Sacramento area officials explore using eminent domain to aid underwater homeowners - Real Estate - The Sacramento Bee: Sacramento and Elk Grove officials are exploring a controversial plan to use their powers of eminent domain to seize underwater mortgages from private investors and slash the amounts borrowers owe.
The proposal, pushed by a San Francisco-based group of financiers called Mortgage Resolution Partners, is meant to alleviate the drag on local economies of thousands of homes worth far less than buyers paid. It's also meant to turn a handsome profit for investors who would advance the vast sums needed to buy the mortgages.
The proposal has infuriated opponents in the mortgage industry. They call it an illegal use of eminent domain, a power that gives government the right to seize property for the public good while paying just compensation.
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More California municipalities ponder cramdown by condemnation.
Saturday, August 11, 2012
Friday, August 10, 2012
HOA Hall of shame president facing state charges - www.ktnv.com
HOA Hall of shame president facing state charges - www.ktnv.com:
Now, the state has formally accused Joe Bitsky and his wife, Barbara, of "failing to act in the best interests of the association for reasons of self-interest, gain and revenge." Bitsky himself is accused of "incompetence and intentional wrongdoing." And both are charged with "willful and intentional misuse of association money."
-------------------
Thanks to Rodney Gray for this link. This situation has been simmering for a long time.
Now, the state has formally accused Joe Bitsky and his wife, Barbara, of "failing to act in the best interests of the association for reasons of self-interest, gain and revenge." Bitsky himself is accused of "incompetence and intentional wrongdoing." And both are charged with "willful and intentional misuse of association money."
-------------------
Thanks to Rodney Gray for this link. This situation has been simmering for a long time.
Wednesday, August 08, 2012
State Senator Mike Bennett meets with frustrated Willowbrook homeowners | wtsp.com
State Senator Mike Bennett meets with frustrated Willowbrook homeowners | wtsp.com: LAKEWOOD RANCH, Florida -- Dozens of homeowners in a Lakewood Ranch community met with State Senator Mike Bennett Wednesday night to talk about the issues they've had with the construction of their homes.
Residents in the Willowbrook subdivision said they are dealing with shoddy construction and blame the builder, KB Home. According to homeowners, for years they've struggled with mold, gaping holes, and rotted wood. Some have not had any work done. Of those who have had work done, many say the problems still exist. Manatee County has posted "potential hazard" signs on a number of units in the subdivision.
Over the weekend, homeowners mailed letters to KB Home and also to lawmakers. The meeting was a result of that, with Senator Bennett receiving about 20 to 30 letters.
--------------
Yet another condo project that gets along with water about as well as Preparation H with hemorrhoids.
Residents in the Willowbrook subdivision said they are dealing with shoddy construction and blame the builder, KB Home. According to homeowners, for years they've struggled with mold, gaping holes, and rotted wood. Some have not had any work done. Of those who have had work done, many say the problems still exist. Manatee County has posted "potential hazard" signs on a number of units in the subdivision.
Over the weekend, homeowners mailed letters to KB Home and also to lawmakers. The meeting was a result of that, with Senator Bennett receiving about 20 to 30 letters.
--------------
Yet another condo project that gets along with water about as well as Preparation H with hemorrhoids.
Tuesday, August 07, 2012
Owner of First National Center in Oklahoma City pleads guilty to embezzlement, faces up to 10-year prison sentence | NewsOK.com
Owner of First National Center in Oklahoma City pleads guilty to embezzlement, faces up to 10-year prison sentence | NewsOK.com
Aaron Yashouafar, owner of Oklahoma City's landmark First National Center, will have to pay $1 million to tenants of a Nevada condominium complex and faces up to 10 years in prison after pleading guilty to one felony count of embezzlement. The plea comes as Yashouafar faces an Aug. 17 “final” deadline to pay $12 million to Capmark Group to retain control of First National Center, and follows a string of foreclosures, bankruptcies and controversies involving properties owned by his investment groups.
--------------------
Thanks to Rodney Gray for this link.
Aaron Yashouafar, owner of Oklahoma City's landmark First National Center, will have to pay $1 million to tenants of a Nevada condominium complex and faces up to 10 years in prison after pleading guilty to one felony count of embezzlement. The plea comes as Yashouafar faces an Aug. 17 “final” deadline to pay $12 million to Capmark Group to retain control of First National Center, and follows a string of foreclosures, bankruptcies and controversies involving properties owned by his investment groups.
--------------------
Thanks to Rodney Gray for this link.
Saturday, August 04, 2012
Immigrants prove big business for prison companies
breaking news - national news - world news - azcentral.com
MIAMI (AP) -- Locking up illegal immigrants has grown profoundly lucrative for the private prisons industry, a reliable pot of revenue that helped keep some of the biggest companies in business. And while nearly half of the 400,000 immigrants held annually are housed in private facilities, the federal government - which spends $2 billion a year on keeping those people in custody - says it isn't necessarily cheaper to outsource the work, a central argument used for privatization in the first place...A decade ago, just 10 percent of the beds in the nation's civil detention system were in private facilities with little federal oversight. Now, about half the beds are part of a sprawling, private system, largely controlled by just three companies: Corrections Corporation of America, The GEO Group, and Management and Training Corp...At the same time, the three businesses have spent at least $45 million combined on campaign donations and lobbyists at the state and federal level in the last decade, the AP found.
------------------------
As I keep saying, it often turns out that privatization is not cheaper than public provision of services. And in the case of prison companies and defense contractors, and HOA/condo service providers, privatization leads to the creation of powerful interest groups that lobby for expansion and deregulation of the privatization programs from which they profit. And the whole privatization effort is supported ideologically by anti-government rhetoric, especially the bogus claim that public sector service provision is inherently inefficient, government employees are lazy and overprivileged, and the so-called private sector is vastly superior in every way, if only it could be completely deregulated. That anybody can still belief this nonsense after deregulation killed the S&L industry in the 1980s and caused the financial sector meltdown of 2008 is a tribute to the power of propaganda.
MIAMI (AP) -- Locking up illegal immigrants has grown profoundly lucrative for the private prisons industry, a reliable pot of revenue that helped keep some of the biggest companies in business. And while nearly half of the 400,000 immigrants held annually are housed in private facilities, the federal government - which spends $2 billion a year on keeping those people in custody - says it isn't necessarily cheaper to outsource the work, a central argument used for privatization in the first place...A decade ago, just 10 percent of the beds in the nation's civil detention system were in private facilities with little federal oversight. Now, about half the beds are part of a sprawling, private system, largely controlled by just three companies: Corrections Corporation of America, The GEO Group, and Management and Training Corp...At the same time, the three businesses have spent at least $45 million combined on campaign donations and lobbyists at the state and federal level in the last decade, the AP found.
------------------------
As I keep saying, it often turns out that privatization is not cheaper than public provision of services. And in the case of prison companies and defense contractors, and HOA/condo service providers, privatization leads to the creation of powerful interest groups that lobby for expansion and deregulation of the privatization programs from which they profit. And the whole privatization effort is supported ideologically by anti-government rhetoric, especially the bogus claim that public sector service provision is inherently inefficient, government employees are lazy and overprivileged, and the so-called private sector is vastly superior in every way, if only it could be completely deregulated. That anybody can still belief this nonsense after deregulation killed the S&L industry in the 1980s and caused the financial sector meltdown of 2008 is a tribute to the power of propaganda.
Manassas Park burdened by debt from housing bust - The Washington Post
Manassas Park burdened by debt from housing bust - The Washington Post
"Over a little more than a decade, the tiny city of Manassas Park — population 15,000 — replaced, refurbished or added onto nearly every public building in its 2.5-square-mile confines. It built a fire station, police station and community center. It expanded all of its schools. And it paid for the nearly $130 million tab with borrowed money. But even before the last brick was laid, the housing market in Manassas Park crashed, sending one in four homeowners into foreclosure and leaving many others underwater on their mortgages. Median home prices tumbled as much as 60 percent. Property tax revenue fell off a cliff. By the time the $20 million community center was finished in 2010, the city was in a position familiar to millions of Americans: digging its way out of debt...Cities across the country are in similar straits, mired in the long tail of a historic housing meltdown and recession. Many will be coping with the financial fallout of the bust for years to come, even as the housing market recovers, said Michael Pagano, a municipal finance expert at the University of Illinois at Chicago."
