance their budgets: "In Texas, $125 million went straight to the general fund. Missouri will use its $40 million to soften cuts to higher education. Indiana is spending more than half its allotment to pay energy bills for low-income families, while Virginia will use most of its $67 million to help revenue-starved local governments. Like California, some other states with outsize problems from the housing bust are spending the money for something other than homeowner relief. Georgia, where home prices are still falling, will use its $99 million to lure companies to the state."
I am wondering if this is part of a larger picture: a US population that is increasingly stressed-out, depressed, angry, and fearful. We have developed a lifestyle in which most of the things we do involve automated and dehumanizing interfaces with large institutions. These interfaces are frustrating and often intrusive, and involve little or no human interaction. Banking is increasingly online. Buying groceries? Scan and bag your own. Buy gas? Pump and pay yourself. Calling the doctor for a test result? Wait half an hour to get through the voice mail system to a human being. And order your prescriptions online, please. On the job, support staff are being fired in droves and instead we are now doing everything ourselves using computer interfaces that were designed by computer geeks for computer geeks. I could go on, but everybody knows this.
Homeowner and condominium associations probably should be seen as part of this trend toward dehumanized social functions. We have replaced informal neighbor relationships and public local governments with a corporate institution that tends to be intrusive, expensive, impersonal, and often incredibly frustrating.
This is a link-filled article about the emotional toll of foreclosure and hard economic times. Suicides, depression, anxiety, emergency room admissions, and general human misery. I have spent some time in foreclosure court recently, including volunteering to explain the process to rooms full of unrepresented people who are facing foreclosure. As everybody knows, the number of foreclosure cases (nearly all mortgage foreclosures) has multiplied and shows no sign of leveling off--in fact, in many counties it is certain to increase for at least the next two or three years. The stress on these people is enormous, but nobody in government seems to do more than pay lip service to that fact. The Obama administration and the Democrats in Congress have been far more concerned about banks than people who are losing their homes. Across the nation, the much-ballyhooed mortgage robo-signing settlement is being gobbled up by states to balance their budgets: "In Texas, $125 million went straight to the general fund. Missouri will use its $40 million to soften cuts to higher education. Indiana is spending more than half its allotment to pay energy bills for low-income families, while Virginia will use most of its $67 million to help revenue-starved local governments. Like California, some other states with outsize problems from the housing bust are spending the money for something other than homeowner relief. Georgia, where home prices are still falling, will use its $99 million to lure companies to the state."
I am wondering if this is part of a larger picture: a US population that is increasingly stressed-out, depressed, angry, and fearful. We have developed a lifestyle in which most of the things we do involve automated and dehumanizing interfaces with large institutions. These interfaces are frustrating and often intrusive, and involve little or no human interaction. Banking is increasingly online. Buying groceries? Scan and bag your own. Buy gas? Pump and pay yourself. Calling the doctor for a test result? Wait half an hour to get through the voice mail system to a human being. And order your prescriptions online, please. On the job, support staff are being fired in droves and instead we are now doing everything ourselves using computer interfaces that were designed by computer geeks for computer geeks. I could go on, but everybody knows this.
Homeowner and condominium associations probably should be seen as part of this trend toward dehumanized social functions. We have replaced informal neighbor relationships and public local governments with a corporate institution that tends to be intrusive, expensive, impersonal, and often incredibly frustrating.
Saturday, May 26, 2012
HOA forecloses on Mesa homeowner | azfamily.com Phoenix
HOA forecloses on Mesa homeowner | azfamily.com Phoenix
She also stopped paying her monthly dues to the Fountain of the Sun Homeowners Association -- a requirement. She claims the HOA wasn't doing anything to keep up the neighborhood.
“They’re voted in. They do whatever they want with our money,” she said.
As a result, Brummer's HOA fees became so overdue that the HOA took her to court. In March, it actually won a judgment to foreclose on her home.
The foreclosure is to collect a total of $16,000. Nearly $13,000 are for HOA attorney fees, and the remainder is unpaid HOA dues and interest.
Brummer says she had no idea not paying HOA dues came with such a heavy price.
