Lawmaker hopes state post would keep condo disputes out of court - chicagotribune.com

Lawmaker hopes state post would keep condo disputes out of court - chicagotribune.com
Proposal from state representative Elaine Nekritz to create a condo ombudsperson in Illinois.  Here is a link to the full text of the bill.   How about this section?

17		(3) Anecdotal accounts of abuses within condominium
18		communities create continuing public demand for reform of
19		condominium property law. This results in frequent changes
20		to the law, making it more difficult to understand and
21		apply and imposing significant transitional costs on
22		condominium communities statewide. By collecting empirical
23		data on the nature and incidence of problems within
24		condominium communities, a Condominium Ombudsperson will
25		provide a sound basis for prioritizing reform efforts,
26		thereby increasing the stability of condominium property

State Supreme Court holds key to condo assessment case - chicagotribune.com

State Supreme Court holds key to condo assessment case - chicagotribune.com
This is firewalled and requires registration, but it is a good story.  Thanks for the link to Trib reporter Pam McKuen, who really knows her stuff. Illinois treats condo owners as if they were tenants for assessment collection purposes, allowing associations to evict them using the housing court that landlords use. So--isn't turnabout fair play? Shouldn't owners be allowed to use "repair and deduct" just like tenants do?  If you want a copy of the appellate court opinion that is now being appealed to the Illinois Supreme Court, send me a private email at "ecmlaw at gmail dot com".

"When Lisa Carlson stopped paying her condominium assessments nearly four years ago, she never expected that her legal battle over a leaky roof, bulging drywall and cracked ceilings would wind up before the state Supreme Court.

An appeals court paved the way, ruling that Carlson, of Highland Park, could use her condo board's alleged failure to repair the roof as a defense against its efforts to evict her.

"I stopped paying my assessments because the bottom line is that the board refused to fix the water damage," Carlson said. "To me this has become a cause. This is about more than me."

The case has captured the attention of state and national condo association organizations worried that an Illinois Supreme Court decision in Carlson's favor will make it much more difficult to collect fees from recalcitrant residents."

-----------------
The case is:

2012 IL App (2d) 110473, *; 979 N.E.2d 891, **; 
2012 Ill. App. LEXIS 924, ***

SPANISH COURT TWO CONDOMINIUM ASSOCIATION, Plaintiff and Counterdefendant-Appellee and Cross-Appellant, v. LISA CARLSON, Defendant and Counterplaintiff-Appellant and Cross-Appellee.
No. 2-11-0473
APPELLATE COURT OF ILLINOIS, SECOND DISTRICT
2012 IL App (2d) 110473; 979 N.E.2d 891; 2012 Ill. App. LEXIS 924

June 27, 2012, Opinion Filed

HOA's Not a Favorite Subject of Incoming House Speaker | HOA Management | The Premier Home Homeowner Association Management Directory

HOA's Not a Favorite Subject of Incoming House Speaker | HOA Management:
"Incoming Speaker of the House Mark Ferrandino brings a very personal perspective� on homeowners associations to the Colorado General Assembly when it convenes� next week.
He’s not a fan."
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As time goes by more and more legislators will have personal experience with HOAs and condo associations, and the hyper-technical, smoke-and-mirrors, leave-it-to-the-industry approach that prevails today will likely change in favor of broader discussions. At least, I hope so.

Las Vegas HOA corruption probe continues

"Federal prosecutors have charged nearly 40 conspirators in the scheme to take over Las Vegas Valley homeowners associations. But more than four years after the investigation became public, they still haven't revealed the full extent of the massive scheme. New details likely will surface as prosecutors prepare for the next phase of the long-running investigation: the trial of Leon Benzer, accused of being the "architect" of the corruption scheme, and 10 other defendants indicted with him in January."

http://www.lvrj.com/news/hoa-corruption-probe-keeps-digging-193094241.html
--------------------
I was on Nevada Public Radio the other day with the state ombudsperson, an HOA lawyer, and an owner advocate.  It was a good conversation.  But there was something that kept going through my mind that I never got a chance to say, so here it is.

Nevada is one of the few states that has any state-level oversight of HOAs and condos.  They have the ombudsperson and a state commission, and they have a pretty comprehensive statutory scheme that was the result of also having a legislator, state Senator Mike Schneider, who knows a lot about this issue area and cares about it. Compared with the almost-total absence of oversight that is the norm in nearly all other states, Nevada is at the forefront of regulation of CIDs.  I mean, in nearly every other state, if you report something like this, there is nowhere to turn except the courts.  Every state and local government official will just tell you to go file a civil suit, which few people can afford to do.  And if somebody does that, after 7 years of litigation and $100,000 in legal fees they will have...what?  Maybe a declaratory judgment?  Maybe small damages, and an appeal by the association? Maybe a big fat goose egg? It is unpredictable.  And everybody in the neighborhood will hate you for making them pay the association's attorney fees. Private litigation may be necessary and can be effective in some cases, but clearly it can't be the only answer.

But in Nevada, there are other avenues.  However, despite all that Nevada has put in place, the biggest HOA corruption ring ever discovered in the United States was running a gigantic, multi-million dollar fraud operation involving at least 11 associations. They took over these associations and turned them into ATMs, using association funds to pay themselves and shake down developers and insurance companies. And it was the US Attorney's office and the FBI, not state officials, that brought down this empire of corruption.

So, I have to ask myself what the prospects are for effective regulation of CIDs, if something of this magnitude can happen right under the noses of state officials whose job it was to provide oversight. I am not blaming or even criticizing these officials. As the attorney on the KNPR radio show said, maybe there is no way (under the current laws) to prevent something like this from happening.  That is a scary thought.