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And this little Virginia municipality is in big financial trouble. If I understand this correctly, it is sort of in but not part of Prince William County, because it is an "independent city," which is a strange entity of which only 42 exist in the US. All but three are in Virginia. The other three are Baltimore (MD), St. Louis (MO), and Carson City (NV).
"Over a little more than a decade, the tiny city of Manassas Park — population 15,000 — replaced, refurbished or added onto nearly every public building in its 2.5-square-mile confines. It built a fire station, police station and community center. It expanded all of its schools. And it paid for the nearly $130 million tab with borrowed money. But even before the last brick was laid, the housing market in Manassas Park crashed, sending one in four homeowners into foreclosure and leaving many others underwater on their mortgages. Median home prices tumbled as much as 60 percent. Property tax revenue fell off a cliff. By the time the $20 million community center was finished in 2010, the city was in a position familiar to millions of Americans: digging its way out of debt...Cities across the country are in similar straits, mired in the long tail of a historic housing meltdown and recession. Many will be coping with the financial fallout of the bust for years to come, even as the housing market recovers, said Michael Pagano, a municipal finance expert at the University of Illinois at Chicago."
------------------
And this little Virginia municipality is in big financial trouble. If I understand this correctly, it is sort of in but not part of Prince William County, because it is an "independent city," which is a strange entity of which only 42 exist in the US. All but three are in Virginia. The other three are Baltimore (MD), St. Louis (MO), and Carson City (NV).
Friday, August 03, 2012
HOAs file hundreds of foreclosures for unpaid dues
Charleston Regional Business Journal | Charleston, SC
An historical review on HOA foreclosures Charleston County, South Carolina looking back nearly two decades. The bottom graph shows the collateral damage the residential real estate meltdown and subsequent recession had on HOA assessments. And this is just a single county in a single state. Imagine what it would look like if all of Privatopia were included.
An historical review on HOA foreclosures Charleston County, South Carolina looking back nearly two decades. The bottom graph shows the collateral damage the residential real estate meltdown and subsequent recession had on HOA assessments. And this is just a single county in a single state. Imagine what it would look like if all of Privatopia were included.
 |
Homeowners associations in Charleston County have filed hundreds of foreclosures during the past two decades for unpaid dues, meanwhile no government regulates the foreclosure process used by associations. |
Manatee homeowners say their condos are falling apart
Manatee homeowners say their condos are falling apart
MANATEE COUNTY, Fla. - The problems started with a leak inside his new condo. Now Armando Oyola-Delgado lives like he's in a hospital contamination zone.
"It actually is so the mold doesn't cross into here," he said, unzipping a plastic sheet that hangs at the sliding glass doors inside his condo.
But the worst part of it is beyond the curtain on his back deck.
"I went through the floor right there," said Oyola-Delgado pointing upwards where he says he stepped through the ceiling from the 2 nd floor.
-----------------
Why is it that water is to condos like Preparation H to hemorrhoids? I suggest a Nobel prize for whomever designs the water and mold proof condominium.
MANATEE COUNTY, Fla. - The problems started with a leak inside his new condo. Now Armando Oyola-Delgado lives like he's in a hospital contamination zone.
"It actually is so the mold doesn't cross into here," he said, unzipping a plastic sheet that hangs at the sliding glass doors inside his condo.
But the worst part of it is beyond the curtain on his back deck.
"I went through the floor right there," said Oyola-Delgado pointing upwards where he says he stepped through the ceiling from the 2 nd floor.
-----------------
Why is it that water is to condos like Preparation H to hemorrhoids? I suggest a Nobel prize for whomever designs the water and mold proof condominium.
In-Home Child Care Vs. Homeowner's Association
In-Home Child Care Vs. Homeowner's Association
This case is going all the way to the Nebraska Supreme Court.
This case is going all the way to the Nebraska Supreme Court.
Friday, July 27, 2012
Woman fights HOA to keep home after $589K of invalid fines | WCNC.com Charlotte
Woman fights HOA to keep home after $589K of invalid fines | WCNC.com Charlotte: North Carolina is at a tipping point for homeowners associations. The number of homeowners living in neighborhoods governed by HOAs is now greater than those who live outside those neighborhoods. The story of how Wilfong came close to losing her home illustrates why HOA battles have become personal.
It also shows lawmakers have not heard the last of the bitterly divisive issues that pit neighbor against neighbor with attorneys on all sides. Her lawsuit opens a window on HOAs: Quasi-governmental associations that carry the big stick of foreclosure and are drawing scrutiny from state lawmakers.
“They can ruin you,” said Wilfong.
-----------------
Another HOA horror story to help spur yet another round of HOA legislative reform efforts. As Shu Bartholomew says, "And the beat goes on."
It also shows lawmakers have not heard the last of the bitterly divisive issues that pit neighbor against neighbor with attorneys on all sides. Her lawsuit opens a window on HOAs: Quasi-governmental associations that carry the big stick of foreclosure and are drawing scrutiny from state lawmakers.
“They can ruin you,” said Wilfong.
-----------------
Another HOA horror story to help spur yet another round of HOA legislative reform efforts. As Shu Bartholomew says, "And the beat goes on."
From CCHAL: CID promotion and the California foreclosure debacle
This just in from the Center for California Homeowner Association Law--for years I have been posing the question, "What are the long-term consequences to municipalities of promoting CID construction?" This post from Marjorie Murray is suggestive of one possible answer:
-------------------------
Evan:
Realty Trac has posted its report on foreclosure filings (Notices of Default) across the country, and once again California leads the pack.
Note that six of the ten cities/counties with the greatest number of NODs are in the Central Valley, which are now over-run with common interest developments. Why? Because that's where vast tracts of land exist: land formerly dedicated to almonds, cotton, alfalfa and other crops.
Not long ago, the Center for California Homeowner Association Law researched, by county, the number of CIDs built in the Central Valley in the last decade. The growth has been phenomenal.
After approving dozens of huge planned unit developments in the past ten years, Stockton (San Joaquin County) went on a spending spree in anticipation of the tax revenue it believed CIDs would generate" property taxes, sales taxes, state taxes based on population. This was wishful thinking. As readers of your blog know, the City of Stockton just filed for bankruptcy.
I won't enumerate all the public policy issues generated by this growth in the Central Valley, but two of them are worth listing: the demand for water by huge new subdivisions and the substitution of CIDs for agriculture in the California economy. No state agency has examined these key policy issues.
Here's the Huffington Post story on the California foreclosure debacle.
http://www.huffingtonpost.com/2012/07/26/california-foreclosures-c_n_1705934.html?ir=San+Francisco&ref=topbar
Marjorie Murray, President
Center for California Homeowner Association Law
www.calhomelaw.org
3758 Grand Ave., Suite 56
Oakland, California 94610
mmurray@calhomelaw.org
Realty Trac has posted its report on foreclosure filings (Notices of Default) across the country, and once again California leads the pack.
Note that six of the ten cities/counties with the greatest number of NODs are in the Central Valley, which are now over-run with common interest developments. Why? Because that's where vast tracts of land exist: land formerly dedicated to almonds, cotton, alfalfa and other crops.
Not long ago, the Center for California Homeowner Association Law researched, by county, the number of CIDs built in the Central Valley in the last decade. The growth has been phenomenal.
After approving dozens of huge planned unit developments in the past ten years, Stockton (San Joaquin County) went on a spending spree in anticipation of the tax revenue it believed CIDs would generate" property taxes, sales taxes, state taxes based on population. This was wishful thinking. As readers of your blog know, the City of Stockton just filed for bankruptcy.
I won't enumerate all the public policy issues generated by this growth in the Central Valley, but two of them are worth listing: the demand for water by huge new subdivisions and the substitution of CIDs for agriculture in the California economy. No state agency has examined these key policy issues.
Here's the Huffington Post story on the California foreclosure debacle.
http://www.huffingtonpost.com/2012/07/26/california-foreclosures-c_n_1705934.html?ir=San+Francisco&ref=topbar
Marjorie Murray, President
Center for California Homeowner Association Law
www.calhomelaw.org
3758 Grand Ave., Suite 56
Oakland, California 94610
mmurray@calhomelaw.org
Thursday, July 26, 2012
Robert L. Borosage: Mitt Romney: The Gated Candidate
Robert L. Borosage: Mitt Romney: The Gated Candidate
The wealthiest Americans often choose to live in gated communities, designed to shield them from the intrusion of those Ann Romney calls "you people."