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So it seems that she knew she had an HOA but didn't like the way they did things, and she says she didn't know they could foreclose, so she stopped paying. Eventually the HOA got a foreclosure judgment. This is a pretty shocking level of misunderstanding on her part. If a person lives in an HOA with mandatory membership and mandatory assessments, it is child's play to enforce those obligations.
George Staropoli says, of this situation: "“The laws are pro-HOA laws,” Staropoll said. “The CC&Rs are adhesion contracts. The homeowner who lives in a homeowner association is deprived of the rights, privileges, and freedoms that he enjoys outside the HOA. Why are they taken away from him?”
That's true--there are a lot of "pro-HOA laws" that put owners at a disadvantage, as George says. However, this case would be an open and shut foreclosure under any state's laws, based on what is in this news account. It looks like a matter of complete ignorance of the entire concept.
Maybe the Arizona state government should make sure people know what they are getting into when they buy into an HOA. Or maybe they should address the amount of attorney fees relative to the dues and late charges in question (in this case, $13,000 for the lawyers, $3000 for the HOA). Every session the AZ legislature takes up a bunch of HOA reform bills, but I wonder sometimes if Arizona is like Texas--a place where, when all is said and done, the political climate just isn't particularly supportive of government protecting consumers. Arizona is one of those red states where most of the voters seem to think we don't need no guvmint interfering in people's bidness. (They would all die of thirst in three days if not for their dependence on the federal government for "the largest and most expensive aqueduct system ever constructed in the United States",but leave that aside for the moment.) They keep voting for hard-right people like Jan Brewer, Jon Kyl, and Jeff Flake. Now they are going big for private prisons that are a bad deal. Government bad, private sector good. And that kind of political culture isn't conducive to serious consumer protection.
Thanks to Fred Pilot for the link.
She also stopped paying her monthly dues to the Fountain of the Sun Homeowners Association -- a requirement. She claims the HOA wasn't doing anything to keep up the neighborhood.
“They’re voted in. They do whatever they want with our money,” she said.
As a result, Brummer's HOA fees became so overdue that the HOA took her to court. In March, it actually won a judgment to foreclose on her home.
The foreclosure is to collect a total of $16,000. Nearly $13,000 are for HOA attorney fees, and the remainder is unpaid HOA dues and interest.
Brummer says she had no idea not paying HOA dues came with such a heavy price.
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So it seems that she knew she had an HOA but didn't like the way they did things, and she says she didn't know they could foreclose, so she stopped paying. Eventually the HOA got a foreclosure judgment. This is a pretty shocking level of misunderstanding on her part. If a person lives in an HOA with mandatory membership and mandatory assessments, it is child's play to enforce those obligations.
George Staropoli says, of this situation: "“The laws are pro-HOA laws,” Staropoll said. “The CC&Rs are adhesion contracts. The homeowner who lives in a homeowner association is deprived of the rights, privileges, and freedoms that he enjoys outside the HOA. Why are they taken away from him?”
That's true--there are a lot of "pro-HOA laws" that put owners at a disadvantage, as George says. However, this case would be an open and shut foreclosure under any state's laws, based on what is in this news account. It looks like a matter of complete ignorance of the entire concept.
Maybe the Arizona state government should make sure people know what they are getting into when they buy into an HOA. Or maybe they should address the amount of attorney fees relative to the dues and late charges in question (in this case, $13,000 for the lawyers, $3000 for the HOA). Every session the AZ legislature takes up a bunch of HOA reform bills, but I wonder sometimes if Arizona is like Texas--a place where, when all is said and done, the political climate just isn't particularly supportive of government protecting consumers. Arizona is one of those red states where most of the voters seem to think we don't need no guvmint interfering in people's bidness. (They would all die of thirst in three days if not for their dependence on the federal government for "the largest and most expensive aqueduct system ever constructed in the United States",but leave that aside for the moment.) They keep voting for hard-right people like Jan Brewer, Jon Kyl, and Jeff Flake. Now they are going big for private prisons that are a bad deal. Government bad, private sector good. And that kind of political culture isn't conducive to serious consumer protection.
