Marjorie Murray at the Center for California Homeowner Association Law sent this release (note: this is a corrected version that Marjorie sent along):
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Disabled World War II veteran David Perrin is finally going to get his elevator.
The 84-year-old has been petitioning his homeowner association board for nearly two years to install a small elevator – at his own expense – so he can get in and out of his home, where he has been a virtual prisoner.
Mai Kai Association (Orange County) formed multiple committees to deal with his request, each committee throwing up more barriers. One of the last barriers was telling him that state law requires all the homeowners to vote on his application. (This is utter nonsense.) Each committee was a different configuration of board members.
One mantra of the Community Association Institute (CAI) – the national trade group for associations – is that boards make “mistakes” like this because they are “volunteers” who don’t know any better.
The Perrin case gives lie to CAI’s claim.
This is not a naïve board – or shouldn’t be, given the professionals advising it.
The board president himself is an attorney. Its property manager is certified by the California Association of Community Managers (CACM); the company she works for – Professional Community Management (PCM) is itself certified by CACM, the trade group for association managers. According to its website, PCM manages more than 125,000 association homes, so this surely can’t be the first fair housing case it has dealt with. In addition, the law firm advising the board – Harle Janics Kannen – is legal counsel to homeowner associations throughout Southern California.
But apparently neither the CACM professionals or the lawyers told the board that disabled Perrin is protected by both state and federal laws – or maybe they did, but everyone chose to ignore them.
The board blocked Perrin’s application with endless requirements and delays. Meanwhile, his health continued to deteriorate as his doctors’ letters certified.
Finally, he sued.
His lawyers retained Marjorie Murray for two months as an independent consultant to review his application, board procedures, minutes, other critical documents, and to testify at trial. She is president of the Center for California Homeowner Association Law.
The case settled ten days ago. Not all the details have been made public, but one thing is certain: after two years of grief, disabled veteran David Perrin is going to get his elevator. But we do have to ask WHY a board paying for so much “expertise” from lawyers, certified property managers, and industry professionals could obstruct his legitimate request for reasonable accommodation/reasonable modification? We still don’t have an answer to that question.
We can only bet that State Farm Insurance isn’t too happy about the settlement, given what it must have paid out in attorneys’ fees to Perrin’s lawyers.
The Orange County Register has done two stories on the Perrin case. Here’s the link to the first story: http://www.ocregister.com/articles/board-370385-fair-sale.html?pic=2 It contains the link to the first story with all the background on this disability rights fight.
We can only hope that the Perrin case will be a wake-up call to homeowner associations across the country – and to the industry professionals advising them….
CCHAL NewsBrief September 10, 2012
Monday, September 10, 2012
Sunday, September 09, 2012
If You Build It, They Might Not Come: The Risky Economics of Sports Stadiums - Pat Garofalo and Travis Waldron - The Atlantic
If You Build It, They Might Not Come: The Risky Economics of Sports Stadiums - Pat Garofalo and Travis Waldron - The Atlantic:
"This is an altogether too common problem in professional sports. Across the country, franchises are able to extract taxpayer funding to build and maintain private facilities, promising huge returns for the public in the form of economic development...Time after time, politicians wary of letting a local franchise relocate -- as the NBA's Seattle Supersonics did, to Oklahoma City before the 2008-2009 season -- approve public funds, selling the stadiums as public works projects that will boost the local economy and provide a windfall of growth."
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There are numerous examples of cities doing this, and assuming other financial obligations and risks in order to attract businesses.
"This is an altogether too common problem in professional sports. Across the country, franchises are able to extract taxpayer funding to build and maintain private facilities, promising huge returns for the public in the form of economic development...Time after time, politicians wary of letting a local franchise relocate -- as the NBA's Seattle Supersonics did, to Oklahoma City before the 2008-2009 season -- approve public funds, selling the stadiums as public works projects that will boost the local economy and provide a windfall of growth."
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There are numerous examples of cities doing this, and assuming other financial obligations and risks in order to attract businesses.
Saturday, September 08, 2012
Wells Fargo Accidentally Forecloses on Wrong House, Throws Away Couple’s Precious Memories
Wells Fargo Accidentally Forecloses on Wrong House, Throws Away Couple’s Precious Memories
The couple didn't even have a mortgage. Alvin and his father built the house with their own hands. The corporate apology and promise to "right this wrong" are, of course, meaningless public relations ploys, because nobody is actually sorry and there isn't any way to make it right. There have been many stories like this, and I think the only way to address this situation is for the people who ordered it and did it to go to jail. Maybe that would set an example for others and lead to making absolutely sure they are in the right house.
The owners of a modest home near Twentynine Palms lost their cherished possessions after a bank mistakenly foreclosed their residence. A crew broke into Alvin and Pat Tjosaas’ desert home and took everything after being directed by Wells Fargo to secure the structure...
----------------Alvin said the deputy sheriff said, “Good news, we know who took (your possessions)…Wells Fargo. Bad news, your stuff is all gone.” …A spokesman for Wells Fargo released a statement apologizing to the couple.“We are deeply sorry for the very personal losses the Tjosaas family suffered as a result of their home being mistakenly secured,” said Alfredo Padilla. “We are moving quickly to reach out to the family to resolve this unfortunate situation in an attempt to right this wrong.”
The couple didn't even have a mortgage. Alvin and his father built the house with their own hands. The corporate apology and promise to "right this wrong" are, of course, meaningless public relations ploys, because nobody is actually sorry and there isn't any way to make it right. There have been many stories like this, and I think the only way to address this situation is for the people who ordered it and did it to go to jail. Maybe that would set an example for others and lead to making absolutely sure they are in the right house.