And if that is true, as it may well be, I am saying that maybe we need to take a much more comprehensive look at what would really need to be put in place, if we were to take seriously the job of protecting CID unit owners and others against inappropriate, illegal, and even felonious actions of CID boards and their professionals.  If an oversight commission, an ombudsperson, and a detailed statutory scheme are inadequate to prevent multi-million dollar takeovers and ripoffs, what is needed?  Or are our state legislatures content to allow these predations to continue?

Maybe the time has come for federal congressional hearings. Maybe we need national legislation mandating much more public disclosure, transparency, and accountability from developers, local governments, CIDs, and the professionals who profit from their proliferation. Maybe more.

I would be interested in hearing what readers have to say.  However, I will say at the outset that those who keep saying they want to "abolish HOAs" need to understand that it isn't that simple, and they need to educate themselves about why this institution has spread so fast. Local governments and developers are very dependent on this form of housing, and that isn't going to change anytime soon. So...what is to be done?

NY Supreme Court sides with homeowners association in records dispute | Riverhead News Review

Supreme Court sides with homeowners association in records dispute | Riverhead News Review
Before going to court last year, the trio asked to see financial records of the Windcrest East Homeowners Association, a request that was granted provided the homeowners drove to Queens to see the records in person. After they could not settle the matter with the association, the homeowners filed the petition against its board of directors, saying the board violated state property law and community bylaws by storing the financial records away from their complex on Golden Spruce Drive in Calverton.

But Justice William Rebolini issued a judgment Jan. 24 in favor of the association, sayings laws were not violated and that the trip to Queens was not an undue inconvenience.

McKenzie and others talk about HOAs on KNPR

In case you want to hear me and three other people talking about HOA's in Nevada, here is the link to the KNPR (Nevada Public Radio) show from Thursday, 2/21/13.
http://www.knpr.org/son/archive/detail2.cfm?SegmentID=9762&ProgramID=2717

SB 33 Senate Bill - INTRODUCED

SB 33 Senate Bill - INTRODUCED: THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 53395 of the Government Code is amended to read: 53395. (a) The Legislature finds and declares that the state and federal governments have withdrawn in whole or in part from their former role in financing major, regional, or communitywide infrastructure, including highways and interchanges, sewage treatment and water reclamation works, water supply and treatment works, flood control and drainage works, schools, libraries, parks, parking facilities, open space, and seismic retrofit and rehabilitation of public facilities. (b) The Legislature further finds and declares that the methods available to local agencies to finance public works often place an undue and unfair burden on buyers of new homes, especially for public works that benefit the broader community. (c) The Legislature further finds and declares that the absence of practical and equitable methods for financing both regional and local public works leads to a declining standard of public works, a reduced quality of life and decreased safety for affected citizens, increased objection to otherwise desirable development, and excessive costs for homebuyers.
-------------
This bill if enacted could help reverse the trend of the past four decades to shift the burden of infrastructure costs to homebuyers and mandatory membership common interest developments that effectively impose a second layer of residential property taxation via HOA assessments.

Adolf Hitler stumping for votes in Indian election

News from The Associated Press: GAUHATI, India (AP) -- Adolf Hitler is running for election in India. So is Frankenstein.
-----------
And here I thought this was about an HOA election.

Snowplow driver covers up cars and blocks driveways—on purpose | The Sideshow - Yahoo! News

Snowplow driver covers up cars and blocks driveways—on purpose | The Sideshow - Yahoo! News: The snowplow driver calling himself Dogg has been ticking off a lot of people.

Mark Hussey, who plows the streets of Lowell, Mass., for a private contractor, made a video of himself as he buried cars in the white stuff and blocked driveways by pushing back the snow shoveled off of them. The worst part: He's loving every minute of it.
------------
As the perfessor would say, ain't privatization grand?

Zombie foreclosures: Borrowers hit with debts that won’t die | KDVR.com – Denver News, Weather & Sports from FOX 31 News in Denver, Colorado

Zombie foreclosures: Borrowers hit with debts that won’t die | KDVR.com – Denver News, Weather & Sports from FOX 31 News in Denver, Colorado: NEW YORK (CNNMoney) — Borrowers are discovering that their foreclosed homes are coming back to haunt them — long after they have moved out.

In these “zombie foreclosures,” borrowers move out after their bank schedules a foreclosure auction only to learn months or years later that the auction never took place or the bank never transferred the deed. That means the borrower still technically owns the house and is on the hook for property taxes, fees and homeowners’ association dues.
------------
Zombie mortgagees team up with HOA Frankensteins.  You can check out any time you like, but you can never leave.

Rumble at California country-club meeting - Associated Press - POLITICO.com

Rumble at California country-club meeting - Associated Press - POLITICO.com: RANCHO MIRAGE, Calif. - Fists of fury flew in ritzy surroundings in the Mojave Desert this weekend. The latest big fight in Las Vegas? Nope. A homeowners’ association meeting at a Palm Springs-area country club.

The meeting at the seemingly genteel Springs Country Club, a private golf and tennis club and gated community in Rancho Mirage, turned into an all-out brawl that hospitalized two people when members threw punches - and even chairs - over a board of directors election.
------------
Another account of the rumble in Privatopia.  You want somma dis?

Brawl breaks out at HOA meeting in Rancho Mirage | The Desert Sun | mydesert.com

Brawl breaks out at HOA meeting in Rancho Mirage | The Desert Sun | mydesert.com:
"According to Riverside County Sheriff’s Deputy Myling Bordeau, at about 4 p.m., deputies responded to numerous calls regarding a fight at The Springs’ clubhouse at 75 Columbia Drive. The brouhaha erupted after the results of the board member election were announced, Bordeau said. “Some people were upset that a certain person won and began yelling at him and pushing him,” Bordeau said. The yelling and pushing quickly escalated to chair throwing, fist fighting and tackling."
------------
And a security guard drew his gun.  Fun and games all the way around.