Thanks to Fred Pilot for the link.
Wednesday, May 23, 2012
Residents question HOA accountability | KXAN.com
Residents question HOA accountability | KXAN.com
AUSTIN (KXAN) - A dispute over what could be more than $1 million in unaccounted-for spending by an Austin homeowners association has sparked a police inquiry into possible fraud and theft, a KXAN investigation has confirmed.
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Yes...another one.
Thanks to Fred Pilot for the link.
AUSTIN (KXAN) - A dispute over what could be more than $1 million in unaccounted-for spending by an Austin homeowners association has sparked a police inquiry into possible fraud and theft, a KXAN investigation has confirmed.
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Yes...another one.
Thanks to Fred Pilot for the link.
Monday, May 21, 2012
NYC's First Million Dollar Parking Spot to Hit Market - Local News - New York, NY - msnbc.com
NYC's First Million Dollar Parking Spot to Hit Market - Local News - New York, NY - msnbc.com
The private parking spot is located inside an eight-story luxury condominium building at 66 E. 11th St., and will come with its own deed and sales contract, the New York Post reports. Like a condo, it will be charged maintenance fees.
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So the 0.0001% are doing fine, thank you very much.
The private parking spot is located inside an eight-story luxury condominium building at 66 E. 11th St., and will come with its own deed and sales contract, the New York Post reports. Like a condo, it will be charged maintenance fees.
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So the 0.0001% are doing fine, thank you very much.
Inmates riot in Mississippi private prison, one guard killed
Inmates riot in Mississippi prison, one guard killed - chicagotribune.com
Inmates seized control of a privately owned prison in Mississippi on Sunday after riots broke out, and a guard was killed in the chaos in the low security facility, authorities said. Adams County Coroner James Lee said the 23-year-old guard died of blunt trauma to the head during the riot at the Adams County Correctional Center, a privately owned prison that houses mostly illegal immigrants for the Federal Bureau of Prisons. "This is an ongoing riot that still has not been rectified because the prisoners are in still in charge of the prison," Lee said, speaking at around 9 p.m. local time. The disturbance in the 2,567-bed prison began on Sunday afternoon inside the facility in Natchez, Mississippi, the Corrections Corporation of America, which owns the prison, said in a statement.
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This experiment in privatization doesn't seem to be turning out so well.
Inmates seized control of a privately owned prison in Mississippi on Sunday after riots broke out, and a guard was killed in the chaos in the low security facility, authorities said. Adams County Coroner James Lee said the 23-year-old guard died of blunt trauma to the head during the riot at the Adams County Correctional Center, a privately owned prison that houses mostly illegal immigrants for the Federal Bureau of Prisons. "This is an ongoing riot that still has not been rectified because the prisoners are in still in charge of the prison," Lee said, speaking at around 9 p.m. local time. The disturbance in the 2,567-bed prison began on Sunday afternoon inside the facility in Natchez, Mississippi, the Corrections Corporation of America, which owns the prison, said in a statement.
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This experiment in privatization doesn't seem to be turning out so well.
At home with the denizens of Slab City - video reveals the lives of weirdos, hippies and drug addicts inhabiting the lawless patch of California desert | Mail Online
At home with the denizens of Slab City - video reveals the lives of weirdos, hippies and drug addicts inhabiting the lawless patch of California desert | Mail Online
'You have cool people, you have dumb asses and you have all those in between,' he says.
'We just have fewer people and we have a general consensus to live and let live and to let each other alone and to mind their own business."
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And best of all, no homeowners' association to boss you around.
Wednesday, May 16, 2012
FOCUS: Colonized by Corporations
FOCUS: Colonized by Corporations
"We have been, like nations on the periphery of empire, colonized. We are controlled by tiny corporate entities that have no loyalty to the nation and indeed in the language of traditional patriotism are traitors. They strip us of our resources, keep us politically passive and enrich themselves at our expense."
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So says Chris Hedges, one of the most trenchant and literate critics of the role of corporations in our society.