Friday, September 07, 2012
Man fatally shoots 1, wounds other at Ky. meeting - Spokesman.com - Sept. 7, 2012
Man fatally shoots 1, wounds other at Ky. meeting - Spokesman.com - Sept. 7, 2012: Hindi was only at the meeting for a short time before he started shooting, police said. Some of the several people in attendance detained him until officers arrived.
David Merritt, 73, a one-time president of the homeowners association, was shot once in the head and died at the scene, said Jefferson County Chief Deputy Coroner Jo-Ann Farmer. The wounded man, whose identity was not immediately released, was hospitalized Friday at the University of Louisville Hospital, Farmer said.
Spring Creek Homeowners Association attorney Mike Kelly told The Associated Press that the group accused Hindi of violating zoning laws. Hindi wrote several letters to Kelly, expressing anger and contempt for the attorney, Kelly said.
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Shades of a similar Arizona incident in 2000 in which an HOA member went postal on the board of directors.
David Merritt, 73, a one-time president of the homeowners association, was shot once in the head and died at the scene, said Jefferson County Chief Deputy Coroner Jo-Ann Farmer. The wounded man, whose identity was not immediately released, was hospitalized Friday at the University of Louisville Hospital, Farmer said.
Spring Creek Homeowners Association attorney Mike Kelly told The Associated Press that the group accused Hindi of violating zoning laws. Hindi wrote several letters to Kelly, expressing anger and contempt for the attorney, Kelly said.
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Shades of a similar Arizona incident in 2000 in which an HOA member went postal on the board of directors.
Sunday, September 02, 2012
How Your Movements Are Being Tracked, Probably Without Your Knowledge | Alternet
How Your Movements Are Being Tracked, Probably Without Your Knowledge | Alternet:
Automated license plate readers, or ALPRs: "Big cities, like Washington, DC and New York, are riddled with ALPRs. According to the Partnership for Civil Justice Fund, ALPRs have become so pervasive in America that they constitute a "covert national surveillance grid." The civil liberties group has mapped the spread of ALPRs, and contends on its Web site that, "Silently, but constantly, the government is now watching, recording your everyday travels and storing years of your activities in massive data warehouses that can be quickly 'mined' to find out when and where you have been, whom you’ve visited, meetings you’ve attended, and activities you’ve taken part in."
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And small cities, such as Tiburon, CA, are also acquiring this technology. The idea is to surreptitiously keep track of every car that passes. What is being done with all this information?
Automated license plate readers, or ALPRs: "Big cities, like Washington, DC and New York, are riddled with ALPRs. According to the Partnership for Civil Justice Fund, ALPRs have become so pervasive in America that they constitute a "covert national surveillance grid." The civil liberties group has mapped the spread of ALPRs, and contends on its Web site that, "Silently, but constantly, the government is now watching, recording your everyday travels and storing years of your activities in massive data warehouses that can be quickly 'mined' to find out when and where you have been, whom you’ve visited, meetings you’ve attended, and activities you’ve taken part in."
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And small cities, such as Tiburon, CA, are also acquiring this technology. The idea is to surreptitiously keep track of every car that passes. What is being done with all this information?
Friday, August 31, 2012
State files lawsuit against three board members of The Harbours
State files lawsuit against three board members of The Harbours Recent Local News News and Tribune: The Indiana Attorney General’s Office filed the complaint in Clark County Circuit Court No. 2 against board members Kevin Zipperle, Mary Lou Trautwein-Lamkin and Sharon Chandler, according to a press release from the office. Frank Prell is also named in the lawsuit as a former owner of multiple condominium units at The Harbours, which is located at 1 River Point Plaza.
“Today’s lawsuit is the first of its kind under a new state law allowing the Attorney General’s Office to regulate homeowner associations,” said Gabrielle Owens, director of the Homeowner Protection Unit and Licensing Enforcement Unit of the Indiana Attorney General’s Office. “Board members have a fiduciary duty to serve in the interest of those they represent. Our office is committed to protecting homeowners and will continue to bring actions against violators who misuse their positions for personal gain.”
A state law passed in 2011 allows the Attorney General’s Office to regulate homeowners associations similar to other nonprofit organizations. The office has the authority to bring actions against a homeowner association’s board of directors and in some cases, against association board members.
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California and other state AGs already have oversight authority over HOA corporations in their role as regulators of nonprofit corporations. But they have historically relegated complaints against HOA corporations to the bottom of the inbox citing lack of resources.
“Today’s lawsuit is the first of its kind under a new state law allowing the Attorney General’s Office to regulate homeowner associations,” said Gabrielle Owens, director of the Homeowner Protection Unit and Licensing Enforcement Unit of the Indiana Attorney General’s Office. “Board members have a fiduciary duty to serve in the interest of those they represent. Our office is committed to protecting homeowners and will continue to bring actions against violators who misuse their positions for personal gain.”
A state law passed in 2011 allows the Attorney General’s Office to regulate homeowners associations similar to other nonprofit organizations. The office has the authority to bring actions against a homeowner association’s board of directors and in some cases, against association board members.
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California and other state AGs already have oversight authority over HOA corporations in their role as regulators of nonprofit corporations. But they have historically relegated complaints against HOA corporations to the bottom of the inbox citing lack of resources.