Cactus Springs board members claim HOA president misused funds - www.ktnv.com

Cactus Springs board members claim HOA president misused funds - www.ktnv.com:
"It looks like fraud," explained Cactus Springs board member Rain Liu. Rain and another board member, Linda Laine, filed a lawsuit in January because of what they call a massive fraud perpetrated against the HOA. The lawsuit calls Hays the mastermind of ring of thieves who are accused of using up more than $300,000 of homeowners money in just seven months.

----
After so many incidents of fraud and embezzlement across the nation, some running into the millions of dollars, you might think that state legislatures would be writing laws to create oversight of HOA and condo association finances. You might think they would be concerned about protecting owners who are at risk of losing a great deal of money from unaccountable board members, officers, and professionals. You might think the massive Las Vegas fraud ring alone would be enough to wake up legislatures. But you would be wrong.

Suspects Arrested In Connection With Grate Thefts Along Interstate 95 � CBS Philly

Suspects Arrested In Connection With Grate Thefts Along Interstate 95 � CBS Philly
Ain't privatization grand?  Guess who has been stealing the metal grates that cover big gaping drains on the interstate highway?

"According to PennDOT, they have been “mysteriously disappearing” over the last year, putting drivers in danger. Then came news of an arrest on Tuesday of four men, subcontractors hired by PennDOT to maintain the highways."

The Era Of Giant Chain Stores Is Over - Business Insider

The Era Of Giant Chain Stores Is Over - Business Insider
From James Kunstler:


"Though the public hasn't groked it yet, WalMart and its kindred malignant organisms have entered their own yeast-overgrowth death spiral. In a now permanently contracting economy the big box model fails spectacularly. Every element of economic reality is now poised to squash them."

Kabul’s ‘Car Guantanamo,’ Where Vehicles Rot and Trust Goes to Die - NYTimes.com

Kabul’s ‘Car Guantanamo,’ Where Vehicles Rot and Trust Goes to Die - NYTimes.com

Car Gitmo.  Sounds like a bad dream out of George Staropoli's "New America of HOA Land."

The Orwellian world of Privatopia

Check out this proposed Arizona legislation that bars local governments from generally mandating common interest developments -- unless they choose to do so for a specific development.  Loophole.  Mack truck.

you guys are weird: I think I would rather live in a haunted house than one governed by a Homeowners' Association

you guys are weird: I think I would rather live in a haunted house than one governed by a Homeowners' Association
Thanks to Shu Bartholomew for this link. It's a funny reaction to the Washington Post article linked below.

Pay assessments first, challenge them later!

Homeowners association: Homeowners association bill proposed - OrlandoSentinel.com

"Homeowners behind on their community-association dues would have to make good on the full amount before fighting the charges, under proposed legislation that would also bring state oversight to Florida's homeowner associations. Sen. Alan Hays, R-Umatilla, filed a bill this week that would essentially fast-track community associations' ability to foreclose on houses or condo units with unpaid dues. If a homeowner did not deposit the unpaid balance in a special registry as directed by a court, the association could foreclose immediately on the house. Currently, owners can contest associations' charges in a process that can stretch out for years."

---------

With condo associations becoming insolvent, the industry wants to keep them from going under. The solution? Make the owners pay first, challenge assessments later. Making life harder for owners is the default solution for most problems, it seems. 

Fairfax homeowners group humbled by court battle with residents - The Washington Post

Fairfax homeowners group humbled by court battle with residents - The Washington Post:
The feud that consumed Fairfax County’s Olde Belhaven would span four years and cost the community as much as $400,000, and it was ignited by one of the smallest of sparks: an Obama for President sign. The modest placard Sam and Maria Farran planted in their yard during the 2008 election put them on a collision course with the neighborhood homeowners association. It was four inches taller than the association’s covenants allowed....“Their growth means there are a lot of people in HOAs who haven’t necessarily bought into the lifestyle,” said Evan McKenzie, a University of Illinois professor who has written two books on HOAs. “Some like the higher level of rulemaking, but others don’t like the fines and control. You have conflict when these groups come together.”
---------------
Good story from the Washington Post on this horribly expensive lawsuit.

How A Homeowners Association Went Bankrupt Because Of One Obama Yard Sign – The Consumerist

How A Homeowners Association Went Bankrupt Because Of One Obama Yard Sign – The Consumerist: Back in 2008, a couple in Olde Fairhaven, Virginia put up a sign in their lawn showing their support for a presidential candidate. This simple action led to a feud that has raged for years and cost the neighborhood homeowners association hundreds of thousands of dollars. Now the HOA is broke, and the central “town square” that turns a clump of townhouses into something resembling a community is up for sale.
-------------------
Well played, HOA board of directors and law firm. Did you learn anything?  Did any other HOA board learn anything?

Honduras allows corporations to set up private cities

Inside Story - Al Jazeera English:
"Honduras revives the idea of the charter city - free-market enclaves where corporations can operate virtually under their own rules.

"Honduras is a place that has been devastated for literally centuries by the oligarchs. But now there are some laws that get in their way and they would like to get rid of those laws .... They simply see this as yet another way to increase their wealth at the expense of other folks."