"We have been, like nations on the periphery of empire, colonized. We are controlled by tiny corporate entities that have no loyalty to the nation and indeed in the language of traditional patriotism are traitors. They strip us of our resources, keep us politically passive and enrich themselves at our expense."
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So says Chris Hedges, one of the most trenchant and literate critics of the role of corporations in our society.
Gov. Jan Brewer Signs New Law That Takes Debt Collectors' Word For How Much You Owe | Crooks and Liars
Gov. Jan Brewer Signs New Law That Takes Debt Collectors' Word For How Much You Owe | Crooks and Liars
The language in this bill — primarily, but unofficially, known as the Credit Card Responsibility Bill — that pertains to collection agencies is this:
“In an uncontested court action in this state a creditor may establish the amount of the debt that is owed on a credit card account through a copy of the issuer’s final billing statement or by the electronic record pursuant to section 44-7007 that is maintained by the issuer and that represents the amount owed. In contested actions the court shall weigh the evidence of the parties as required by law.”
"Well yes, theoretically, the courts would weigh evidence. But as we saw in the Florida foreclosure courts, judges simply rubber-stamped the bank requests, no matter how egregious or poorly documented their claims. So I wouldn't count on it."
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So Governor Brewer is making it easy for collection agencies to "prove" the amount that is owed. Now they don't have to go to the trouble of finding and digging through all the records of the original creditor to find out how much is really owed. They just offer the last billing statement.
follow up: If you would like to read why this is a bad idea, with a real-world example from Tennessee, check out law professor Bob Lawless' take on it at the blog Credit Slips. : "The documentation problems identified in LVNV Funding are pervasive throughout the debt collection industry. Because not every court is careful and because not every consumer has good representation, credit card debts undoubtedly are being collected without adequate evidence the debt is due and owing."
Wells Fargo Has Blood on Its Hands: Desperate Man Commits Suicide After Shocking Foreclosure Mistreatment | News & Politics | AlterNet
Wells Fargo Has Blood on Its Hands: Desperate Man Commits Suicide After Shocking Foreclosure Mistreatment | News & Politics | AlterNet
For every story about HOA foreclosure abuse, there are probably a hundred unpublicized stories of mortgage foreclosure abuse where banks that the taxpayers bailed out have been aggressively screwing people. They are misapplying payments, fraudulently force-placing insurance, losing checks, and doing other things to create a phony basis for "default," and then sending the file to a foreclosure mill.
For every story about HOA foreclosure abuse, there are probably a hundred unpublicized stories of mortgage foreclosure abuse where banks that the taxpayers bailed out have been aggressively screwing people. They are misapplying payments, fraudulently force-placing insurance, losing checks, and doing other things to create a phony basis for "default," and then sending the file to a foreclosure mill.
Monday, May 14, 2012
Co-conspirator in Plymouth Hill condo scam pleads guilty - Colonial News - Montgomery News
Co-conspirator in Plymouth Hill condo scam pleads guilty - Colonial News - Montgomery News
A co-conspirator in the Plymouth Hill Condominium kickback scam pleaded guilty in court April 26 and has agreed to testify against his accomplices. Keith Brandolph, a salesperson with Siemens Fire Safety, pleaded guilty to one count of theft by deception and one count of engaging in criminal conspiracy after he admitted to helping the condo association manager swindle hundreds of thousands of dollars from owners within Plymouth Hill condominiums. Last year, the district attorney initially charged Vincent Lopez, the paid facility manager of the condo complex, and three others with cheating homeowners out of as much as $600,000 through various thinly veiled means of hiking association rates. Lopez and two others — Irving Betoff and Roosevelt Harris — are scheduled to plead guilty to unknown charges May 2. Patricia Paugh, assistant property manager of Plymouth Hill condos, who is charged with theft, criminal conspiracy and related offenses, is expected to plead guilty the following day.
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Thanks to Rodney Gray for this link. There have been so many of these episodes that you would expect demands for government oversight of property management firms. This one is from Pennsylvania.
