Class action lawsuit filed by AZ homeowners against management companies

The Law Offices of

J. Roger Wood, PLLC 1628 East Southern Avenue, Suite 9-310 - Tempe, Arizona 85282

(602) 324-7126 - info@jrogerwoodlaw.com

- Putting the “H” Back in HOA: Advice and Litigation for Arizona Homeowners -

For Immediate Release

Class Action Lawsuit Filed by Arizona Homeowners Against

Arizona HOA Management Companies Alleging Millions of Dollars of Damages for

Violations of Federal Debt Collection Laws and Arizona Law

(Phoenix, Arizona - September 20, 2012) - Two Arizona homeowners, have filed a class action lawsuit

against twenty-seven Arizona community association management companies (“CAMs”).

There are thousands of Homeowners Associations and Condominium Associations in Arizona. A

majority of those HOAs contract with management companies to assist the HOA and its Board with the

day to day operations of the Association. In addition to the every day tasks, some Arizona CAMs also

have made agreements to assist HOAs in collecting past due homeowner assessments.

The complaint alleges that these CAMs, acting as third-party debt collectors, have engaged in unlawful

activities in their attempts to collect past due assessments from Arizona homeowners. The plaintiffs

allege that the CAMs have and continue to pursue Arizona homeowners by charging collection costs

and related fees that are not authorized by law. Public court and county property records show that

CAMs have wrongfully filed and recorded thousands of liens, lawsuits and judgments in violation of the

federal Arizona Court Rules, the federal Fair Debt Collections Practices Act, the Arizona Constitution

and Arizona’s wrongful lien laws.

The plaintiffs allege that the CAMs’ collection activities violate Arizona’s rules regarding the

unauthorized practice of law. The public record shows that CAMs sign and record liens, file lawsuits,

negotiate the legal rights of third parties, appear in Court and collect fees for these services. Arizona law

does not allow non-lawyers to act on behalf of a third parties in legal matters. Such activities require a

law license and these violations trigger liability under federal debt collection laws. The CAMs’ unlawful

fees for these activities have cost Arizona homeowners millions of dollars.

The lawsuit seeks to end these unlawful practices and also seeks an award of damages for the named

homeowners and the thousands of other Arizona homeowners who have been victimized by these CAMs

and their unlawful collections activities.

The Law Offices of J. Roger Wood represents Arizona homeowners who have disputes with their

Homeowners Associations or Condominium. Watters and Watters are trial lawyers representing

Arizonans in civil litigation, including employment issues or toxic tort exposures. The firms are working

together on this case, seeking to right these serious wrongs. They can be contacted at

info@jrogerwoodlaw.com or legalhelp@watterslaw.com or at the telephone numbers listed above.

Watters & Watters, PLLC P.O. Box 65147 - Tucson, Arizona 85728

(520) 323-5910 - legalhelp@watterslaw.com

Getting receiver for homeowners association typically is bad idea - latimes.com

Getting receiver for homeowners association typically is bad idea - latimes.com: The association must pay the receiver for those services and fees that are court approved. Such fees are in addition to the association's assessed operating costs and can easily exceed thousands of dollars each month, depending on the size of the common interest development and the complexity of the problems to be solved.
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Five years of a lousy economy have pinched local governments to the point some have filed or are the verge of bankruptcy.  But receivership really isn't a good option for HOAs as Donie Vanitzian and the late Stephen Glassman explain in their L.A. Times column.  It essentially amounts to management fees on steroids with the receiver legally calling the shots to a far greater extent than even the most over-reaching HOA manager.

Why Sneering at Public Servants Comes So Naturally to Many of America's Richest Citizens | Alternet

Why Sneering at Public Servants Comes So Naturally to Many of America's Richest Citizens | Alternet: Wealthy people, after all, don’t typically use much in the way of public services. They don’t partake of public parks or public education. They belong to private country clubs and send their kids to private schools, and they royally resent having to pay taxes to support public services they don’t use.
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Indeed. Which is why I have been saying since about 1985 that municipalities should not be encouraging the spread of private communities. In the long run it erodes elite support for public services.