- William Black, a professor of economics and law"
------------------------------

Fairfax homeowners group humbled by court battle with residents - The Washington Post

Fairfax homeowners group humbled by court battle with residents - The Washington Post The feud that consumed Fairfax County’s Olde Belhaven would span four years and cost the community as much as $400,000, and it was ignited by one of the smallest of sparks: an Obama for President sign. The modest placard Sam and Maria Farran planted in their yard during the 2008 election put them on a collision course with the neighborhood homeowners association. It was four inches taller than the association’s covenants allowed. “Need I say more! This would lead to chaos,” a neighbor fretted in an e-mail about the precedent that would be set if the sign wasn’t removed. “Our property values would be put at risk.”
-----------
The horror!  The horror!  HOA Apocalypse Now!  (The perfessor is quoted)

TEXAS – Jury Decides for Homeowners – $1,356,880 Awarded Homeowners; $616,678 for Attorney Fees « HOA Reform Coalition

TEXAS – Jury Decides for Homeowners – $1,356,880 Awarded Homeowners; $616,678 for Attorney Fees « HOA Reform Coalition
" Houston – Years of frustration and lawsuits finally ended Friday February 8, 2013, when a group of homeowners at The Landing Condominium in El Lago, Texas, won their case before a Harris County jury. Maintaining that the Board of Directors of the Association failed to follow the Condominium Declaration, Bylaws and the Texas Property Code after Hurricane Ike, the homeowners, led by Mary Lou Durham and Lee Ann Wheelbarger, sought and won their damages and attorney fees for the demolition of their condominiums.

Attorneys Andy Taylor, Mitchell Katine and Gregory Cagle represented the homeowners in this case."

USA v. Mariner's Cove Townhomes Association

As part of the Hurricane Katrina repairs, the federal government used eminent domain to demolish 14 townhome units, and paid "just compensation" to the unit owners. The townhome association demanded compensation for loss of assessment revenue.  The Fifth Circuit Court of Appeals ruled that no compensation is required because, "...the right to collect assessments is a real covenant that functions like a contract and...is not 'directly connected with the physical substance of the land.'"  The court notes that the majority view requires compensation for lost assessment revenue when units are taken, but then goes on to adopt the minority view.  Why?  Private covenants might unduly burden government's ability to exercise the power of eminent domain, and this intriguing language:  "Another theory is that real covenants
are akin to contracts; that no contract of private persons can make acts done in
the proper exercise of governmental powers, and not directly encroaching upon
private property, a taking; and that “contracts purporting to do this are void, as
against public policy.” United States v. Certain Lands (In re Newlin), 112 F. 622,
aff’d, 153 F. 876 (C.C.R.I. 1907)."

Judge who shoved deputy found not guilty by reason of insanity - chicagotribune.com

Judge who shoved deputy found not guilty by reason of insanity - chicagotribune.com

This is not from The Onion:
 
"Brim has been hospitalized five times since her 1994 election after going off her anti-psychotic meds, according to testimony. In 2004, firefighters removed her from a courtroom and took her to a hospital, said psychiatrist Matthew Markos. Brim was hospitalized for 20 days after her arrest last year, he said. Markos said at the time Brim was hospitalized, she was catatonic, confused, irrational and showing signs of paranoia and psychosis. Brim was re-elected to another six-year term as a judge in November. She was backed by the Cook County Democratic Party as well as the Committee for Retention of Judges in Cook County, a campaign committee funded by judges."
----------------

Yes, you read that correctly. Brim has been on the bench in Chicago since 1994, despite being psychotic.  She has been psychiatrically hospitalized five times, most recently last year, which didn't prevent her from being re-elected for another 6 years with the backing of the Cook County Democratic Party and the judges' retention committee.  Sure, we all have our stories about judges, but I invite you to top this one.

In rush to urbanize, China flattens 700 mountains

In rush to urbanize, China flattens 700 mountains:
"Despite environmental concerns about the project's feasibility and long-term impact on this arid, polluted region, a government-hired private developer is slicing the tops off 700 low-level, barren mountains and filling in the valleys to create a 10-square-mile base for "Lanzhou New City," 8 miles from Gansu's grimy capital."
------------------------
Urban planning, Chinese style.  "I am striving to win honor for Chinese people," says Yan, nicknamed "the Bulldozer."

Proposed bill would help homeowners in gated communities | PoconoRecord.com

Proposed bill would help homeowners in gated communities | PoconoRecord.com: Newly introduced Pennsylvania House Bill 319 aims to give property owners better access to the records in their associations by requiring all association records, with a few exceptions, be accessible for inspection and duplication by owners.

"With alarming frequency, people come to me with frustrations about getting access to association records," said Rep. Mike Carroll, D-118.

Carroll is a co-sponsor of the bill, which has been introduced several times before, but has never had enough traction to get to the floor for discussion.
 ------------------
It's hide the pea time again as the HOA bar gins up frivolous disputes and legal fees.  "Ain't nuttin to it," Jelly sez.  "Like shootin fish in a barrel."

Corporatism in America: IL Supreme Court grants HOA police powers to arrest and detain � HOA Constitutional Government

Corporatism in America: IL Supreme Court grants HOA police powers to arrest and detain � HOA Constitutional Government
George Staropoli's reaction to the horrendous Poris v. Lake Holiday POA case from the Illinois Supreme Court that I reported on below.  He highlights a number of quotations from the opinion and adds his comments.


"In Poris we have another instance of a state supreme court holding private contracts superior to the Constitution (See NJ supreme court opinion in Twin Rivers[iii]).  Apparently, the only thing that the Constitution has to say is an absolute “no contract interference.”  Note how the court adopted a narrow reading of the laws as it parsed and examined the precise wording of the laws, not stepping back in its alleged legal wisdom seeing only the trees and not the ugly forest. The court cleverly ignored the question of detaining non-members, and the question of public streets."


His conclusion:

"I can summarize the Illinois opinion with the simple statement by William Pitt, part of which appears on the façade of the Arizona Supreme Court building:  Unlimited power is apt to corrupt the minds of those who possess it: and this I know, my lords, that where law ends, tyranny begins!'"