Now, Mitt Romney is applying that same notion to his campaign for the presidency. He's offering Americans a gated candidate, with whole areas of his record walled off to keep "you people" from knowing about them.
--------------------
And now Romney is self-immolating in his European tour, having made a complete ass of himself in London. But here at home, in the land of the blind, he is neck and neck with President Obama, thanks to to Fox News and AM talk radio. He is popular with people who don't believe in evolution, think the President was born in Kenya, and are convinced that if they had been in that theater in Aurora they would have taken care of the shooter. In reality, at best they would have shot themselves in the butt. At worst they would have killed an innocent bystander.
From CCHAL: request for feedback on rural CID situation
Just received this post from Marjorie Murray, President of the Center for California Homeowner Association Law, that I am passing along to all per her request. It is an interesting situation and I think many of you may have some thoughts to contribute:
-----------------------------------------------------
Evan: We've had many conversations about how CIDs function
as local governments (without the restraints we expect of local
government.) But this query (below) illustrates too well that California
local governments are going a step further: they are shifting costs to
homeowners that they -- city councils and county supervisors -- don't want to
bear. No doubt this was always true, but I think the practice may be
accelerating, given the budget crises in every level of California government.
Please post the query (below); we would appreciate reader feedback on this homeowner dilemma.
Marjorie Murray, President
Center for California Homeowner Association Law
www.calhomelaw.org
***************************************************************************************************************************************************
Please post the query (below); we would appreciate reader feedback on this homeowner dilemma.
Marjorie Murray, President
Center for California Homeowner Association Law
www.calhomelaw.org
***************************************************************************************************************************************************
Here’s
a troubling question from homeowners in a rural California county.
Their
association is in a national forest. It owns its own water system: a
complex network of tanks and pipes carrying water throughout the subdivision to
each home. (There is no supply of public water to the
subdivision.) The pipes are buried beneath the subdivision’s roads.
The
subdivision roads, however, are NOT owned by the association. They are
owned – but poorly maintained -- by the county. “Poorly maintained” means
the county will occasionally fill some of the potholes, but only if the
association begs county public works.
The
roads are public, meaning they bear traffic from campers, SUVs, and HUMMERS on
their way to campgrounds in the forest. The weight of these sport
vehicles damages the roads, but most of the damage is inflicted by logging
trucks carrying their heavy loads of pine and redwoods out of the forest.
The
traffic damages not only the roads, but also the association’s water system
beneath them. A proposal is now before the membership to drain its entire
reserve account to repair the water system damaged by the traffic and to repair
the roads, which will remain open to public -- and to future damage.
So…who
should pay for this half million dollar project and future maintenance?
The county (because these are public roads)? The trucking
companies? The association (because it’s their water system at risk)?
This
scenario is a good example of the quasi-governmental nature of common interest
developments: they provide services that local governments (counties and water
districts in this case) used to provide. With one big difference: the services
are now privately financed – by homeowners.
So
let us know what your think about the homeowners’ quandary….
CCHAL
NewsBrief
July
26, 2012, copyright
Wednesday, July 25, 2012
HOA boards are wild card in litigation game, author says - News - ReviewJournal.com
HOA boards are wild card in litigation game, author says - News - ReviewJournal.com
And that author is me. The article is about the construction defect game.
And that author is me. The article is about the construction defect game.
$140 sewer bill turns into foreclosure notice and $50,000 tab for homeowner | The Sideshow - Yahoo! News
$140 sewer bill turns into foreclosure notice and $50,000 tab for homeowner | The Sideshow - Yahoo! News: Dominick Vulpis admits he had an outstanding $140 sewage bill. But when that bill went unpaid for four years, the $140 bill turned into a home foreclosure notice and $50,000 in debt.
MSNBC reports that Middletown, N.J., turned over the utility bill to Approved Realty Group, an investment company. The practice is far from unheard of. Private companies buy up existing debts from local governments and then pursue the responsible parties, charging interest and fees. Several states have placed limits on the amount of money these private companies can charge for unpaid public utility bills.
--------------
Another example of local governments emulating HOAs. Privatize public debt and pay the debt collection company and legal counsel a handsome fee for their services. In this case, an astonishing multiple of 268 times the size of the underlying delinquent sewer bill.
MSNBC reports that Middletown, N.J., turned over the utility bill to Approved Realty Group, an investment company. The practice is far from unheard of. Private companies buy up existing debts from local governments and then pursue the responsible parties, charging interest and fees. Several states have placed limits on the amount of money these private companies can charge for unpaid public utility bills.
--------------
Another example of local governments emulating HOAs. Privatize public debt and pay the debt collection company and legal counsel a handsome fee for their services. In this case, an astonishing multiple of 268 times the size of the underlying delinquent sewer bill.
Tuesday, July 24, 2012
Dozens of Magnolia residents threatened with foreclosure - Houston weather, traffic, news | FOX 26 | MyFoxHouston
Dozens of Magnolia residents threatened with foreclosure - Houston weather, traffic, news | FOX 26 | MyFoxHouston
But this summer's threat to take away homes in the Remington Forest subdivision has a face and a name: Michael Fitzmaurice, the subdivision's developer and president of the Remington Forest Homeowners Association....Approximately two dozen Remington Forest homeowners gathered to share their concerns over the growing number of liens Fitzmaurice has threatened to file against them or their neighbors. "He's also threatening everybody," homeowner Debbie Sloan said. "I mean I can't tell you how many people I've talked to that have already gotten a notice that have already paid their dues but they're getting notices they haven't paid their dues."
"We lost everything in the fire, so he thinks we have no records, we can't trace it, so he can come back and say hey you didn't pay back in 2003, 2004, 2005 and 2006," homeowner Shannon Montealvo said. "He thinks we can't show the records to prove we did pay."
Public records show that in 1992, Fitzmaurice pleaded guilty to numerous counts of felony grand theft in Florida. He was sentenced to three and a half years in prison.
Read more: http://www.myfoxhouston.com/story/19094372/2012/07/23/dozens-of-magnolia-residents-threatened-with-foreclosure#ixzz21Y9qz5BZ
-----------------------
Thanks to Beanie Adolph for this link.
But this summer's threat to take away homes in the Remington Forest subdivision has a face and a name: Michael Fitzmaurice, the subdivision's developer and president of the Remington Forest Homeowners Association....Approximately two dozen Remington Forest homeowners gathered to share their concerns over the growing number of liens Fitzmaurice has threatened to file against them or their neighbors. "He's also threatening everybody," homeowner Debbie Sloan said. "I mean I can't tell you how many people I've talked to that have already gotten a notice that have already paid their dues but they're getting notices they haven't paid their dues."
"We lost everything in the fire, so he thinks we have no records, we can't trace it, so he can come back and say hey you didn't pay back in 2003, 2004, 2005 and 2006," homeowner Shannon Montealvo said. "He thinks we can't show the records to prove we did pay."
Public records show that in 1992, Fitzmaurice pleaded guilty to numerous counts of felony grand theft in Florida. He was sentenced to three and a half years in prison.
Read more: http://www.myfoxhouston.com/story/19094372/2012/07/23/dozens-of-magnolia-residents-threatened-with-foreclosure#ixzz21Y9qz5BZ
-----------------------
Thanks to Beanie Adolph for this link.
The Ultimate Mitt Romney Flip-Flop Collection - YouTube
The Ultimate Mitt Romney Flip-Flop Collection - YouTube
I don't usually post links to general political things, but this 20 minute video collection is so revealing that I think everybody who is going to vote on November 6 should watch it and think about what it means. In a way, Romney is perfectly consistent: he always says whatever is most advantageous to him at the moment, regardless of what he has said in the past. Abortion, immigration, the bailouts, gun control, blind trusts, education policy, raising the minimum wage, gay and lesbian rights, climate change...it just goes on and on for 20 minutes.
I don't usually post links to general political things, but this 20 minute video collection is so revealing that I think everybody who is going to vote on November 6 should watch it and think about what it means. In a way, Romney is perfectly consistent: he always says whatever is most advantageous to him at the moment, regardless of what he has said in the past. Abortion, immigration, the bailouts, gun control, blind trusts, education policy, raising the minimum wage, gay and lesbian rights, climate change...it just goes on and on for 20 minutes.
Number of California homes entering foreclosure falls to 2007 levels - latimes.com
Number of California homes entering foreclosure falls to 2007 levels - latimes.com
DataQuick President John Walsh said in a statement that it was unclear whether the drop in the number of homes entering the foreclosure process was a sign that the worst was over or simply that the process itself had slowed.