Condo board policies can help or hurt property values - chicagotribune.com

Condo board policies can help or hurt property values - chicagotribune.com:
"It takes more than a neat, attractive condominium or town house to make a sale at a fair price. Buyers have heard the horror stories of steep special assessments and deteriorating buildings. They expect the association to make a good impression as well as the unit. If it doesn't, they don't buy."
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Pamela McKuen of the Chicago Tribune offers some much-needed advice.

HOA principalities: To bee or not to bee one government under the Constitution � HOA Constitutional Government

HOA principalities: To bee or not to bee one government under the Constitution � HOA Constitutional Government
George Staropoli focuses on this intriguing sentence from the original article on the bee situation:

"Representative Glen Casada, who represents the Spring Hill neighborhood, has asked Tennessee Attorney General Robert Cooper for an opinion on whether or not the HOA is considered a political subdivision of the state."

And George says:"I hope Attorney General Cooper will uphold the US and Tennessee constitutions, knowing full well that even homeowners living in HOAs are US citizens and citizens of the State of Tennessee, with full rights, privileges and immunities."

HOA principalities: To bee or not to bee one government under the Constitution � HOA Constitutional Government

HOA principalities: To bee or not to bee one government under the Constitution � HOA Constitutional Government
George Staropoli focuses on this intriguing sentence from the original article on the bee situation:

"Representative Glen Casada, who represents the Spring Hill neighborhood, has asked Tennessee Attorney General Robert Cooper for an opinion on whether or not the HOA is considered a political subdivision of the state."

And George says:"I hope Attorney General Cooper will uphold the US and Tennessee constitutions, knowing full well that even homeowners living in HOAs are US citizens and citizens of the State of Tennessee, with full rights, privileges and immunities."

Texas Homeowner 'Lynches' Empty Chair Meant to Represent President Obama

Texas Homeowner 'Lynches' Empty Chair Meant to Represent President Obama: A Texas-based political blog brings news of a North Austin man who shocked some in his neighborhood by putting up a display in his front yard apparently meant to symbolize a lynched President Obama hanging from a tree.

The political statement consists of an empty chair tied to a tree branch and left to hang in the air.
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I expect the homeowner will soon be hearing from the HOA.

Backyard beehive center of dispute in Spring Hill neighborhood - WKRN, Nashville News, Nashville Weather and Sports

Backyard beehive center of dispute in Spring Hill neighborhood - WKRN, Nashville News, Nashville Weather and Sports: SPRING HILL, Tenn. -

A back yard beehive in a Spring Hill neighborhood is the center of a dispute.

The beehive belongs to Bryce Martin who placed the bees on his back deck in 2009.

"This beehive has been here about three-and-a-half-years approximately," Martin told Nashville's News 2.

Martin, who lives in the Ridgeport subdivision, said he was notified by the homeowners association that he is not allowed to keep bees in his yard.

"I can understand and I agree with the covenant to a certain extent, but the question is, does that apply to my beehive," Martin said.

He contends that HB 1671 pasted last year supersedes the HOA rules and allows him to keep bees on his property.

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To bee or not to bee...that is the question in this Privatopian principality.

Judge tosses case against 'Smartie' the chicken - Beaufort News - IslandPacket.com

Judge tosses case against 'Smartie' the chicken - Beaufort News - IslandPacket.com: Stewart said she was pleased the case was thrown out, but warned that the hen wasn't out of the woods yet. In the past two weeks, they have received two letters from the Mill Creek neighborhood association saying the bird must go.

"It has come to our attention that you are keeping a chicken on your property," said the Sept. 5 letter, sent by the Mill Creek at Cypress Ridge Homeowners Association. "We ask that you please find a new home (for) the chicken."

Stewart plans to appeal that order, as well, on grounds that their chicken is a pet, not "livestock or poultry."

"Our (homeowners association) will have to decide if she is a 'common household pet,'" said Stewart, citing language in the association's covenants.
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Double teamed by the muni and now the HOA.

Homeowners association members face violence

News from AP | The Dallas Morning News, dallasnews.com
LOUISVILLE, Ky. (AP) — Disagreements that boil over into shouting matches, finger-pointing and even fistfights are often part of neighborhood homeowners association meetings, but the kind of violence that erupted in Louisville leaving two dead is uncommon.
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I have some comments in this AP piece on the general issue of HOA violence.