Death threats for woman feeding feral cats in Mesa | azfamily.com Phoenix

Death threats for woman feeding feral cats in Mesa | azfamily.com Phoenix
So this story says that a lady who lives in an HOA is feeding the feral cats. Her HOA fines her. But then a board member, who happens to be a cat lover, forwards to her an email that was sent from another member of the HOA Board of Directors to the entire board, laying out the options for dealing with the situation:

"This lady is another looney tune character. Why would we be blessed with another one ????
How about if we informed her that we will take action in regards to her activities of feeding the feral cats on the property.
A. We will trap the cats and dispose of.
B. We could set out a poison control substance ounce for ounce of what she feeds the cats.
C. Just shoot her and put her out her misery....
Best I can think of that may or may not be legal....."
----------------------
 This is the sort of irresponsible nonsense that has come to be associated with HOAs in the public mind.  We have untrained, unsupervised volunteer directors making decisions on all sorts of important matters, with virtually no oversight. Many of these directors act as though they can say and do whatever they want, because nobody is watching. Thanks to Fred Fisher for the link.

Radio host charged in $10 million mortgage fraud

Radio host charged in $10 million mortgage fraud

"A south suburban attorney and national radio host who bills himself as the  "people's attorney" has been charged in a $10 million mortgage fraud scheme, federal officials announced today. Warren Ballentine was indicted last week by a federal grand jury for defrauding lenders by scheming with others to obtain nearly 30 bogus mortgage loans, according to the U.S. Attorney's office in Chicago."

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

This sort of thing was rampant in Chicago during the housing boom years. The US Attorney claims he did this between 2004 and 2006.  These days, the scams involve many of the same old mortgage fraudsters (the ones who didn't get caught) doing "mortgage foreclosure rescue" scams. They get an up-front payment from somebody facing foreclosure and then do nothing.  

Socialist Willy Wonka - place chicago il date jan 28th temp 60 f snow none t

Socialist Willy Wonka - place chicago il date jan 28th temp 60 f snow none t
One of my students took my comments and created a new take on an internet meme.

PTO, HOA embezzler given prison time, restitution - Local News

PTO, HOA embezzler given prison time, restitution - Local News: Under the restitution portion of the sentence, she will pay $19,376.97 to the Aylor PTO, $32,315.29 to the Bass-Hoover PTO and $67,620.14 to the Georgetowne Court Homeowners Association.
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Isolated incident No. 685,689.

Illinois Supreme Court sides with homeowner association police over resident - Chicago Tribune

High court sides with homeowner association police over resident - Chicago Tribune:
Last year, an appeals court found that the association could not stop and detain drivers for violating homeowners association rules. The court found that Lake Holiday could be found liable for Poris' false imprisonment claim and that the association's use of amber-colored flashing lights on its squad cars was unlawful.

But the Illinois Supreme Court on Friday reversed each of those findings, ruling that Lake Holiday was allowed to enforce its bylaws against residents and that courts "generally do not interfere with the internal affairs of a voluntary association."

"We can discern no logic in allowing a private homeowners association to construct and maintain roadways but not allowing the association to implement and enforce traffic laws on those roadways," Judge Robert Thomas wrote.
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If you needed another reason to avoid homeowners' association, here you have it. Now in Illinois HOA employees dressed  like cops can pull you over with flashing lights and give you a ticket.  The line that courts "generally do not interfere with the internal affairs of a voluntary association" is horrifying in this context. I will have more on this, including a link to the opinion, later.
UPDATE:  1/27/13:  Here is the link to the opinion at the Illinois Supreme Court website.
Second Update:  1/28/13: You can watch the oral argument at this link. Just scroll down to the case of Poris v. Lake Holiday POA.

AZ looking at special taxing districts for certain HOAs � HOA Constitutional Government

AZ looking at special taxing districts for certain HOAs � HOA Constitutional Government
From George Starapoli's blog--he calls our attention to a bill that would prohibit land use approval bodies from mandating the creation HOAs, unless certain improvements are involved in the subdivision (such as a golf course, a lake, etc.). The alternative is to create a special improvement district.

Illinois bond rating sinks to worst in the nation - Chicago Sun-Times

Illinois bond rating sinks to worst in the nation - Chicago Sun-Times:
"Citing inaction on pensions, a prominent Wall Street bond-rating agency downgraded Illinois’ bond rating Friday, making the state the nation’s worst credit risk."
--------------
I love this use of the word "inaction."  What inaction?  Standard & Poors and the rest of the financial elite think the state legislature should have violated the state constitution by cutting state employee pensions.  But the real inaction occurred over the last 40 years or so.  State employees (like me) put 8% of their gross pay into the pension fund. It gets taken right off the top before we get our paychecks. The state is supposed to contribute 9.6%, but for the last four decades the state legislature has consistently and intentionally refused to do that, even though it is in fact a modest contribution when compared with other pension plans.  But, in any event, it is the deal they made, and they make us comply with it while refusing to pay their share.  Instead, the state has in essence been borrowing from the state employees pension fund to pay its bills, giving itself one "pension holiday" after another.

We, the employees, have lost not only the principal of those contributions, but all the investment income we would have realized during that time when the stock market was booming. Now the pension fund is seriously underfunded. It is a defined benefit plan, meaning that ultimately the state owes us a certain benefit payment, so the state might someday find itself having to dig very deep to pay us, which would wreak havoc with the rest of the state budget.