A co-conspirator in the Plymouth Hill Condominium kickback scam pleaded guilty in court April 26 and has agreed to testify against his accomplices. Keith Brandolph, a salesperson with Siemens Fire Safety, pleaded guilty to one count of theft by deception and one count of engaging in criminal conspiracy after he admitted to helping the condo association manager swindle hundreds of thousands of dollars from owners within Plymouth Hill condominiums. Last year, the district attorney initially charged Vincent Lopez, the paid facility manager of the condo complex, and three others with cheating homeowners out of as much as $600,000 through various thinly veiled means of hiking association rates. Lopez and two others — Irving Betoff and Roosevelt Harris — are scheduled to plead guilty to unknown charges May 2. Patricia Paugh, assistant property manager of Plymouth Hill condos, who is charged with theft, criminal conspiracy and related offenses, is expected to plead guilty the following day.
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Thanks to Rodney Gray for this link. There have been so many of these episodes that you would expect demands for government oversight of property management firms. This one is from Pennsylvania.
Sunday, May 13, 2012
Covington-area family battles homeowners association over solar panels | NOLA.com
Covington-area family battles homeowners association over solar panels | NOLA.com
He had solar panels installed on the roof of his house in the Estates of Northpark near Covington in March and cut his family's time on the grid -- and his electricity costs -- by about 80 percent.
But the time for celebration never came. Before he ever received his first post-solar electric bill, his homeowners association sued him, saying Piazza had not gotten permission to install the panels on his house.
Neighbors in the gated enclave -- typical of many newer, upscale subdivisions in St. Tammany Parish -- also complained that the eco-friendly panels are "unsightly," according to the lawsuit.
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Thanks to Fred Pilot and Beanie Adolph for this link. It seems that this solar panel vs. HOA issue may become a serious problem that will require national legislation. That's what happened with satellite dishes. Eventually the satellite TV industry lobbied congress, which ordered the FCC to draft a rule, and now we don't see so many conflicts over satellite dishes in HOA and condo properties. Solar panels will be a major part of our energy supply system eventually, and I can't see condo and hoa boards being allowed to get in the way of that, particularly on "unsightliness" grounds.
He had solar panels installed on the roof of his house in the Estates of Northpark near Covington in March and cut his family's time on the grid -- and his electricity costs -- by about 80 percent.
But the time for celebration never came. Before he ever received his first post-solar electric bill, his homeowners association sued him, saying Piazza had not gotten permission to install the panels on his house.
Neighbors in the gated enclave -- typical of many newer, upscale subdivisions in St. Tammany Parish -- also complained that the eco-friendly panels are "unsightly," according to the lawsuit.
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Thanks to Fred Pilot and Beanie Adolph for this link. It seems that this solar panel vs. HOA issue may become a serious problem that will require national legislation. That's what happened with satellite dishes. Eventually the satellite TV industry lobbied congress, which ordered the FCC to draft a rule, and now we don't see so many conflicts over satellite dishes in HOA and condo properties. Solar panels will be a major part of our energy supply system eventually, and I can't see condo and hoa boards being allowed to get in the way of that, particularly on "unsightliness" grounds.
Saturday, May 12, 2012
Friday, May 11, 2012
Fannie Mae had first-quarter profit, needs no new taxpayer funds - latimes.com
Fannie Mae had first-quarter profit, needs no new taxpayer funds - latimes.com
WASHINGTON — Fannie Mae on Wednesday reported a $2.7-billion profit for the first three months of the year and will not need new taxpayer money for the first time since the government seized the housing finance giant in 2008.
Fannie Mae said the improvement in its finances came from a slower decline in housing prices, a lower rate of homeowners behind on their payments and fewer foreclosed homes on the company's books.
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It's nice to see something that isn't entirely negative. I think that passes for semi-optimism.
WASHINGTON — Fannie Mae on Wednesday reported a $2.7-billion profit for the first three months of the year and will not need new taxpayer money for the first time since the government seized the housing finance giant in 2008.
Fannie Mae said the improvement in its finances came from a slower decline in housing prices, a lower rate of homeowners behind on their payments and fewer foreclosed homes on the company's books.
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It's nice to see something that isn't entirely negative. I think that passes for semi-optimism.