“The foreclosure process has always been the sanitation department of the housing sector,” he said. “The question is whether these lower … numbers mean that there’s less distress to process, or if we’re just seeing distress get processed at a slower pace.”
The number of homes being lost to foreclosure plunged. The number of trustee deeds, which are the public documents filed when a foreclosure is completed, fell 27.8% from the prior quarter and were down 48.5% from the same period as last year. A total of 21,851 deeds were filed last quarter.
------------
So maybe it's good and maybe it isn't. Thanks to Fred Pilot for the link.
DataQuick President John Walsh said in a statement that it was unclear whether the drop in the number of homes entering the foreclosure process was a sign that the worst was over or simply that the process itself had slowed.
“The foreclosure process has always been the sanitation department of the housing sector,” he said. “The question is whether these lower … numbers mean that there’s less distress to process, or if we’re just seeing distress get processed at a slower pace.”
The number of homes being lost to foreclosure plunged. The number of trustee deeds, which are the public documents filed when a foreclosure is completed, fell 27.8% from the prior quarter and were down 48.5% from the same period as last year. A total of 21,851 deeds were filed last quarter.
------------
So maybe it's good and maybe it isn't. Thanks to Fred Pilot for the link.
Monday, July 23, 2012
Illegal Front Yard Garden: Canadian Couple's Kitchen Garden Targeted By Authorities
Illegal Front Yard Garden: Canadian Couple's Kitchen Garden Targeted By Authorities
"Take a look at Josée Landry and Michel Beauchamp's gorgeous front yard kitchen garden in Drummondville, Quebec. The cucumbers, tomatoes, zucchinis, beets, onions, and brussels sprouts and other vegetables grown by the couple helped Beauchamp lose 75 pounds, and Landry 25.
"The only problem? It's illegal."
-------------------------
"Take a look at Josée Landry and Michel Beauchamp's gorgeous front yard kitchen garden in Drummondville, Quebec. The cucumbers, tomatoes, zucchinis, beets, onions, and brussels sprouts and other vegetables grown by the couple helped Beauchamp lose 75 pounds, and Landry 25.
"The only problem? It's illegal."
-------------------------
Saturday, July 21, 2012
Now It's the Big Banks That Are Getting Foreclosed On - CNBC
Now It's the Big Banks That Are Getting Foreclosed On - CNBC
"These associations have been hit hard by the housing crisis, as many delinquent borrowers stopped paying their monthly HOA dues. In some cases, HOA’s, which do have the authority in many states, managed to foreclose on properties even before the banks, by using the back dues as liens. Now the homeowner associations are taking it one step further. They are going after the banks, claiming that several of the largest lenders are not paying monthly HOA/condo fees on homes they’ve repossessed and now hold as bank-owned properties (Real Estate Owned, or commonly called REO’s)."
----------------------
Apparently the reporter just learned that HOAs are foreclosing on banks that don't pay their assessments. This isn't new, but the article has some good detail. Thanks to Shu Bartholomew for the link.
"These associations have been hit hard by the housing crisis, as many delinquent borrowers stopped paying their monthly HOA dues. In some cases, HOA’s, which do have the authority in many states, managed to foreclose on properties even before the banks, by using the back dues as liens. Now the homeowner associations are taking it one step further. They are going after the banks, claiming that several of the largest lenders are not paying monthly HOA/condo fees on homes they’ve repossessed and now hold as bank-owned properties (Real Estate Owned, or commonly called REO’s)."
----------------------
Apparently the reporter just learned that HOAs are foreclosing on banks that don't pay their assessments. This isn't new, but the article has some good detail. Thanks to Shu Bartholomew for the link.
Giving the green finger: Gardener who carved bush into rude gesture ordered to remove it | Mail Online
Giving the green finger: Gardener who carved bush into rude gesture ordered to remove it | Mail Online
"A gardener who carved a giant bush into a hand displaying a rude gesture has been ordered to remove it after being accused of committing a public order offence.
Richard Jackson has displayed the offending topiary, which shows the middle-finger sign, in his garden for the last eight years.
The 53-year-old has now been told by the council to alter it after a neighbour complained, but he has refused to comply."
---------------------------------------------
Thursday, July 19, 2012
Baltimore and the Libor scandal: 'We can't leave any money on the table' | Business | guardian.co.uk
Baltimore and the Libor scandal: 'We can't leave any money on the table' | Business | guardian.co.uk
"Baltimore is lead plaintiff in a class action lawsuit that alleges that banks including Barclays, Bank of America, HSBC, JP Morgan and UBS conspired to fix a set of key interest rates – the London Interbank Offered Rate, or Libor – costing the city millions in the process. So far, the Libor scandal has played out mostly under the radar in the US. But now it is gaining traction in Washington, and Baltimore's suit is putting a human face on a scandal legal experts predict could end up being the most costly of the credit crisis.
Firefighters, services for the elderly, school programmes – all these and more are being cut as a direct result of the actions of colluding bankers, Rawlings-Blake claims."
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Good thing we have the British press to tell us about the biggest banking scandal in the history of money. You have to hunt through the business section to find a word about it in US papers. No wonder people have stopped reading them. But at least we know all about Tom Cruise's divorce.
If you want to read more, check out Matt Taibbi on this, via Max Keiser.
"Baltimore is lead plaintiff in a class action lawsuit that alleges that banks including Barclays, Bank of America, HSBC, JP Morgan and UBS conspired to fix a set of key interest rates – the London Interbank Offered Rate, or Libor – costing the city millions in the process. So far, the Libor scandal has played out mostly under the radar in the US. But now it is gaining traction in Washington, and Baltimore's suit is putting a human face on a scandal legal experts predict could end up being the most costly of the credit crisis.
Firefighters, services for the elderly, school programmes – all these and more are being cut as a direct result of the actions of colluding bankers, Rawlings-Blake claims."
-------------
Good thing we have the British press to tell us about the biggest banking scandal in the history of money. You have to hunt through the business section to find a word about it in US papers. No wonder people have stopped reading them. But at least we know all about Tom Cruise's divorce.
If you want to read more, check out Matt Taibbi on this, via Max Keiser.
Tuesday, July 17, 2012
Marc Realty Residential sues to force several Columbia Gardens condo owners to sell - Residential News - Crain's Chicago Business
Marc Realty Residential sues to force several Columbia Gardens condo owners to sell - Residential News - Crain's Chicago Business
"A venture led by Marc Realty Residential LLC is trying to compel the owners of three condos in the Columbia Gardens building to sell their units to the venture, which took over 31 units in the project at 1615-25 W. Columbia Ave. from its developer last year. The building's condo association, which is controlled by the Marc venture, has sued the holdouts, citing language in the association's governing documents and state law that allow it to force them to sell if a supermajority of owners approve the sale of the entire building. The case highlights the problem facing many distressed-property investors that try to buy failed condo projects at a discount and then rent out the unsold units. Owning a rental building with some condos mixed in can be complicated, and many investors avoid such “fractured” projects entirely. Others look for ways to buy out existing condo owners after buying a big chunk of unsold units from the project's lender or developer. Marc tried that, but the three owners wouldn't go along, according to the lawsuit, filed last week in Cook County Circuit Court. The association argues that they must sell because the owners of 81.5 percent of the building's units voted to sell all the condos last year. Under the association's rules, it has the authority to sell the entire building if two-thirds of the property's units vote to approve the transaction, according to the complaint."
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Another example of forced sale in a seriously distressed condo project. This is the statute that Marc Realty is relying on:
(765 ILCS 605/15) (from Ch. 30, par. 315)
Sec. 15. Sale of property.
(a) Unless a greater percentage is provided for in the declaration or bylaws, and notwithstanding the provisions of Sections 13 and 14 hereof, a majority of the unit owners where the property contains 2 units, or not less than 66 2/3% where the property contains three units, and not less than 75% where the property contains 4 or more units may, by affirmative vote at a meeting of unit owners duly called for such purpose, elect to sell the property. Such action shall be binding upon all unit owners, and it shall thereupon become the duty of every unit owner to execute and deliver such instruments and to perform all acts as in manner and form may be necessary to effect such sale, provided, however, that any unit owner who did not vote in favor of such action and who has filed written objection thereto with the manager or board of managers within 20 days after the date of the meeting at which such sale was approved shall be entitled to receive from the proceeds of such sale an amount equivalent to the value of his interest, as determined by a fair appraisal, less the amount of any unpaid assessments or charges due and owing from such unit owner.