So, what is the solution to this problem?  New employees are already getting a reduced pension plan, which is fine because that's what they agreed to when they were hired. But what about currently retired people, and those of us who were hired long ago and haven't retired?  We are the target. According to the investment class and their party, the Republicans, and their newspaper, the Chicago Tribune, the way forward is for the state legislature to cut our pension benefits.  There are several ideas, but all of them come down to cutting the payments that are mandated by the contract.   It is an indication of just how morally bankrupt the financial sector has become that the shocking injustice of such a proposal is utterly irrelevant to them.  Moreover, it is unconstitutional.  The Illinois constitution provides as follows, at Article 13, Section 5:

"SECTION 5. PENSION AND RETIREMENT RIGHTS
    Membership in any pension or retirement system of the
State, any unit of local government or school district, or
any agency or instrumentality thereof, shall be an
enforceable contractual relationship, the benefits of which
shall not be diminished or impaired."

Any literate human can see that this provision precludes the elite-sponsored effort to cut our pensions in order to solve the problem the state created by welching on its obligations to us for the last four decades. But, having ignored the immorality of their position, ignoring its illegality is child's play.  The advocates of "pension reform," as they call it ("pension theft" would be the accurate term) think they should pass the law and let public employee unions challenge it in court, where the advocates think maybe the Illinois Supreme Court can be persuaded to ignore the state constitution and go along with it. Basically, it is the legally and morally vapid argument of a hostage taker:  the state legislature has created a financial crisis that threatens to wreck the state financially, and the only way out, they say, is to screw the employees--the only party to the contract that has always honored it. The state wants to cheat the employees out of billions of dollars, on the grounds that they have been cheating us for so long that now there is no other course open except to cheat us again. The "inaction" of the previous legislative session means only that the issue is carried forward.

As for the rating agencies, where were they all these years when the state was setting up this situation by underfunding the pension funds? Where was the ratings downgrade thirty years ago in response to "pension holidays," when forcing the state legislature to act responsibly would have prevented the current crisis?  Oh, wait, I remember.  S&P and the others were enthusiastically giving AAA ratings to residential mortgage backed securities that eventually cratered and wrecked the world's economy, contributing further to the budget crisis that faces states like Illinois.

Want to live like a king? The American castle homes you can buy | Mail Online

Want to live like a king? The American castle homes you can buy | Mail Online
I want one.

Backboard seizures put residents on defense | county, hoops, public - News - The Orange County Register

Backboard seizures put residents on defense | county, hoops, public - News - The Orange County Register: In early January, the county responded to complaints in the Wagon Wheel and Las Flores HOA communities, according to Jessica O'Hare with Public Works. They found eight hoops on county right of way and issued notices, with one hoop targeted for impound soon.

However, O'Hare said most of the county's backboard complaints come from Ladera Ranch, leading to sweeps there about once a year.

"Portable basketball backboards have always been an issue in Ladera Ranch," said Jett McCormick, chairman of the Ladera Ranch Civic Council.

The community's HOA rules prohibit backboards from being left on the street when not in use, McCormick said. But the association doesn't have jurisdiction over public streets, leaving enforcement to the county.
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Apparently jurisdictional matters aren't an issue in Arizona, where George Staropoli has reported on state legislation barring HOAs from asserting parking jurisdiction over public rights of way.   Which strikes me as nonsensical since Privatopia by definition is a creature of private and not public jurisdiction.

Have you been living under a rock? Mexican family converts 131-foot stone in desert into a home | Mail Online

Have you been living under a rock? Mexican family converts 131-foot stone in desert into a home | Mail Online
Wow--Talk about a house with a view...

‘Nuclear Holocaust’ & ‘Sh!tBag’ Among Clever Names Morgan Stanley Bankers Gave To Toxic Mortgage-Backed Security – The Consumerist

‘Nuclear Holocaust’ & ‘Sh!tBag’ Among Clever Names Morgan Stanley Bankers Gave To Toxic Mortgage-Backed Security – The Consumerist

And they aren't even going to prison. Thanks to Mystery Reader for this link.

In Carrboro, working-class condo owners must pay $5,400 fee—in three weeks | Orange County | Indy Week

In Carrboro, working-class condo owners must pay $5,400 fee—in three weeks | Orange County | Indy Week: The fees are intended to generate nearly $1.8 million in funds to repair the long-crumbling apartment complex. Many tenants say previous ownership, which sold the property last summer, neglected to maintain it, leaving behind shabby apartments and dangerous walkways.

A 10-year-old boy tumbled through a deteriorated stairway at the complex on Nov. 24, three days after Collins Crossing owners notified condo owners of their plan to impose assessment fees.

Carrboro officials gave owners 90 days to make repairs. In the meantime, condo owners have to find the cash within three weeks. It's unclear what penalty tenants will face if they don't pay, although Carrboro Mayor Mark Chilton says management could impose a lien on the condos. Some residents fear foreclosure.
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Looks like this condo complex has fallen into Tyler Berding's Phase 3 death spiral to the point it resembles an apartment complex with a landlord more than a condo HOA.

Would you want to live on a housing estate like this? New Chinese 'villas' look more like concrete slums | Mail Online

Would you want to live on a housing estate like this? New Chinese 'villas' look more like concrete slums | Mail Online
Well...no. But it is the logical extension of some of the more unfortunate trends in real estate development that we can see close to home.

Pruning Shears: Utopian colonies and the deep roots of the Occupy Movement

Today's CID housing is frequently marketed to tap into people's yearning for a strong sense of community. What is usually missing from the product they deliver, however, is a common sense of values. But from the late 19th century through the early 20th, many people set up their own utopian communities, some religious and some socialistic.  This blog post points out that some of these socialistic communities were similar in a number of ways to the Occupy movement.  It is in part a reaction to a book concerning authoritarian tendencies on the left.  But the larger issue is how to structure rights, control, and privacy in common living arrangements. Today's CID activists tend to be focused on how abusive current forms of CID government are, and some of them offer state law reforms to protect owners, while others demand abolition. But the greater challenge is how to structure CIDs so that they offer residents a richer social life than they would have living in an apartment or detached single family home in the stereotypical faceless suburb.  Is such a goal realistic, or just a fantasy?   