Thursday, August 30, 2012
The Tacky History of the Pink Flamingo | Arts & Culture | Smithsonian Magazine
The Tacky History of the Pink Flamingo | Arts & Culture | Smithsonian Magazine
This should be of interest to all readers of this blog...
This should be of interest to all readers of this blog...
Wednesday, August 29, 2012
Las Vegas Housing Marking Facing Foreclosure Glut - 8 News NOW
Las Vegas Housing Marking Facing Foreclosure Glut - 8 News NOW: LAS VEGAS -- It's estimated there are thousands of foreclosed homes about to hit the local housing market.
According to banking and real estate insiders, Las Vegas real estate is about to take another big hit, and it could delay the recovery for years to come.
Foreclosure notices continue to be posted on homes around the Las Vegas valley.
"What I'm hearing from sources, is that work has never been busier," realtor Jared Jones said.
According to real estate experts, a new wave of foreclosures is about to hit the market. It will most likely turn what has been a seller's market, for the last few months, into another foreclosure free-for-all. It could potentially drive Las Vegas Home prices down even further.
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Despite more positive numbers lately for the residential real estate sector, the Las Vegas area -- a Privatopian province of some of the biggest common interest developments in the nation -- is still convulsing.
According to banking and real estate insiders, Las Vegas real estate is about to take another big hit, and it could delay the recovery for years to come.
Foreclosure notices continue to be posted on homes around the Las Vegas valley.
"What I'm hearing from sources, is that work has never been busier," realtor Jared Jones said.
According to real estate experts, a new wave of foreclosures is about to hit the market. It will most likely turn what has been a seller's market, for the last few months, into another foreclosure free-for-all. It could potentially drive Las Vegas Home prices down even further.
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Despite more positive numbers lately for the residential real estate sector, the Las Vegas area -- a Privatopian province of some of the biggest common interest developments in the nation -- is still convulsing.
Sunday, August 26, 2012
Illinois General Assembly - Bill Status for SB3572
Illinois General Assembly - Bill Status for SB3572
This revision of the Common Interest Community Associations Act was just signed by Governor Quinn. The Act applies to non-condo associations, i.e., homeowners associations.
This revision of the Common Interest Community Associations Act was just signed by Governor Quinn. The Act applies to non-condo associations, i.e., homeowners associations.
Thursday, August 23, 2012
First Our Homes, Now Our Water? | Food & Water Watch
First Our Homes, Now Our Water? | Food & Water Watch:
Following its disastrous foray into the housing market, Wall Street’s latest earnings scheme is as close as your kitchen sink: the finance industry is increasingly targeting public water systems. A new report released today by the national consumer advocacy group Food & Water Watch, Private Equity, Public Inequity: The Public Cost of Private Equity Takeovers of U.S. Water Infrastructure reveals that as of January 2012, private equity players had raised $186 billion through 276 infrastructure funds and were seeking another $93 billion to take over infrastructure worldwide.
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As state and local governments face increasing fiscal constraints, private equity funds make what must seem like attractive offers, at least in the short term. But if experience has taught us anything, it is that the long term costs and benefits and other consequences must be taken into account.
Following its disastrous foray into the housing market, Wall Street’s latest earnings scheme is as close as your kitchen sink: the finance industry is increasingly targeting public water systems. A new report released today by the national consumer advocacy group Food & Water Watch, Private Equity, Public Inequity: The Public Cost of Private Equity Takeovers of U.S. Water Infrastructure reveals that as of January 2012, private equity players had raised $186 billion through 276 infrastructure funds and were seeking another $93 billion to take over infrastructure worldwide.
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As state and local governments face increasing fiscal constraints, private equity funds make what must seem like attractive offers, at least in the short term. But if experience has taught us anything, it is that the long term costs and benefits and other consequences must be taken into account.
Sales of New U.S. Homes Increase to Match Two-Year High - Bloomberg
Sales of New U.S. Homes Increase to Match Two-Year High - Bloomberg:
Purchases of new U.S. homes rose more than projected in July to match a two-year high, a sign the industry that helped trigger the recession is recovering. Sales climbed 3.6 percent to a 372,000 annual pace, following a 359,000 rate in June that was higher than previously estimated, figures from the Commerce Department showed today in Washington. Last month’s rate was the same as in May, which was the strongest since April 2010. The median forecast of 72 economists surveyed by Bloomberg called for a rise to 365,000.
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This is still an anemic number of new home sales, but at least it's going in the right direction.
Purchases of new U.S. homes rose more than projected in July to match a two-year high, a sign the industry that helped trigger the recession is recovering. Sales climbed 3.6 percent to a 372,000 annual pace, following a 359,000 rate in June that was higher than previously estimated, figures from the Commerce Department showed today in Washington. Last month’s rate was the same as in May, which was the strongest since April 2010. The median forecast of 72 economists surveyed by Bloomberg called for a rise to 365,000.
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This is still an anemic number of new home sales, but at least it's going in the right direction.
Wednesday, August 22, 2012
DCPP Arquitectos' Sky Condos Offer Sky-High Balconies With Swimming Pools In Lima, Peru (PHOTOS)
DCPP Arquitectos' Sky Condos Offer Sky-High Balconies With Swimming Pools In Lima, Peru (PHOTOS):
DCPP Arquitectos' planned Sky Condos will feature balconies with private pools and other amenities that aim to better integrate indoor and outdoor spaces, according to a Google translation of the company’s website. (Hat tip: the Daily Mail.) The 20-story condo building, designed to be “an icon for the future," will be located in the heart of a wealthy area of Lima and offer its residents views of a nearby golf course.