(b) If there is a disagreement as to the value of the interest of a unit owner who did not vote in favor of the sale of the property, that unit owner shall have a right to designate an expert in appraisal or property valuation to represent him, in which case, the prospective purchaser of the property shall designate an expert in appraisal or property valuation to represent him, and both of these experts shall mutually designate a third expert in appraisal or property valuation. The 3 experts shall constitute a panel to determine by vote of at least 2 of the members of the panel, the value of that unit owner's interest in the property.
(Source: P.A. 86-1156.)
"A venture led by Marc Realty Residential LLC is trying to compel the owners of three condos in the Columbia Gardens building to sell their units to the venture, which took over 31 units in the project at 1615-25 W. Columbia Ave. from its developer last year. The building's condo association, which is controlled by the Marc venture, has sued the holdouts, citing language in the association's governing documents and state law that allow it to force them to sell if a supermajority of owners approve the sale of the entire building. The case highlights the problem facing many distressed-property investors that try to buy failed condo projects at a discount and then rent out the unsold units. Owning a rental building with some condos mixed in can be complicated, and many investors avoid such “fractured” projects entirely. Others look for ways to buy out existing condo owners after buying a big chunk of unsold units from the project's lender or developer. Marc tried that, but the three owners wouldn't go along, according to the lawsuit, filed last week in Cook County Circuit Court. The association argues that they must sell because the owners of 81.5 percent of the building's units voted to sell all the condos last year. Under the association's rules, it has the authority to sell the entire building if two-thirds of the property's units vote to approve the transaction, according to the complaint."
--------------------------------
Another example of forced sale in a seriously distressed condo project. This is the statute that Marc Realty is relying on:
(765 ILCS 605/15) (from Ch. 30, par. 315)
Sec. 15. Sale of property.
(a) Unless a greater percentage is provided for in the declaration or bylaws, and notwithstanding the provisions of Sections 13 and 14 hereof, a majority of the unit owners where the property contains 2 units, or not less than 66 2/3% where the property contains three units, and not less than 75% where the property contains 4 or more units may, by affirmative vote at a meeting of unit owners duly called for such purpose, elect to sell the property. Such action shall be binding upon all unit owners, and it shall thereupon become the duty of every unit owner to execute and deliver such instruments and to perform all acts as in manner and form may be necessary to effect such sale, provided, however, that any unit owner who did not vote in favor of such action and who has filed written objection thereto with the manager or board of managers within 20 days after the date of the meeting at which such sale was approved shall be entitled to receive from the proceeds of such sale an amount equivalent to the value of his interest, as determined by a fair appraisal, less the amount of any unpaid assessments or charges due and owing from such unit owner.
(b) If there is a disagreement as to the value of the interest of a unit owner who did not vote in favor of the sale of the property, that unit owner shall have a right to designate an expert in appraisal or property valuation to represent him, in which case, the prospective purchaser of the property shall designate an expert in appraisal or property valuation to represent him, and both of these experts shall mutually designate a third expert in appraisal or property valuation. The 3 experts shall constitute a panel to determine by vote of at least 2 of the members of the panel, the value of that unit owner's interest in the property.
(Source: P.A. 86-1156.)
San Francisco Courthouse Strike Exposes Strain In City's Judicial System (PHOTOS)
San Francisco Courthouse Strike Exposes Strain In City's Judicial System (PHOTOS)
A strike at San Francisco Superior Court on Monday halted much of the city court's business as workers walked off the job demanding a resumption of labor negotiations that have been stalled since February.
Chants of "Rise up, shut it down, San Francisco's a union town," echoed off the walls of the Civic Center as hundreds of striking court workers, clad in purple Service Employees International Union T-shirts, carried signs slamming court officials for a slew of furlough days and five consecutive years without cost-of-living pay increases.
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Even the most basic functions of government are under major financial strain in California.
A strike at San Francisco Superior Court on Monday halted much of the city court's business as workers walked off the job demanding a resumption of labor negotiations that have been stalled since February.
Chants of "Rise up, shut it down, San Francisco's a union town," echoed off the walls of the Civic Center as hundreds of striking court workers, clad in purple Service Employees International Union T-shirts, carried signs slamming court officials for a slew of furlough days and five consecutive years without cost-of-living pay increases.
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Even the most basic functions of government are under major financial strain in California.
Monday, July 16, 2012
Bankruptcy choices highlight fiscal pain of cities nationwide - latimes.com
Bankruptcy choices highlight fiscal pain of cities nationwide - latimes.com
"It does not look pretty. It's not going to look pretty over the next three or four years," said Michael Pagano, dean of the College of Urban Planning and Public Affairs at the University of Illinois at Chicago. "It's a long-term structural problem, and cities need to think of new ways to collect resources to fuel their services, or they are only going to be in worse trouble."
Like hundreds of other cities around the country, Stockton, San Bernardino and Vallejo share a number of fundamental problems that drove their finances into the ground. Blue-collar cities with aging infrastructure, they have relatively poor populations. And they're saddled with ballooning pension and healthcare obligations for civic employees and retirees.
Then came the recession, and with it foreclosures, crashing property values and the disappearance of retailers that were vital to sales-tax revenue. Cities that had been scraping by suddenly found their bank accounts depleted and their budgets in a death spiral.
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My colleague Mike Pagano has it right. Cities that have already tried every trick they know, including using CIDs, are becoming insolvent. Finding new sources of revenue will not be an easy task.
"It does not look pretty. It's not going to look pretty over the next three or four years," said Michael Pagano, dean of the College of Urban Planning and Public Affairs at the University of Illinois at Chicago. "It's a long-term structural problem, and cities need to think of new ways to collect resources to fuel their services, or they are only going to be in worse trouble."
Like hundreds of other cities around the country, Stockton, San Bernardino and Vallejo share a number of fundamental problems that drove their finances into the ground. Blue-collar cities with aging infrastructure, they have relatively poor populations. And they're saddled with ballooning pension and healthcare obligations for civic employees and retirees.
Then came the recession, and with it foreclosures, crashing property values and the disappearance of retailers that were vital to sales-tax revenue. Cities that had been scraping by suddenly found their bank accounts depleted and their budgets in a death spiral.
--------------------------------------------
My colleague Mike Pagano has it right. Cities that have already tried every trick they know, including using CIDs, are becoming insolvent. Finding new sources of revenue will not be an easy task.
Sunday, July 15, 2012
Calif. cities eye plan to seize mortgages | AccessNorthGa
Calif. cities eye plan to seize mortgages | AccessNorthGa
Another story on the contemplated cramdown by condemnation scheme in Southern California's Inland (non) Empire.
Another story on the contemplated cramdown by condemnation scheme in Southern California's Inland (non) Empire.
Wells Fargo to pay $175 million to settle lending bias allegations - latimes.com
Wells Fargo to pay $175 million to settle lending bias allegations - latimes.com
Wells Fargo & Co.'s settlement of allegations that it overcharged minorities for home loans and wrongly steered them into subprime mortgages requires the bank to pay $125 million in damages, including about $10 million to African Americans and Latinos in the Los Angeles area.
The settlement, announced Thursday by theU.S. Justice Department, also requires the San Francisco company, by far the nation's largest home lender, to provide $50 million in down-payment assistance to residents of areas where the alleged discrimination had a significant effect.
Those regions include the San Francisco Bay Area and the Inland Empire but not Los Angeles County, where Wells Fargo already has provided an assistance plan for buyers.
The $175-million total is the second-largest fair-lending settlement by the civil rights arm of the Justice Department. The largest, reached in December, requiresBank of America Corp.to pay $335 million to settle claims against Countrywide Financial Corp., the aggressive Calabasas lender it acquired in 2008.
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And on it goes.
Wells Fargo & Co.'s settlement of allegations that it overcharged minorities for home loans and wrongly steered them into subprime mortgages requires the bank to pay $125 million in damages, including about $10 million to African Americans and Latinos in the Los Angeles area.
The settlement, announced Thursday by theU.S. Justice Department, also requires the San Francisco company, by far the nation's largest home lender, to provide $50 million in down-payment assistance to residents of areas where the alleged discrimination had a significant effect.
Those regions include the San Francisco Bay Area and the Inland Empire but not Los Angeles County, where Wells Fargo already has provided an assistance plan for buyers.