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"What is really fascinating (and surprisingly relevant) is Ellis’ coverage of utiopian communities that began to form in the late nineteenth century. Inspired in part by proto-science fiction like Edward Bellamy’s Looking Backward, these communities withdrew from the larger society in an effort to construct the one they envisioned. While the only separatist type impulses these days seem to be on the right, their governance had striking similarities to Occupy - including its weaknesses....The near-unanimous vote of the general assembly resembles the consensus model used by Occupy. As our group noted last year, a consensus model eventually works to the advantage of those with the most time. Getting 90% approval might represent the overwhelming view of the majority, but it might also might represent 90% of the handful left after an extended and frustrating filibuster."

TV Guide - Today's News: Our Take - Holly Madison Leaves Home After Dispute Over Giant Dog House - DeRidder, LA - Beauregard Daily News - Beauregard, LA

TV Guide - Today's News: Our Take - Holly Madison Leaves Home After Dispute Over Giant Dog House - DeRidder, LA - Beauregard Daily News - Beauregard, LA: Holly Madison's relationship with her homeowners association has really gone to the dogs.

The former Girls Next Door star is selling her home in Southern Highlands, Las Vegas, because of an ongoing dispute with the association over a giant pink dog house she built in her backyard, according to Las Vegas Weekly.

High court rules a house is a house, even if it floats | Nation & World | The Seattle Times

High court rules a house is a house, even if it floats | Nation & World | The Seattle Times: Lawyers for the Seattle Floating Homes Association and a similar association in Sausalito, Calif., praised the Supreme Court ruling.

The San Francisco law firm Munger, Tolles and Olson filed a friend of court brief on behalf of the two floating-homes associations, arguing that they should be regulated as houses and not under maritime law as vessels.

Developer pitches $1B commonwealth for Belle Isle | The Detroit News | detroitnews.com

Developer pitches $1B commonwealth for Belle Isle | The Detroit News | detroitnews.com:
Detroit — As the broken city thinks big and radically about its future, a developer is stepping forward with a revolutionary idea: Sell the city's Belle Isle park for $1 billion to private investors who will transform it into a free-market utopia. The 982-acre island would then be developed into a U.S. commonwealth or city-state of 35,000 people with its own laws, customs and currency.
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Here we go again. Another libertarian utopia, to go with Paulville, TX, those proposed oil platform communities out at sea, Glenn Beck's planned utopia, The World (ocean liner), and a bunch of others. Can't we just give them Wyoming or something?

Central figure, conspirators in HOA scheme indicted by federal grand jury - News - ReviewJournal.com

Central figure, conspirators in HOA scheme indicted by federal grand jury - News - ReviewJournal.com: "Leon Benzer, the former construction company boss at the center of a long-running investigation into fraud and corruption at homeowners associations, and 10 other defendants were indicted Tuesday by a federal grand jury. The long-awaited indictment is part of the final Justice Department push to charge conspirators in a massive scheme to take over homeowners associations across the Las Vegas Valley between 2003 and 2009."
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There have been 28 guilty pleas so far. Now we have 11 more indictments.  Nevada is one of only a handful of states that has an ombudsperson and/or a government agency with special responsibilities regarding common interest housing. But nonetheless, the most massive HOA/condo association fraud ever uncovered happened right under their noses. What do we conclude from that? How about:  this is what privatization without accountability looks like. This is what happens when state and local governments hand over major responsibilities--including the power to tax, run elections, enforce rules, and make major decisions that affect people's lives--to unpaid, untrained volunteers who have to meet no minimum qualifications and who have no meaningful oversight.  There have been other frauds and embezzlements across the nation. There will be more to come. Will our public policy makers adopt common sense reforms to protect people?

HOA President Threatens To Sue Newspaper For Using Neighborhood’s Name In Article – The Consumerist

HOA President Threatens To Sue Newspaper For Using Neighborhood’s Name In Article – The Consumerist
Followup to the story below from an Indiana newspaper that went into detail about problems with HOA governance, and included by name Stonecreek Arbors, in Vandenburgh County, Indiana.  The Consumerist is reporting that the president of the Stonecreek HOA sent the following to the newspaper, after being interviewed, proving once again (as if any additional proof were needed, after all these years) that many HOA leaders need to get a clearer understanding of the limits on their powers.

“[T]his notice also requires you not to at any measure mention anything regarding my name, any resident of Stonecreek, NOR will we ALLOW any of your printing in any article regarding Stonecreek at any time in any publication… You will be held liable for any violations of this letter and notice/request in this email. If we find/discover you have mentioned Stonecreek in any legal matter their (sic) will be action toward yourself as well as any print paper you represent in the media article.

“You may contact any HOA in the County of Vanderburgh, the State of Indiana, but Stonecreek will not PERMIT OR ALLOW YOU our legal name in any future article.”

Independence Park to be Glenn Beck's 'Galt's Gulch' | Right Wing Watch

Independence Park to be Glenn Beck's 'Galt's Gulch' | Right Wing Watch
"On his program last night, Beck revealed that his intention to "go Galt" is quite literal, unveiling grandiose plans to create an entirely self-sustaining community called Independence Park that will provide its own food and energy, produce television and film content, host research and development, serve as a marketplace for products and ideas, while also housing a theme park and serving as a residential community.

At the center - in the middle of the lake that is itself larger than all of Disney Land - Beck (with the help of David Barton) will create a massive "national archive"/learning center where people can send their children to be "deprogrammed" and elected officials can come to learn "the truth."

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To which I can only say, "Don't let the door hit you where the dog should have bit you."