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It appears that if you get out of the pool on the wrong side your first step takes you down about 20 stories.
DCPP Arquitectos' planned Sky Condos will feature balconies with private pools and other amenities that aim to better integrate indoor and outdoor spaces, according to a Google translation of the company’s website. (Hat tip: the Daily Mail.) The 20-story condo building, designed to be “an icon for the future," will be located in the heart of a wealthy area of Lima and offer its residents views of a nearby golf course.
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It appears that if you get out of the pool on the wrong side your first step takes you down about 20 stories.
How Some States Are Giving Oil and Gas Companies the Right to Take Your Land | Alternet
How Some States Are Giving Oil and Gas Companies the Right to Take Your Land | Alternet
They are called "natural resource development takings," and this article contains a link to an essay by a law professor that explains the process.
ps: To commenters--please don't include huge chunks of text from copyrighted articles in your comments. Limit that to a few sentences.
They are called "natural resource development takings," and this article contains a link to an essay by a law professor that explains the process.
ps: To commenters--please don't include huge chunks of text from copyrighted articles in your comments. Limit that to a few sentences.
Late Night: Wine and Mega-Church Clash in Temecula’s Vineyards | La Figa
Late Night: Wine and Mega-Church Clash in Temecula’s Vineyards | La Figa:
A zoning ordinance, adopted in 1994, prohibits the building of� houses of worship and other non-commercial, non-agricultural ventures in the AVA and C/V zones. And at least one church wants that changed, Calvary Chapel Bible Fellowship in Temecula, which operates without a permit in the AVA; the church was built before current zoning went into effect. Calvary Chapel Bible Fellowship is seeking to expand their campus to include more parking lots and a K-8 school with a playground, and has launched an offensive, including urging their flock to write the Riverside Planning Commission and the Country Board of Supervisors, as well as attending the Planning Commission meeting on August 22. Chick-fil-A will be providing Wednesday’s lunch for the Calvary Chapel cavalry.
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It isn't that the vintners are against churches. The problem is that the church and school would have to be protected against all the chemicals that are sprayed on the grapes. There would be a half-mile circle around the church that would be lost to agriculture.
A zoning ordinance, adopted in 1994, prohibits the building of� houses of worship and other non-commercial, non-agricultural ventures in the AVA and C/V zones. And at least one church wants that changed, Calvary Chapel Bible Fellowship in Temecula, which operates without a permit in the AVA; the church was built before current zoning went into effect. Calvary Chapel Bible Fellowship is seeking to expand their campus to include more parking lots and a K-8 school with a playground, and has launched an offensive, including urging their flock to write the Riverside Planning Commission and the Country Board of Supervisors, as well as attending the Planning Commission meeting on August 22. Chick-fil-A will be providing Wednesday’s lunch for the Calvary Chapel cavalry.
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It isn't that the vintners are against churches. The problem is that the church and school would have to be protected against all the chemicals that are sprayed on the grapes. There would be a half-mile circle around the church that would be lost to agriculture.
Tuesday, August 21, 2012
Lakeview couple sues condo for neighbor's 20 smelly cats - chicagotribune.com
Lakeview couple sues condo for neighbor's 20 smelly cats - chicagotribune.com:
A married couple living in a Lakeview condominium filed a lawsuit Monday in Cook County Circuit Court against a neighbor, their condominium association, individual board members and property managers, claiming their downstairs neighbor's approximately 20 cats have caused odors of urine and feces to permeate into their unit.
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I don't have any data on it, but there seem to be more and more of these cases involving smells and sounds that emanate from one unit to others, and the obligations of condo associations to address the situation. I think these are difficult situations for all concerned, but twenty cats certainly could produce some significant odors.
A married couple living in a Lakeview condominium filed a lawsuit Monday in Cook County Circuit Court against a neighbor, their condominium association, individual board members and property managers, claiming their downstairs neighbor's approximately 20 cats have caused odors of urine and feces to permeate into their unit.
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I don't have any data on it, but there seem to be more and more of these cases involving smells and sounds that emanate from one unit to others, and the obligations of condo associations to address the situation. I think these are difficult situations for all concerned, but twenty cats certainly could produce some significant odors.
Billionaire's new Colorado town is a private Old West marvel - The Denver Post
Billionaire's new Colorado town is a private Old West marvel - The Denver Post: KEBLER PASS�—There's a new town in Colorado. It has about 50 buildings, including a saloon, a church, a jail, a firehouse, a livery and a train station. Soon, it will have a mansion on a hill so the town's founder can look down on his creation.
But don't expect to move here — or even to visit.
This town is billionaire Bill Koch's fascination with the Old West rendered in bricks and mortar. It sits on a 420-acre meadow on his Bear Ranch below the Raggeds Wilderness Area in Gunnison County. It's an unpopulated, faux Western town that might boggle the mind of anyone who ever had a playhouse.
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And he says it will never, ever be open to the public, so all you unwashed peons can just keep out. This is one of the notorious Koch brothers, the oil billionaires who bankrolled much of the Tea Party and are pushing the Republican party farther and farther to the right.
But don't expect to move here — or even to visit.
This town is billionaire Bill Koch's fascination with the Old West rendered in bricks and mortar. It sits on a 420-acre meadow on his Bear Ranch below the Raggeds Wilderness Area in Gunnison County. It's an unpopulated, faux Western town that might boggle the mind of anyone who ever had a playhouse.
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And he says it will never, ever be open to the public, so all you unwashed peons can just keep out. This is one of the notorious Koch brothers, the oil billionaires who bankrolled much of the Tea Party and are pushing the Republican party farther and farther to the right.