The $175-million total is the second-largest fair-lending settlement by the civil rights arm of the Justice Department. The largest, reached in December, requiresBank of America Corp.to pay $335 million to settle claims against Countrywide Financial Corp., the aggressive Calabasas lender it acquired in 2008.
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And on it goes.
Analysis: In the U.S. housing market, recovery or Lost Decade? - Yahoo! News
Analysis: In the U.S. housing market, recovery or Lost Decade? - Yahoo! News
And the answer is: Lost Decade. This is a detailed analysis of the situation. And here is one big factor: banks are preventing people from buying homes by the simple expedient of not making loans except to near-zero-risk borrowers, and the federal government is letting them run the show:
"In nearly every city, it now costs less to own than to rent.
But many would-be homeowners cannot buy. Lenders have virtually locked them out of the market by denying them mortgages, according to statistics from the Federal Housing Administration and a recent Morgan Stanley research report.
In May, consumers able to close on a mortgage had, on average, a near-perfect credit score. They could afford a 19 percent down payment on their new home. And they were still on track to spend no more 24 percent of their income on their new house, according to the Ellie Mae Origination Insight Report.
"Most of the population can't meet current mortgage underwriting standards," says trade publication Inside Mortgage Finance founder Guy Cecala. "They're getting eliminated before they even get to the door."
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Thanks to Fred Pilot for this thoroughly depressing link.
And the answer is: Lost Decade. This is a detailed analysis of the situation. And here is one big factor: banks are preventing people from buying homes by the simple expedient of not making loans except to near-zero-risk borrowers, and the federal government is letting them run the show:
"In nearly every city, it now costs less to own than to rent.
But many would-be homeowners cannot buy. Lenders have virtually locked them out of the market by denying them mortgages, according to statistics from the Federal Housing Administration and a recent Morgan Stanley research report.
In May, consumers able to close on a mortgage had, on average, a near-perfect credit score. They could afford a 19 percent down payment on their new home. And they were still on track to spend no more 24 percent of their income on their new house, according to the Ellie Mae Origination Insight Report.
"Most of the population can't meet current mortgage underwriting standards," says trade publication Inside Mortgage Finance founder Guy Cecala. "They're getting eliminated before they even get to the door."
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Thanks to Fred Pilot for this thoroughly depressing link.
Saturday, July 14, 2012
Tenants face losing water if owners don't pony up for bill | Local & Regional | KATU.com - Portland News, Sports, Traffic Weather and Breaking News - Portland, Oregon
Tenants face losing water if owners don't pony up for bill | Local & Regional | KATU.com - Portland News, Sports, Traffic Weather and Breaking News - Portland, Oregon: Many people rent the town homes and pay their share of the water to landlords. Ultimately the bill is supposed to be paid by the homeowners association.
The owner of Leanette’s unit says she is paying her bills, but some other owners aren’t.
HOA members will not disclose who the deadbeat landlords are.
“I feel very disappointed about the situation happening over here,” said resident Jesus Amaro. “Some of us are paying our water bills and some are not.”
The owner of Leanette’s unit says she is paying her bills, but some other owners aren’t.
HOA members will not disclose who the deadbeat landlords are.
“I feel very disappointed about the situation happening over here,” said resident Jesus Amaro. “Some of us are paying our water bills and some are not.”
Keller homeowners say they've been shut out of association despite new state law | Arlingt...
Keller homeowners say they've been shut out of association despite new state law | Arlingt...: KELLER -- The Hidden Lakes Homeowners Association "fired" most of its volunteers without warning and is barring residents from board meetings after the developer began taking an active role on the board, some residents say.
Those residents also complain that the developer is using HOA money to pay for landscaping services from a developer-owned company instead of seeking bids and that it is using association money to make repairs that are the developer's responsibility.
And that may all be legal despite a new state law reining in homeowners associations.
Those residents also complain that the developer is using HOA money to pay for landscaping services from a developer-owned company instead of seeking bids and that it is using association money to make repairs that are the developer's responsibility.
And that may all be legal despite a new state law reining in homeowners associations.
Don't buy investor-government scheme - SFGate
Don't buy investor-government scheme - SFGate: Mortgage Resolution Partners brass argue that the power of eminent domain is well established, as long as local governments can point to a solid public use - in this case, preventing foreclosures.
Cornell law Professor Robert Hockett agrees. In the infamous 2005 Kelo decision, the U.S. Supreme Court ruled that local governments could seize private property for other private entities if there is a public purpose. In that case, New London, Conn., took the waterfront home of Susette Kelo as part of a redevelopment project anchored around Pfizer Inc.
Dana Berliner, an attorney for the Institute of Justice, which represented Kelo, said she believes the California Supreme Court would overturn any law allowing governments to seize mortgages because "it's a scheme by one group of securities investors to steal a bunch of money from another group of securities investors."
But what if Berliner is wrong?
"In California, there'll be very little that (governments) can't do," she said. "It would mean that eminent domain can be used to take from one group of people and give to another group of people to make a profit."
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This novel use of eminent domain (previously blogged here by the perfessor and myself) will certainly generate litigation testing its limits as well as legislation to bar it if ultimately employed. From a practical standpoint, it's far from clear local governments using their powers of condemnation to cram down overmortaged properties will really solve their fiscal woes. They have no control over the price of real estate and continued real estate deflation could undermine any perceived benefit.
There's a cynical adage that states, "privatize the gains, socialize the losses." This tactic is the epitome of that.
Cornell law Professor Robert Hockett agrees. In the infamous 2005 Kelo decision, the U.S. Supreme Court ruled that local governments could seize private property for other private entities if there is a public purpose. In that case, New London, Conn., took the waterfront home of Susette Kelo as part of a redevelopment project anchored around Pfizer Inc.
Dana Berliner, an attorney for the Institute of Justice, which represented Kelo, said she believes the California Supreme Court would overturn any law allowing governments to seize mortgages because "it's a scheme by one group of securities investors to steal a bunch of money from another group of securities investors."
But what if Berliner is wrong?
"In California, there'll be very little that (governments) can't do," she said. "It would mean that eminent domain can be used to take from one group of people and give to another group of people to make a profit."
-----------
This novel use of eminent domain (previously blogged here by the perfessor and myself) will certainly generate litigation testing its limits as well as legislation to bar it if ultimately employed. From a practical standpoint, it's far from clear local governments using their powers of condemnation to cram down overmortaged properties will really solve their fiscal woes. They have no control over the price of real estate and continued real estate deflation could undermine any perceived benefit.
There's a cynical adage that states, "privatize the gains, socialize the losses." This tactic is the epitome of that.
Friday, July 13, 2012
Tyler Berding: Ponzi Scheme?
Ponzi Scheme?
"So how is this similar to the plight of community associations? Simple. The developer of a project creates a reserve program based on the false assumption that most components of a building have an infinite service life and will never need repair or replacement. The early owners (investors) pay into the venture (community association budget) at lower than necessary assessment rates. That not only attracts buyers to the initial sales offering but also, in turn attracts future buyers. Eventually the investors who are the owners when the underfunding is discovered are stuck with not only their share of the bill, but also the shares of all of the prior owners who underpaid their assessments for so many years and then sold off their interests. Not exactly a “Ponzi” scheme, but close."
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Tyler Berding shows how the reasons for recent municipal bankruptcy filings are structurally similar to the financial time bomb that is built into many community associations--a must-read. Thanks to Fred Pilot for the link.
"So how is this similar to the plight of community associations? Simple. The developer of a project creates a reserve program based on the false assumption that most components of a building have an infinite service life and will never need repair or replacement. The early owners (investors) pay into the venture (community association budget) at lower than necessary assessment rates. That not only attracts buyers to the initial sales offering but also, in turn attracts future buyers. Eventually the investors who are the owners when the underfunding is discovered are stuck with not only their share of the bill, but also the shares of all of the prior owners who underpaid their assessments for so many years and then sold off their interests. Not exactly a “Ponzi” scheme, but close."
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Tyler Berding shows how the reasons for recent municipal bankruptcy filings are structurally similar to the financial time bomb that is built into many community associations--a must-read. Thanks to Fred Pilot for the link.
California City Under Investigation Drained Reserve Funds - Bloomberg
California City Under Investigation Drained Reserve Funds - Bloomberg
Law enforcement officials are investigating possible crimes in San Bernardino’s city government, which almost drained special funds to prop up its budget.