Wednesday, May 09, 2012
The woman who lives in a shed: how London landlords are cashing in | Society | The Guardian
The woman who lives in a shed: how London landlords are cashing in | Society | The Guardian
Council finds people living in everything from massively overcrowded houses to a walk-in freezer – and the problem is getting worse...Converted sheds have become an increasingly mainstream – if illegal – part of the London property market. It's a logical development, given the explosion of property prices throughout the capital, and the huge shortage of supply. As central London becomes more expensive, people are pushed further out and rental prices even in Newham, which is the second most deprived borough in England and Wales, are rising fast.
Landlords are subdividing family homes into smaller and smaller units, haphazardly extending plumbing and electricity connections from the main properties into the garden sheds and garages, which they have no problem in renting out.
Newham's mayor, Sir Robin Wales, is dismayed. "It's big money. You get a few breeze blocks, sling up some crappy old shed in your back garden, and now you're making hundreds and hundreds of pounds a week. It doesn't take long for you to make a lot of money out of it, provided you are prepared to trade in human misery.
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Life under the virtuous austerity program of David Cameron is working out to be much like the Victorian Era. They are back in recession. If the Republicans take over the national government in November, we can look forward to the same.
Ecuador law would forgive debt on defaulted mortgages of first-time buyers - The Washington Post
Ecuador law would forgive debt on defaulted mortgages of first-time buyers - The Washington Post
QUITO, Ecuador — Ecuador’s legislature has passed legislation that would require banks to forgive any outstanding debt on mortgages for first-time home buyers of properties worth up to $146,000 if they default and forfeit a home.
The measure, aimed at discouraging a real estate bubble of the type that has caused so much pain in the United States and Europe, won praise from many Ecuadoreans on Wednesday. The country’s banking industry did not immediately comment.
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That makes Ecuador the leading edge of housing finance reform.
QUITO, Ecuador — Ecuador’s legislature has passed legislation that would require banks to forgive any outstanding debt on mortgages for first-time home buyers of properties worth up to $146,000 if they default and forfeit a home.
The measure, aimed at discouraging a real estate bubble of the type that has caused so much pain in the United States and Europe, won praise from many Ecuadoreans on Wednesday. The country’s banking industry did not immediately comment.
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That makes Ecuador the leading edge of housing finance reform.
George Lucas pushes low-income housing option
George Lucas pushes low-income housing option
The Marin Community Foundation announced Tuesday that it is working with Lucasfilm to "explore options" for building affordable housing in the location where the movie mogul wanted to build a film studio until residents in an adjacent subdivision protested.
The Marin Community Foundation announced Tuesday that it is working with Lucasfilm to "explore options" for building affordable housing in the location where the movie mogul wanted to build a film studio until residents in an adjacent subdivision protested.
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I can see why "affordable" housing is needed there. Marin County homes are currently worth an average of $565,000.
Tuesday, May 08, 2012
PHOTOS: Wilbur the pig wins Texas HOA court battle | kens5.com San Antonio
PHOTOS: Wilbur the pig wins Texas HOA court battle | kens5.com San Antonio
The HOA says Wilbur is livestock. The family says he is a pet. The judge agrees with the family: Wilbur is a pet. I wonder if he asked, "But why does the pig have a wooden leg?" (IF you don't know that joke, it's easy to look up.)
Thanks to Fred Pilot for the link.
The HOA says Wilbur is livestock. The family says he is a pet. The judge agrees with the family: Wilbur is a pet. I wonder if he asked, "But why does the pig have a wooden leg?" (IF you don't know that joke, it's easy to look up.)
Thanks to Fred Pilot for the link.
Monday, May 07, 2012
“The HOAX” is Plugged on ABC Channel 13 Las Vegas | The HOAX documentary
“The HOAX” is Plugged on ABC Channel 13 Las Vegas | The HOAX documentary
Yes, indeed it is. There is even a link on the Channel 13 website to the trailer for Rodney's film.
Yes, indeed it is. There is even a link on the Channel 13 website to the trailer for Rodney's film.