Sunday, August 19, 2012
Bank-owned vacant properties and the homeless in Chicago
Truthout | Fearless, Independent News and Opinion
"A housing liberation movement is brewing in Chicago. The idea is simple: Tens of thousands - possibly hundreds of thousands - of vacant, bank-owned homes are a large part of what is making the poorest neighborhoods of Chicago into semi-forsaken tracts ridden with crime and blight. These houses are so bad that Mayor Rahm Emanuel recently announced that he’d spend $4 million just to tear some down. Meanwhile, there are more than 20,000 homeless adults and tens of thousands of additional homeless youth in the city fighting through life as capitalism’s refugees.... The only definition of these so-called assets that makes sense is their immediate capacity to serve as homes for families."
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Seems like a good match: empty bank-owned houses and people with no place to live
"A housing liberation movement is brewing in Chicago. The idea is simple: Tens of thousands - possibly hundreds of thousands - of vacant, bank-owned homes are a large part of what is making the poorest neighborhoods of Chicago into semi-forsaken tracts ridden with crime and blight. These houses are so bad that Mayor Rahm Emanuel recently announced that he’d spend $4 million just to tear some down. Meanwhile, there are more than 20,000 homeless adults and tens of thousands of additional homeless youth in the city fighting through life as capitalism’s refugees.... The only definition of these so-called assets that makes sense is their immediate capacity to serve as homes for families."
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Seems like a good match: empty bank-owned houses and people with no place to live
Reader's Watchdog: Condo group's moves have homeowners crying foul | The Des Moines Register | DesMoinesRegister.com
Reader's Watchdog: Condo group's moves have homeowners crying foul | The Des Moines Register | DesMoinesRegister.com: Some Iowa lawmakers tried to pass model legislation passed in Colorado and other states that would fix that. But state Rep. Julian Garrett, R-Indianola, told me the legislation, the Uniform Common Interest Ownership Act, died for lack of support at the end of the past session.
Until those holes are fixed and consumer protections are made stronger, Bill Brauch, who heads the state attorney general’s consumer protection division, told me he would never join a homeowners’ association.
“You have so little control over the many negative things that can happen to you,” he said. “And then you become trapped in a situation beyond your control that only continues to deteriorate.”
Until those holes are fixed and consumer protections are made stronger, Bill Brauch, who heads the state attorney general’s consumer protection division, told me he would never join a homeowners’ association.
“You have so little control over the many negative things that can happen to you,” he said. “And then you become trapped in a situation beyond your control that only continues to deteriorate.”
Saturday, August 18, 2012
Judge targets ‘piece of s---’ lawyer with bullseye poster during trial - NY Daily News
Judge targets ‘piece of s---’ lawyer with bullseye poster during trial - NY Daily News
Thanks to Fred Pilot for this link.
A quirky Brooklyn judge lambasted a lawyer as a “piece of s---” and hung “Wanted” posters featuring the man’s photo — then drew a bull’s eye in red ink on the face, court papers allege.
Supreme Court Justice Arthur Schack — who has been hailed nationwide as a hero for standing up for the little guy in foreclosure cases — is in the crosshairs of lawyers trying to boot him off their case.
--------Thanks to Fred Pilot for this link.
County code backs up HOA's cat leash rule - Real Estate - ReviewJournal.com
County code backs up HOA's cat leash rule - Real Estate - ReviewJournal.com:
"Your HOA board members need to rethink their position of how to monitor the pool. At any time and in any community, associations have neighbors using their pools. It is a constant headache. With the economic conditions of Southern Nevada, not many associations can afford part-time summer security or a pool monitor. Some associations have people wear armbands to identify them as association members. The colors of the armbands often change each season."
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Fred Pilot sent the link to this Barbara Holland column in the Las Vegas Review Journal--one of those weekly "ask questions about your condo/HOA" columns. This answer responds to a series of questions about some petty and annoying practices, in this case padlocking the pool gate. One alternative: Armbands??? How about tattooed barcodes for all HOA residents, while you are at it?
"Your HOA board members need to rethink their position of how to monitor the pool. At any time and in any community, associations have neighbors using their pools. It is a constant headache. With the economic conditions of Southern Nevada, not many associations can afford part-time summer security or a pool monitor. Some associations have people wear armbands to identify them as association members. The colors of the armbands often change each season."
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Fred Pilot sent the link to this Barbara Holland column in the Las Vegas Review Journal--one of those weekly "ask questions about your condo/HOA" columns. This answer responds to a series of questions about some petty and annoying practices, in this case padlocking the pool gate. One alternative: Armbands??? How about tattooed barcodes for all HOA residents, while you are at it?
Law firm may be double-dipping on homeowner association fees - latimes.com
Law firm may be double-dipping on homeowner association fees - latimes.com
"Question: My homeowners association has contracted with the same attorney firm on retainer for more than 25 years. The attorney also receives 40% of any money collected from dues and fines, and the association is demanding more in settlements to recoup its attorney expenses. In response to questions of this practice at a board meeting, the president said that "we have no choice in this economy due to the high number of delinquencies but to use the attorney's services, and all HOAs are doing this now." Many of my longtime neighbors are walking away from their homes because they can't meet these higher re-payment demands by the board. The association should be negotiating with owners, without the added expense of the attorney's fees. Is my association being ripped off, and are the attorneys double-dipping?"