The near-bankrupt state of the community of 209,000 east of Los Angeles came to light when a new finance director discovered that previous officials shifted money for workers-compensation and liability insurance to the general fund, said Andrea Travis- Miller, interim city manager.
“The city has relied on a whole variety of one-time measures to balance its budget,” Travis-Miller, who began her job in May, said yesterday. “There have been transfers to the general fund with the expectation that they would be repaid. That became difficult.”
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San Bernardino's fiscal crisis is looking more and more like a case of mismanagement occurring in hard economic times in which they lost property tax revenues and also face a huge pension obligation. Thanks to Fred Pilot for the link.
Law enforcement officials are investigating possible crimes in San Bernardino’s city government, which almost drained special funds to prop up its budget.
The near-bankrupt state of the community of 209,000 east of Los Angeles came to light when a new finance director discovered that previous officials shifted money for workers-compensation and liability insurance to the general fund, said Andrea Travis- Miller, interim city manager.
“The city has relied on a whole variety of one-time measures to balance its budget,” Travis-Miller, who began her job in May, said yesterday. “There have been transfers to the general fund with the expectation that they would be repaid. That became difficult.”
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San Bernardino's fiscal crisis is looking more and more like a case of mismanagement occurring in hard economic times in which they lost property tax revenues and also face a huge pension obligation. Thanks to Fred Pilot for the link.
Smoking Banned Inside Santa Monica Residences | NBC Southern California
Smoking Banned Inside Santa Monica Residences | NBC Southern California
"Smoking is already banned at beaches, parks, restaurants and near buildings in Santa Monica, but Tuesday night the city council sought to expand that prohibition and voted 4-2 to ban smoking for all new tenants of apartments and condos inside their residences – with one exception.
“It also requires existing residents to designate their units as smoking or non smoking and from then on it will be prohibited to smoke in a non smoking unit,” said Adam Radinksy, head of the Consumer Protection Unit in Santa Monica."
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With condo buildings and apartment buildings going non-smoking, it seems that the People's Republic of Santa Monica has pretty much banned smoking. I guess if you can afford a single-family home in Santa Monica you can post a sign and smoke your head off, but that's a pretty ritzy real estate market.
"Smoking is already banned at beaches, parks, restaurants and near buildings in Santa Monica, but Tuesday night the city council sought to expand that prohibition and voted 4-2 to ban smoking for all new tenants of apartments and condos inside their residences – with one exception.
“It also requires existing residents to designate their units as smoking or non smoking and from then on it will be prohibited to smoke in a non smoking unit,” said Adam Radinksy, head of the Consumer Protection Unit in Santa Monica."
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With condo buildings and apartment buildings going non-smoking, it seems that the People's Republic of Santa Monica has pretty much banned smoking. I guess if you can afford a single-family home in Santa Monica you can post a sign and smoke your head off, but that's a pretty ritzy real estate market.
Wednesday, July 11, 2012
Joe Nocera: Use eminent domain to take underwater mortgages
Housing’s Last Chance? - NYTimes.com
"It is well documented that underwater mortgages have a high likelihood of defaulting — and, eventually, being foreclosed on. It has also been clear for some time that the best way to keep troubled homeowners in their homes is by reducing the principal on their mortgages, thus lowering their debt burden and more closely aligning their mortgage with the actual value of the home. Which is why Greg Devereaux, the county’s chief executive officer, found himself listening intently when the folks from Mortgage Resolution Partners came knocking on his door. They had spent the previous year kicking around an intriguing idea: have localities buy underwater mortgages using their power of eminent domain — and then write the homeowner a new, reduced mortgage. It’s principal reduction using a stick instead of a carrot."
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This is a fascinating idea. More here.
"It is well documented that underwater mortgages have a high likelihood of defaulting — and, eventually, being foreclosed on. It has also been clear for some time that the best way to keep troubled homeowners in their homes is by reducing the principal on their mortgages, thus lowering their debt burden and more closely aligning their mortgage with the actual value of the home. Which is why Greg Devereaux, the county’s chief executive officer, found himself listening intently when the folks from Mortgage Resolution Partners came knocking on his door. They had spent the previous year kicking around an intriguing idea: have localities buy underwater mortgages using their power of eminent domain — and then write the homeowner a new, reduced mortgage. It’s principal reduction using a stick instead of a carrot."
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This is a fascinating idea. More here.
San Bernardino seeks bankruptcy protection - latimes.com
San Bernardino seeks bankruptcy protection - latimes.com
San Bernardino on Tuesday became the third California city in less than a month to seek bankruptcy protection, with officials saying the financial situation had become so dire that it could not cover payroll through the summer.
The unexpected vote came at the suggestion of the interim city manager, who said the city faces a $46-million deficit and depleted coffers...The city joins two others in California — Stockton and Mammoth Lakes — that have turned to bankruptcy in recent weeks to cope with their financial problems, albeit for different reasons."
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San Bernardino has a population of over 200,000. The situation there is complicated because there are several different contributing factors to their financial plight, including a drop in property tax revenue, pension costs, bad development decisions, etc.
San Bernardino on Tuesday became the third California city in less than a month to seek bankruptcy protection, with officials saying the financial situation had become so dire that it could not cover payroll through the summer.
The unexpected vote came at the suggestion of the interim city manager, who said the city faces a $46-million deficit and depleted coffers...The city joins two others in California — Stockton and Mammoth Lakes — that have turned to bankruptcy in recent weeks to cope with their financial problems, albeit for different reasons."
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San Bernardino has a population of over 200,000. The situation there is complicated because there are several different contributing factors to their financial plight, including a drop in property tax revenue, pension costs, bad development decisions, etc.
Herp Derp YouTube Comments | Tanner's Website
Herp Derp YouTube Comments | Tanner's Website
This is a YouTube extension that converts all comments to "herp derp."
This is a YouTube extension that converts all comments to "herp derp."
Tuesday, July 10, 2012
Excite News - Report: Some lose homes over as little as $400
Excite News - Report: Some lose homes over as little as $400
WASHINGTON (AP) - The elderly and other vulnerable homeowners are losing their homes because they owe as little as a few hundred dollars in back taxes, according to a report from a consumer group.
Outdated state laws allow big banks and other investors to reap windfall profits by buying the houses for a pittance and reselling them, the National Consumer Law Center said in a report being released Tuesday.
Local governments can seize and sell a home if the owner falls behind on property taxes and fees. The process helps governments make ends meet at a time when low property values and the weak economy are squeezing tax revenue.
But tax debts as small as $400 can cause people to lose their homes because of arcane laws and misinformation among consumers, says John Rao, the report's author and an attorney with NCLC.
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For those of us who know about condo/hoa foreclosure practices, this sort of thing is old news. The new part is that now tax farmers are doing it.
WASHINGTON (AP) - The elderly and other vulnerable homeowners are losing their homes because they owe as little as a few hundred dollars in back taxes, according to a report from a consumer group.
Outdated state laws allow big banks and other investors to reap windfall profits by buying the houses for a pittance and reselling them, the National Consumer Law Center said in a report being released Tuesday.
Local governments can seize and sell a home if the owner falls behind on property taxes and fees. The process helps governments make ends meet at a time when low property values and the weak economy are squeezing tax revenue.
But tax debts as small as $400 can cause people to lose their homes because of arcane laws and misinformation among consumers, says John Rao, the report's author and an attorney with NCLC.
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For those of us who know about condo/hoa foreclosure practices, this sort of thing is old news. The new part is that now tax farmers are doing it.
The Coasean Republic - Credit Slips
The Coasean Republic - Credit Slips
"At times I've joked to my classes about the possibility of a Coasean Republic, a state I call "Coase-istan" (or perhaps Kosistan), in which the entire world operates via private ordering. In Coase-istan, government does, well, nothing except put service provision out for private bids. Mail would be delivered only by private express companies like Fed-Ex. Prisons would be privately operated. Executions would be contracted out to the highest bidder. Food and drug safety would be policed solely by private litigation, which would, of course, all go to arbitration. Deposits would be privately insured, if at all. Taxes would be collected by tax farmers. The borders of the Coasean Republic would be protected by an army of mercenaries. Health care or transportation? Pay your own way. Want to buy a baby or enter a lifetime personal service contract? Go right ahead...Now, it turns out that the joke's on me. Sandy Springs, Georgia is well on its way to becoming the Coasean Republic. Well, let's hope that Tiebout competition works."