HOA board member's bad behavior catches up with him - www.ktnv.com
HOA board member's bad behavior catches up with him - www.ktnv.com
North Las Vegas, NV (KTNV) -- He's the man Contact 13 dubbed president of the HOA Hall of Shame.
And now, his reign may be coming to an end.
Chief Investigator Darcy Spears first broke this story in late 2010. Now, a year and a half later, the state is finally taking action against Joe Bitsky...The letter says the Real Estate Division has "obtained sufficient evidence to commence a disciplinary action... and intends to file a complaint for hearing before the Commission for Common Interest Communities." In the letter, the Autumn Chase board is accused of violating more than 16 state laws, including failing to audit HOA funds; failing to hold proper elections; and conducting financial transactions not in the association's interest and for their own personal gain such as using association money to install security cameras on their home....And as always, continue sending your nominations for the HOA Hall of Shame to 13investigates@ktnv.com.
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And check out this plug for Rodney Gray's new documentary: "Bitsky's behavior and Contact 13's coverage of it has earned Autumn Chase and our own Darcy Spears a featured spot in a soon-to-be-released national documentary on HOAs. We've set up a link to the trailer. To see it, just type links in the search box.."
Off the Grid : Eric Valli
Off the Grid : Eric Valli
"There are growing number of people
who have decided to live light on the earth
to not be a part of problem anymore
I spent the last few years with four of them
striving for harmony with nature
in the most pristine corners of United States."
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These photos are just amazing. Take a look.
"There are growing number of people
who have decided to live light on the earth
to not be a part of problem anymore
I spent the last few years with four of them
striving for harmony with nature
in the most pristine corners of United States."
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These photos are just amazing. Take a look.
The homes of the future: Amazing pictures of sleek and stylish houses show next generation of American living | Mail Online
The homes of the future: Amazing pictures of sleek and stylish houses show next generation of American living | Mail Online
Isn't it interesting that whenever people talk about homes of the future or dream homes, the place is always unique and often designed to reflect the owner's interests or personality? That is, when the owner is rich. When the owner is a working schmoe like most of us, s/he gets a place that is a testament to rigid uniformity. Not only does look like everything else in the neighborhood--it comes with a set of rules that make it impossible for the owner to make any significant changes in the house's appearance, size, or function. I guess individualized homes are a perquisite of the rich and famous. The rest of us are governed by the banking and investment system that requires fungible housing units, so they can be securitized and valued and maintained as little pieces of security for mortgage backed securities.
Isn't it interesting that whenever people talk about homes of the future or dream homes, the place is always unique and often designed to reflect the owner's interests or personality? That is, when the owner is rich. When the owner is a working schmoe like most of us, s/he gets a place that is a testament to rigid uniformity. Not only does look like everything else in the neighborhood--it comes with a set of rules that make it impossible for the owner to make any significant changes in the house's appearance, size, or function. I guess individualized homes are a perquisite of the rich and famous. The rest of us are governed by the banking and investment system that requires fungible housing units, so they can be securitized and valued and maintained as little pieces of security for mortgage backed securities.
Sunday, May 06, 2012
State lawmakers look to ease oversight on private prisons - CBS 5 - KPHO
State lawmakers look to ease oversight on private prisons - CBS 5 - KPHO
Two convicted killers and a third dangerous criminal broke out of a medium security private prison facility in Kingman Arizona in July 2010.
The escapees were eventually caught after a nationwide manhunt, but not before an Oklahoma couple was killed.
The escape and murders that followed raised some serious questions about private prison safety standards and whether new policies should be put in place to prevent prison breaks from happening again.
Two years later, Arizona lawmakers have decided to go in a different direction.
Buried in the $8.6 billion budget proposal passed at the state Capitol this week is a plan to "eliminate the requirement for a quality and cost review of private prison contracts."
It means there would no longer be an annual review of how private prisons operate.
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Great idea. Handle privatized prisons the same way they handle privatized neighborhoods: no oversight. That way, the private contractors can claim that privatization is a huge success. Maybe Zogby could do a quick poll...
Oh, and guess what the last study found: "That study found that in some cases private prisons cost taxpayers more than state-run facilities."
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