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Donie Vanitzian responds to this question in her Los Angeles Times column. Donie points out some serious questions about what looks like an attorney taking a 40% contingency fee from amounts recovered from delinquent owners, but the amounts recovered would seem to already include attorney fees related to the recovery. Add to that the fact that the attorney is already on retainer. The question is whether the attorney is taking 40% of an amount recovered from the delinquent owner that actually includes attorney fees, presumably calculated on an hourly basis (and maybe even including his retainer). The question says, "My homeowners association has contracted with the same attorney firm on retainer for more than 25 years. The attorney also receives 40% of any money collected from dues and fines…" But the retainer is probably for all the work the attorney does for them, not just collections. And the contract probably says something like, "the association pays the attorney $x per month, and in addition the attorney gets paid 40% of what he recovers from delinquent owners." But how does the attorney include his fees in the claim agains the owner, which he would certainly do, because those are recoverable under the statute? First, how does he include a retainer fee? Second, how does he include attorney fees related to the recovery, such as writing letters, etc.? Because only the recovery costs are chargeable to the owner. And if he then takes 40% of the assessments, late fees, AND attorney fees, that certainly looks like double-dipping. As Donie says, "Law firms engaged in a collections practice may take a percentage of the amount collected, forgoing any claim to attorney's fees, or they collect under situations allowing them to recover their fees. The latter generally pertains to associations collecting delinquent assessments."
Thanks to Fred Pilot for the link.
"Question: My homeowners association has contracted with the same attorney firm on retainer for more than 25 years. The attorney also receives 40% of any money collected from dues and fines, and the association is demanding more in settlements to recoup its attorney expenses. In response to questions of this practice at a board meeting, the president said that "we have no choice in this economy due to the high number of delinquencies but to use the attorney's services, and all HOAs are doing this now." Many of my longtime neighbors are walking away from their homes because they can't meet these higher re-payment demands by the board. The association should be negotiating with owners, without the added expense of the attorney's fees. Is my association being ripped off, and are the attorneys double-dipping?"
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Donie Vanitzian responds to this question in her Los Angeles Times column. Donie points out some serious questions about what looks like an attorney taking a 40% contingency fee from amounts recovered from delinquent owners, but the amounts recovered would seem to already include attorney fees related to the recovery. Add to that the fact that the attorney is already on retainer. The question is whether the attorney is taking 40% of an amount recovered from the delinquent owner that actually includes attorney fees, presumably calculated on an hourly basis (and maybe even including his retainer). The question says, "My homeowners association has contracted with the same attorney firm on retainer for more than 25 years. The attorney also receives 40% of any money collected from dues and fines…" But the retainer is probably for all the work the attorney does for them, not just collections. And the contract probably says something like, "the association pays the attorney $x per month, and in addition the attorney gets paid 40% of what he recovers from delinquent owners." But how does the attorney include his fees in the claim agains the owner, which he would certainly do, because those are recoverable under the statute? First, how does he include a retainer fee? Second, how does he include attorney fees related to the recovery, such as writing letters, etc.? Because only the recovery costs are chargeable to the owner. And if he then takes 40% of the assessments, late fees, AND attorney fees, that certainly looks like double-dipping. As Donie says, "Law firms engaged in a collections practice may take a percentage of the amount collected, forgoing any claim to attorney's fees, or they collect under situations allowing them to recover their fees. The latter generally pertains to associations collecting delinquent assessments."
Thanks to Fred Pilot for the link.
Friday, August 17, 2012
Speed humps on community road lead to anger, vandalism � Marco Eagle
Speed humps on community road lead to anger, vandalism � Marco Eagle: Five complaints from residents reached Collier County Code Enforcement, which contacted board members and issued a notice of violation in June. Even private roads needed county approval for such changes, the county said.
Then a particularly contentious board meeting in July nearly ended in a brawl outside meeting chambers, Treasurer Terry Savage said.
"It was the biggest yelling match I've seen," said Savage, who has served on the board for more than a year. "I'm not sure my wife will want me to be on the board again."
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So called traffic calming devices such as speed bumps seem to have the opposite effect on the residents of this corner of Privatopia.
Then a particularly contentious board meeting in July nearly ended in a brawl outside meeting chambers, Treasurer Terry Savage said.
"It was the biggest yelling match I've seen," said Savage, who has served on the board for more than a year. "I'm not sure my wife will want me to be on the board again."
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So called traffic calming devices such as speed bumps seem to have the opposite effect on the residents of this corner of Privatopia.
Ruling could change course of collection proceedings - chicagotribune.com
Ruling could change course of collection proceedings - chicagotribune.com
Delinquent condominium owners historically have been told to pay up, no matter how well the board took care of the property. But an Illinois appellate court this summer said just the opposite. The groundbreaking decision could change the course of collection proceedings nationwide.
The case, Spanish Court Two Condominium Association v. Lisa Carlson, began two years ago when the association sued the owner for nonpayment of assessments under the Forcible Entry and Detainer Act. This law allows associations to take temporary possession of a unit and rent it out until the delinquency has been paid. The owner countersued the association for failing to maintain, repair and replace the common elements as required by its governing documents. The trial court ruled in favor of the association.
But the Second District Appellate Court in late June disagreed. The three-judge panel ruled that associations are duty-bound to repair and maintain the common elements and that neglect can be a viable defense, at least in eviction cases like this one. Comparing the relationships between landlords and tenants to associations and owners, they wrote: "Just as the contract principle of mutually exchanged promises can justify a tenant's refusal to pay rent, so that principle can justify a condominium unit owner's refusal to pay assessments."