US Housing Outlook Improves: 1.3 Million Households Gain Positive Equity - Yahoo! News

US Housing Outlook Improves: 1.3 Million Households Gain Positive Equity - Yahoo! News: CoreLogic's data shows a wide variance by state in home equity rates. It listed Nevada with the highest percentage of mortgaged properties in negative equity at 59 percent, followed by Florida (43 percent), Arizona (40 percent), Georgia (36 percent) and Michigan (33 percent). These top five states combined account for 34.1 percent of the total amount of negative equity in the U.S. Minnesota is above average with a 17.1% negative equity share. As more homeowners actually find that their home's equity has increased, it adds favorable opinion that the U.S. housing outlook is indeed improving.
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Some positive news.  But as the numbers show, much of Privatopia remains underwater.

In Prosecutors, Debt Collectors Find a Partner - NYTimes.com

In Prosecutors, Debt Collectors Find a Partner - NYTimes.com:
So you get a "Pay up or go to jail letter,"and...
"They bear the seal and signature of the local district attorney’s office. But there is a catch: the letters are from debt-collection companies, which the prosecutors allow to use their letterhead. In return, the companies try to collect not only the unpaid check, but also high fees from debtors for a class on budgeting and financial responsibility, some of which goes back to the district attorneys’ offices."
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Amazon.com: Sunken Condos: Donald Fagen: Music

Amazon.com: Sunken Condos: Donald Fagen: Music
That's quite a concept.

Dog owners asked to submit pet waste | WTVR.com – Richmond News & Weather from WTVR Television CBS 6

Dog owners asked to submit pet waste | WTVR.com – Richmond News & Weather from WTVR Television CBS 6: Residents recently were contacted by the Home Owners Association asking for a sample of their dogs DNA through their poop. The email says that dog droppings keep showing up in common areas. That’s why the board is pushing for DNA testing. The HOA is requesting every dog in the neighborhood have their DNA taken and put on file. That way when a mess is found they can have it analyzed and find the culprit.
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Another one of those repeating stories out of Privatopia: Only the name of the HOA changes.

Fed bets big in new push to rescue U.S. economy - Yahoo! News

Fed bets big in new push to rescue U.S. economy - Yahoo! News: WASHINGTON (Reuters) - The Federal Reserve launched another aggressive stimulus program on Thursday, saying it would pump $40 billion into the U.S. economy each month until it saw a sustained upturn in the weak jobs market.

The central bank's decision to tie its controversial bond buying directly to economic conditions was an unprecedented step that marked a big escalation in its efforts to drive U.S. unemployment lower. Stock prices jumped, while gold hit a six-month high as investors braced for faster inflation.

Unlike in its two previous bond-buying sprees, the Fed said it would only purchase mortgage-backed securities, hoping in part to unstick a housing sector that Fed Chairman Ben Bernanke called "a missing piston" in the U.S. recovery.
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As the perfessor has noted on this blog, housing is an important sector of the economy.  According to the the National Association of Home Builders, housing and housing services account for 17 to 18 percent of GDP.  Arguably a very significant part of the economy. 

But I question whether goosing up this important sector can alone do the trick, especially when mortgage rates are already at 50 year lows.  Homebuyers need stable jobs and incomes to meaningfully participate in the housing market and lenders won't lend unless they have them.  That requires increased confidence in all parts of the economy, not just housing.

Associated Press story coming on HOA violence

Bruce Schreiner of AP is looking for people with specific information on this issue.   

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Professor McKenzie:

Thanks so much for taking the time to chat with me. We’re just starting work on a story looking into the pressures of HOA boards and how that strain can turn violent. We want to write a balanced piece from the perspective of board members and aggrieved homeowners.

If you can let folks from both perspectives know we are looking for people to interview for this story, we would greatly appreciate it.

My phone number in the bureau is 502-583-7718. I am working on this project with fellow AP reporter Dylan Lovan in Louisville.