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This is blog post on Credit Slips from law professor Adam Levitin, who is one of the sharpest analysts out there. What he calls "The Coasean Republic," I call "privatopia." Ronald Coase invented the Coase Theorem, which is at the root of much libertarian thinking. The theorem supports the notion that government regulation of externalities is less efficient than private payments. Externalities are the costs of a transaction that are not born by the parties to the transaction, but instead are imposed on others. A hog farmer grows and sells hogs and we eat bacon. But anybody living near the hog farm has to deal with the air and water pollution. The way Coase looked at it, instead of the government enacting a zoning law that prohibits you and your neighbors from setting up backyard hog farms, you should be free to do that unless your neighbors care enough about it to pay you not to do it. So CC&Rs are better than zoning ordinances because they were individually negotiated by the neighbors to create the little private utopia that they enjoy so much, free from the meddlesome and inefficient interference of government. Get it? No? You disagree? Well--Coase got a Nobel Prize, and as Fred Pilot would say, "So there!"
"At times I've joked to my classes about the possibility of a Coasean Republic, a state I call "Coase-istan" (or perhaps Kosistan), in which the entire world operates via private ordering. In Coase-istan, government does, well, nothing except put service provision out for private bids. Mail would be delivered only by private express companies like Fed-Ex. Prisons would be privately operated. Executions would be contracted out to the highest bidder. Food and drug safety would be policed solely by private litigation, which would, of course, all go to arbitration. Deposits would be privately insured, if at all. Taxes would be collected by tax farmers. The borders of the Coasean Republic would be protected by an army of mercenaries. Health care or transportation? Pay your own way. Want to buy a baby or enter a lifetime personal service contract? Go right ahead...Now, it turns out that the joke's on me. Sandy Springs, Georgia is well on its way to becoming the Coasean Republic. Well, let's hope that Tiebout competition works."
----------------
This is blog post on Credit Slips from law professor Adam Levitin, who is one of the sharpest analysts out there. What he calls "The Coasean Republic," I call "privatopia." Ronald Coase invented the Coase Theorem, which is at the root of much libertarian thinking. The theorem supports the notion that government regulation of externalities is less efficient than private payments. Externalities are the costs of a transaction that are not born by the parties to the transaction, but instead are imposed on others. A hog farmer grows and sells hogs and we eat bacon. But anybody living near the hog farm has to deal with the air and water pollution. The way Coase looked at it, instead of the government enacting a zoning law that prohibits you and your neighbors from setting up backyard hog farms, you should be free to do that unless your neighbors care enough about it to pay you not to do it. So CC&Rs are better than zoning ordinances because they were individually negotiated by the neighbors to create the little private utopia that they enjoy so much, free from the meddlesome and inefficient interference of government. Get it? No? You disagree? Well--Coase got a Nobel Prize, and as Fred Pilot would say, "So there!"
Worst TB outbreak in 20 years kept secret | www.palmbeachpost.com
Worst TB outbreak in 20 years kept secret | www.palmbeachpost.com
JACKSONVILLE — The CDC officer had a serious warning for Florida health officials in April: A tuberculosis outbreak in Jacksonville was one of the worst his group had investigated in 20 years. Linked to 13 deaths and 99 illnesses, including six children, it would require concerted action to stop.
That report had been penned on April 5, exactly nine days after Florida Gov. Rick Scott signed the bill that shrank the Department of Health and required the closure of the A.G. Holley State Hospital in Lantana, where tough tuberculosis cases have been treated for more than 60 years.
--------------------
Florida Governor Rick Scott is, of course, not only Gollum's doomed younger brother. He is also one of the Tea Party darlings who hates gubmint, taxation, and, it seems, public health services at or above the level of Somalia. And has he ever given Floridians a present: "Furthermore, only two-thirds of the active cases could be traced to people and places in Jacksonville where the homeless and mentally ill had congregated. That suggested the TB strain had spread beyond the city’s underclass and into the general population."
I can't wait to hear the libertarians explain how the free market will take care of public health programming.
Monday, July 09, 2012
Scranton moves ahead with minimum wage pay for city workers despite injunction - News - The Times-Tribune
Scranton moves ahead with minimum wage pay for city workers despite injunction - News - The Times-Tribune
In defiance of an injunction issued in Lackawanna County Court, hundreds of city employees will open their checks today to find they were paid only minimum wage for their work.
Amid Scranton's ever-deepening financial crisis, Mayor Chris Doherty said his administration is going forward with a plan to unilaterally slash the pay of 398 workers to the federal minimum of $7.25 an hour with today's payroll, insisting it is all the city can afford.
---------------
And then they came for the municipal employees, and I said nothing...
In defiance of an injunction issued in Lackawanna County Court, hundreds of city employees will open their checks today to find they were paid only minimum wage for their work.
Amid Scranton's ever-deepening financial crisis, Mayor Chris Doherty said his administration is going forward with a plan to unilaterally slash the pay of 398 workers to the federal minimum of $7.25 an hour with today's payroll, insisting it is all the city can afford.
---------------
And then they came for the municipal employees, and I said nothing...
Saturday, July 07, 2012
How Wall Street Scams Counties Into Bankruptcy - Bloomberg
How Wall Street Scams Counties Into Bankruptcy - Bloomberg
For some reason, Wall Street never seems to get the message that bribing government officials -- and paying each other off - - to get access to lucrative municipal-bond underwriting business is illegal. Wall Street has never learned this lesson because the miniscule price it ends up having to pay for misbehaving has absolutely no deterrent value whatsoever.
-------------
This piece then goes on to summarize some of the catastrophes that have occurred to date.
For some reason, Wall Street never seems to get the message that bribing government officials -- and paying each other off - - to get access to lucrative municipal-bond underwriting business is illegal. Wall Street has never learned this lesson because the miniscule price it ends up having to pay for misbehaving has absolutely no deterrent value whatsoever.
-------------
This piece then goes on to summarize some of the catastrophes that have occurred to date.
Friday, July 06, 2012
Matt Taibbi: Criminal convictions for municipal bond rigging
The Scam Wall Street Learned From the Mafia | Politics News | Rolling Stone
The defendants in the case – Dominick Carollo, Steven Goldberg and Peter Grimm – worked for GE Capital, the finance arm of General Electric. Along with virtually every major bank and finance company on Wall Street – not just GE, but J.P. Morgan Chase, Bank of America, UBS, Lehman Brothers, Bear Stearns, Wachovia and more – these three Wall Street wiseguys spent the past decade taking part in a breathtakingly broad scheme to skim billions of dollars from the coffers of cities and small towns across America. The banks achieved this gigantic rip-off by secretly colluding to rig the public bids on municipal bonds, a business worth $3.7 trillion. By conspiring to lower the interest rates that towns earn on these investments, the banks systematically stole from schools, hospitals, libraries and nursing homes – from "virtually every state, district and territory in the United States," according to one settlement. And they did it so cleverly that the victims never even knew they were being cheated.
------------------
These three defendants were convicted. And the US press covers the latest celebrity divorce. If you would like to read more about how this hurt municipalities, see Taibbi's follow up here.
The defendants in the case – Dominick Carollo, Steven Goldberg and Peter Grimm – worked for GE Capital, the finance arm of General Electric. Along with virtually every major bank and finance company on Wall Street – not just GE, but J.P. Morgan Chase, Bank of America, UBS, Lehman Brothers, Bear Stearns, Wachovia and more – these three Wall Street wiseguys spent the past decade taking part in a breathtakingly broad scheme to skim billions of dollars from the coffers of cities and small towns across America. The banks achieved this gigantic rip-off by secretly colluding to rig the public bids on municipal bonds, a business worth $3.7 trillion. By conspiring to lower the interest rates that towns earn on these investments, the banks systematically stole from schools, hospitals, libraries and nursing homes – from "virtually every state, district and territory in the United States," according to one settlement. And they did it so cleverly that the victims never even knew they were being cheated.
------------------
These three defendants were convicted. And the US press covers the latest celebrity divorce. If you would like to read more about how this hurt municipalities, see Taibbi's follow up here.
Thursday, July 05, 2012
Report: Countrywide won influence with discounts - Businessweek
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.
------------
No comment. Res ipsa loquitur.
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.
------------
No comment. Res ipsa loquitur.
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.
--------------
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.
--------------
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.'"
---------------
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."
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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.
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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.
--------------
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."
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