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Pamela McKuen of the Chicago Tribune reports on this major decision. Link to opinion here.
Experts debate legality of plan to apply eminent domain to mortgages - Real Estate - The Sacramento Bee
Experts debate legality of plan to apply eminent domain to mortgages - Real Estate - The Sacramento Bee: A plan to use eminent domain to seize underwater mortgages has raised hopes of homeowner bailouts in cities stricken by the housing crisis, including Sacramento, Rancho Cordova and Elk Grove.
But would such a novel plan even be legal?
Experts say the proposal being shopped around by San Francisco's Mortgage Resolution Partners may well meet the U.S. Supreme Court's broad definition of a public use under eminent domain law. The investor group is encouraging cities and counties to condemn mortgages and cut the amount borrowers owe to prevent blight and boost local economies.
The sticking point, legal experts say, will be when it comes to paying the "just compensation" required under the U.S. and California constitutions.
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Problem is by the time the U.S. Supreme Court rules on the question -- where the issue will mostly likely end up -- years will have elapsed and the current market will have changed such that fewer homes will be underwater.
But would such a novel plan even be legal?
Experts say the proposal being shopped around by San Francisco's Mortgage Resolution Partners may well meet the U.S. Supreme Court's broad definition of a public use under eminent domain law. The investor group is encouraging cities and counties to condemn mortgages and cut the amount borrowers owe to prevent blight and boost local economies.
The sticking point, legal experts say, will be when it comes to paying the "just compensation" required under the U.S. and California constitutions.
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Problem is by the time the U.S. Supreme Court rules on the question -- where the issue will mostly likely end up -- years will have elapsed and the current market will have changed such that fewer homes will be underwater.
Thursday, August 16, 2012
Nation's Lower Class At Least Grateful It Not Part Of Nation's Middle Class | The Onion - America's Finest News Source
Nation's Lower Class At Least Grateful It Not Part Of Nation's Middle Class | The Onion - America's Finest News Source: "The unrealistic expectations and false hope they experience must be unbearable," Camden, NJ hotel clerk Allison Jacobsen told researchers, noting that while her $22,000 annual salary barely covers her rent and groceries each month, at least she doesn't operate under the flawed assumption that her situation will ever improve. "A life spent constantly stressing out over a dead-end job or struggling to pay off a fixed 30-year mortgage on a continuously depreciating three-bedroom townhouse? It's horrific.
State's high court: Mortgage registry can't foreclose | Business & Technology | The Seattle Times
State's high court: Mortgage registry can't foreclose | Business & Technology | The Seattle Times:
"In a unanimous opinion, the Washington Supreme Court said that Mortgage Electronic Registration Systems (MERS) can't begin a foreclosure itself because it doesn't hold the note the homeowner signed with the lender. The ruling means banks or other noteholders will have to initiate foreclosures themselves instead of relying on MERS."
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Here in Illinois there is an appellate court case saying that MERS does have standing to foreclose. I think this is nuts. MERS is just a scam the banks cooked up to cheat counties out of the recording fees every time they re-sell a note and mortgage. Now they want to use this phony organization as a quick way to foreclose, instead of having to prove that there is a real bank that really own the original note. Thanks to Fred Pilot for this link.
"In a unanimous opinion, the Washington Supreme Court said that Mortgage Electronic Registration Systems (MERS) can't begin a foreclosure itself because it doesn't hold the note the homeowner signed with the lender. The ruling means banks or other noteholders will have to initiate foreclosures themselves instead of relying on MERS."
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Here in Illinois there is an appellate court case saying that MERS does have standing to foreclose. I think this is nuts. MERS is just a scam the banks cooked up to cheat counties out of the recording fees every time they re-sell a note and mortgage. Now they want to use this phony organization as a quick way to foreclose, instead of having to prove that there is a real bank that really own the original note. Thanks to Fred Pilot for this link.
Homeowners associations foreclose on banks | The Courier-Journal | courier-journal.com
Homeowners associations foreclose on banks | The Courier-Journal | courier-journal.com
I have posted articles about this practice before. It highlights the economic challenges facing many HOAs and condo associations. Banks are the 800 pound gorilla of this economy, it seems. They can break laws and instead of people going to jail, the taxpayers are forced to shovel money into their gaping maws. It is obvious that this practice of stiffing associations out of assessments on bank-owned properties is a deliberate strategy to avoid their financial obligations. We are constantly hearing all this whining and condemnation of "strategic defaults," but what do you call this? Thanks to Mika, Fred Fischer, and the others who sent this link.
I have posted articles about this practice before. It highlights the economic challenges facing many HOAs and condo associations. Banks are the 800 pound gorilla of this economy, it seems. They can break laws and instead of people going to jail, the taxpayers are forced to shovel money into their gaping maws. It is obvious that this practice of stiffing associations out of assessments on bank-owned properties is a deliberate strategy to avoid their financial obligations. We are constantly hearing all this whining and condemnation of "strategic defaults," but what do you call this? Thanks to Mika, Fred Fischer, and the others who sent this link.
Wednesday, August 15, 2012
Your home, their rules
Charleston Regional Business Journal | Charleston, SC
This link goes to some stories by Matt Tomsic that deal with HOAs generally and also with their power to foreclose.
This link goes to some stories by Matt Tomsic that deal with HOAs generally and also with their power to foreclose.