Regards,

Bruce Schreiner, The Associated Press, Louisville, Ky.
bschreiner@ap.org

Marjorie Murray's prophetic article from 1994

Marjorie Murray, who runs the Center for California Homeowner Association Law, read my post the other day about the bad deals cities have been making to get sports stadiums, and she sent me this note, which she has graciously allowed me to post here. Way back in 1994, Marjorie wrote an article for California Lawyer in which she pointed out how prison construction was at that time the "silver bullet" for local governments, and how it had the potential to turn bad on them...which it has. And CIDs fit right into this picture of searching for the silver bullet.  Read on:
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Evan: I read with interest the posting on sports stadiums as a failed economic development tool for local governments.

Cities and counties across the country are always looking for the "silver bullet" that will get revenues flowing into local coffers.

Nearly twenty years ago I wrote an article for California Lawyer on state prisons as an economic development tool for California local governments. ("Build it and They Will Come," (1994.)  Cities and counties, however, chose to ignore the not-so-hidden costs of building a prison in their midst: wear and tear on infrastructure, increased demand for housing needed by prison staff, increased need for police, etc. 

Now the prisons are so over-crowded that the courts have ordered inmates back to local governments, which will have to assume the cost of housing them in county jails.

A more recent "silver bullet" has been the thousands of California CIDs, seen by local governments as the ATM machine that would generate sky-high tax revenues.  Instead, hundreds of CIDs throughout the state have become wastelands of foreclosed homes whose owners can't pay their mortgages, let alone property taxes.  Just ask the City of Stockton if CIDs were the answer to their economic prayers.  The city declared bankruptcy in June after going on a spending spree in anticipation of all those tax revenues that never materialized.

There truly is no "silver bullet" for local governments.  No one prison, one sports stadium, or single  6000- home CID can rescue an entire city or county.  California local governments need to wake up to this fact.

Anyone interested in the 1994 California Lawyer article will find it here at this link: http://www.callawyer.com/clstory.cfm?pubdt=199404&eid=14430&evid=1


Marjorie Murray, President
Center for California Homeowner Association Law
www.calhomelaw.org
3758 Grand Ave., Suite 56
Oakland, California 94610

Wells Fargo Even Sorrier After Second Time It Foreclosed on Wrong House

Wells Fargo Even Sorrier After Second Time It Foreclosed on Wrong House
"Remember that nice couple we told you about last week — the Tjosaas family, whose home in Twenty-Nine Palms was “accidentally” foreclosed upon by Wells Fargo even though the couple didn’t even have a mortgage? Turns out: this was the SECOND TIME that Wells Fargo had “accidentally” foreclosed on that house by mistake, but it’s cool because Wells Fargo remains “deeply sorry” about both “unfortunate situations.” 
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I said when I posted on this the first time that somebody should go to jail. Now it turns out that Wells Fargo went after this house "accidentally" twice.  Ask yourself if any non-corporate person could do something like this--break into the same house illegally, twice--and not go to jail.

Playhouse Eviction | KSEE 24 News - Central Valley's News Station: Fresno-Visalia - News, Sports, Weather | Local News

Playhouse Eviction | KSEE 24 News - Central Valley's News Station: Fresno-Visalia - News, Sports, Weather | Local News: "This is ridiculous," says Becky Rogers-Peck, Aubree's grandma. "There's too much crime and everything else. These lawyers need to be worrying about other things that are way more important than whether or not my granddaughter has a pink playhouse."

From CCHAL: Disabled vet gets elevator (update)

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

2nd Victim In Homeowners Meeting Shooting Dies

2nd Victim In Homeowners Meeting Shooting Dies

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.

Online Voter Registration

Online Voter Registration
Making it easy for you!

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 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.”

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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.

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.

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?

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.

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...

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.”

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

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.

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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?

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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).

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.

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.

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.

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."

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

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:

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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

***************************************************************************************************************************************************

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

info@calhomelaw.org

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.

$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. 

DOWNSIZE ME: Giga-Living in Nano Houses - May/June 2012 - Sierra Magazine - Sierra Club

DOWNSIZE ME: Giga-Living in Nano Houses - May/June 2012 - Sierra Magazine - Sierra Club

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
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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.

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.
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So maybe it's good and maybe it isn't.  Thanks to Fred Pilot for the link.

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."
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