Tuesday, August 14, 2012
When Serving Jail Time for Unpaid Debts Becomes a Debt Spiral - Credit Slips
When Serving Jail Time for Unpaid Debts Becomes a Debt Spiral - Credit Slips:
"Tell me.� Are we allowed to do anything we like to those with the least power and money in our society? Are there no limits? We know that in some states, private actors have been permitted to charge 500-1,000% for loans, but what about public actors? Can you think of any debtor-credit practices that rise to the level of human right violations? This is question Chrystin Ondersma (Rutgers Newark School of Law) and I have been asking ourselves in connection with a project on which we are working."
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This post on Credit Slips by law professor Nathalie Martin raises some troubling questions. Local governments seem to be using their police powers to raise revenue.
"Tell me.� Are we allowed to do anything we like to those with the least power and money in our society? Are there no limits? We know that in some states, private actors have been permitted to charge 500-1,000% for loans, but what about public actors? Can you think of any debtor-credit practices that rise to the level of human right violations? This is question Chrystin Ondersma (Rutgers Newark School of Law) and I have been asking ourselves in connection with a project on which we are working."
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This post on Credit Slips by law professor Nathalie Martin raises some troubling questions. Local governments seem to be using their police powers to raise revenue.
Monday, August 13, 2012
Woman says HOA wants her to part ways with pet dog - WSMV Channel 4
Woman says HOA wants her to part ways with pet dog - WSMV Channel 4: All three pups live with Brown at the house she owns in the Park Place subdivision in Antioch. She said she was surprised to receive a letter from the HOA telling her she was breaking its bylaws by having three dogs.
"Not to exceed a total of two," Brown said, reading the letter.
The letter asks Brown to get rid of one dog or else the board would remove one and turn it over to "the appropriate agency for keeping or disposal."
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One of the dogs must go or end up on death row at the pound. More bad press for Privatopia...film at 10.
"Not to exceed a total of two," Brown said, reading the letter.
The letter asks Brown to get rid of one dog or else the board would remove one and turn it over to "the appropriate agency for keeping or disposal."
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One of the dogs must go or end up on death row at the pound. More bad press for Privatopia...film at 10.
Five Ways Privatization Degrades America | Common Dreams
Five Ways Privatization Degrades America | Common Dreams: "A grand delusion has been planted in the minds of Americans, that privately run systems are more efficient and less costly than those in the public sector. Most of the evidence points the other way. Private initiatives generally produce mediocre or substandard results while experiencing the usual travails of unregulated capitalism -- higher prices, limited services, and lower wages for all but a few 'entrepreneurs.'"
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And corruption of various types. Chicago is a great example. The "Hired Trucks Program," the parking meter lease, privatization of the parking garages, the Chicago Skyway deal--all the public got were higher prices and more corruption.
Of course, there are situations where privatization does produce savings on functions that don't need to be done by public employees. The problem is that once the door is opened to privatization, all sorts of unsavory characters start thinking about ways they can cash in.
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And corruption of various types. Chicago is a great example. The "Hired Trucks Program," the parking meter lease, privatization of the parking garages, the Chicago Skyway deal--all the public got were higher prices and more corruption.
Of course, there are situations where privatization does produce savings on functions that don't need to be done by public employees. The problem is that once the door is opened to privatization, all sorts of unsavory characters start thinking about ways they can cash in.
WIKILEAKS: Surveillance Cameras Around The Country Are Being Used In A Huge Spy Network - Business Insider
WIKILEAKS: Surveillance Cameras Around The Country Are Being Used In A Huge Spy Network - Business Insider: "Every few seconds, data picked up at surveillance points in major cities and landmarks across the United States are recorded digitally on the spot, then encrypted and instantaneously delivered to a fortified central database center at an undisclosed location to be aggregated with other intelligence. It’s part of a program called TrapWire and it's the brainchild of the Abraxas, a Northern Virginia company staffed with elite from America’s intelligence community."
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I feel safer already. Don't you? And I wonder if that "other intelligence" includes private security cameras around shopping malls and gated communities.
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I feel safer already. Don't you? And I wonder if that "other intelligence" includes private security cameras around shopping malls and gated communities.
Sunday, August 12, 2012
Rising insurance costs threaten home sales in Fla. - Tampa Bay Times
Rising insurance costs threaten home sales in Fla. - Tampa Bay Times: Florida's housing market was one of the hardest hit during the mortgage crisis, and the state has some of the nation's highest property insurance costs. Florida also has a higher percentage of delinquent mortgages than any other state.
Many homeowners are feeling the pinch of rising insurance costs even as property values have slumped, wages are sinking and unemployment remains high.
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This is the fallout from a series of major hurricanes that pummeled Florida a decade ago.
Many homeowners are feeling the pinch of rising insurance costs even as property values have slumped, wages are sinking and unemployment remains high.
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This is the fallout from a series of major hurricanes that pummeled Florida a decade ago.
Saturday, August 11, 2012
Sacramento area officials explore using eminent domain to aid underwater homeowners - Real Estate - The Sacramento Bee
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.
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.
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."
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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."
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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.
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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.
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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.
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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.
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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.
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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.
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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."
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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).
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.
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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.
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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.
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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.
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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.
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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:
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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.
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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.
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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."
-------------
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."
--------------------------------
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.
----------
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.
--------------------------------------------
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.
------------
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.
------------
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."
--------------
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."
--------------
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."
-----------
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."
-------------
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.”
-----------
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.”
-----------
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."
-------------------------
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."
-------------------------
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."
--------------------------
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."
--------------------------
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."
--------------------------
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.
--------------------------
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.
--------------------------
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."
----------------
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.
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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.
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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.
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