Woman says HOA demanded microchip in her dog � Evansville Courier & Press

Woman says HOA demanded microchip in her dog � Evansville Courier & Press
With a bunch of quotes from me, which you can read if you scroll down.  Sample:
"If you're going to buy a house, you ought to know well in advance of even making an offer on the house not only that there is an association, but what the rules are and what the finances of the association are," he said.
and:

Homeowners might spare themselves the grief of being under the thumb of domineering, combative HOA officials, McKenzie said, by meeting them before buying. But he conceded they  [the board members] would have no real incentive to agree to such a meeting. "You'd want to find out what the climate is around here, what the attitude is toward owners, really to find out how strictly rules are enforced and how assessments are collected," he said. "You might ask some questions about how strict people are. Is it neighborly, is it friendly?"

Note: The reporter asked me if meeting the board members in advance would be a good idea, and I said it would, but that the BOD members have no obligation to do that and it hardly ever happens. I also pointed out that this sort of meeting does occur in housing cooperatives, and it probably contributes to the lower level of conflict found in co-ops.

New federal indictment coming soon in HOA scheme - News - ReviewJournal.com

New federal indictment coming soon in HOA scheme - News - ReviewJournal.com:
"Federal prosecutors are preparing to seek a long-awaited indictment as early as next week in their final push to charge conspirators in a massive scheme to take over Las Vegas Valley homeowners associations. The Las Vegas Review-Journal has previously reported that as many as a dozen defendants could be named in the corruption indictment being sought by attorneys with the Justice Department's Fraud Section in Washington, D.C."
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There have been 28 guilty pleas so far. If the article is correct in saying that as many as twelve new indictments are coming, it would make the network of schemers as many as forty people. Contemplate that: an industry so troubled that, in a single mid-sized city, there is a fraud network encompassing forty people.

Brockton, Massachusetts, Considers Eminent Domain To Address Foreclosures

Brockton, Massachusetts, Considers Eminent Domain To Address Foreclosures:
In a move that’s pitting grassroots housing activists against Wall Street interests, the City Council of Brockton, Mass., decided this week to commission a study into the feasibility of using eminent domain powers to seize the mortgages of local residents struggling to pay off their loans.
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This idea has popped up elsewhere. It will be interesting to see what happens if and when a city does this and it gets challenged in court.

Former Clinton Township housing cooperative employee gets 3 years for theft - The Macomb Daily

Former Clinton Township housing cooperative employee gets 3 years for theft - The Macomb Daily:
A 36-year-old woman was ordered to spend more than three years in prison and pay $79,000 in restitution for stealing from the Clinton Township housing cooperative for which she worked.
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Yet another one of those isolated instances...

Mayor Rahm Emanuel to announce Midway privatization committee - Transportation News - Crain's Chicago Business

Mayor Rahm Emanuel to announce Midway privatization committee - Transportation News - Crain's Chicago Business:
Midway is one of Chicago's two major airports.  The first attempt to privatize it failed before the deal could be consummated.  Probably a good thing when you consider the disastrous parking meter privatization deal.  Now, here they go again.  Here's my favorite line:  "The committee will be given the authority to hire an independent auditor to make sure the arrangement bears little resemblance to the botched parking meter deal, according to the source."

New mortgage rules block no-doc loans, limit debt - Chicago Sun-Times

New mortgage rules block no-doc loans, limit debt - Chicago Sun-Times

"Lenders will be required to verify and inspect borrowers’ financial records. The rules discourage them from saddling borrowers with total debt payments totaling more than 43 percent of the person’s annual income. That includes existing debts like credit cards and student loans...The rules limit features like teaser rates that adjust upwards and large “balloon payments” that must be made at the end of the loan period. They include several exceptions aimed at ensuring a smooth phase-in and protecting access to credit for underserved groups. For example, the strict cap on how much debt consumers may take on will not apply immediately. Loans that meet separate federal standards also would be permitted for the first seven years. Balloon payments would be allowed for certain small lenders that operate in rural or underserved communities, because other loans may not be available in those areas."

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9 Worst Recession Ghost Towns in America

9 Worst Recession Ghost Towns in America:
"America has a new kind of ghost town, haunted by the spirits of the recession. Developers caught up in the runaway housing boom overbuilt and oversold lots, houses and condos, leaving neighborhoods barren with uninhabited model homes, eerily desolate luxury condos, and abandoned McMansions in the aftermath of the collapse."
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These are reminders of lessons that will be quickly forgotten.

Illegal short-term rentals flood N.O. market ahead of Super Bowl | wwltv.com New Orleans

Illegal short-term rentals flood N.O. market ahead of Super Bowl | wwltv.com New Orleans
"With Super Bowl 2013 just weeks away, acquaintances from out of town are asking the Uptown resident if he will be renting out his place."The houses in our neighborhood have been going for wild amounts of money, up to $20,000 for the weekend," said Blaine, who knows short-term rentals are illegal in the city."
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Interesting property rights issue...

The 40,000 pound battle of the wheelie bins: Homeowner slapped with massive legal bill after row with neighbour ends up in court | Mail Online

The 40,000 pound battle of the wheelie bins: Homeowner slapped with massive legal bill after row with neighbour ends up in court | Mail Online

"When Liaquat Ali’s next door neighbour complained that his wheelie bin was blocking the narrow alleyway between their homes, he agreed to move it.But its new position at a wider point of the shared access route prompted a solicitor’s letter stating it was still causing problems. The dispute developed into a bitter feud between Mr Ali, 47, and neighbour Iqbal Suleman, which ended in a court ruling that neither homeowner could keep a bin there. But they still ‘refuse’ to see eye-to-eye after Mr Ali was ordered to pay both of their legal bills, totalling almost £40,000."

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It is amazing to see how many neighbor disputes over minor issues end up costing people a fortune.

‘Disciplinary fees’ show the trouble with charter schools and privatization — MSNBC

‘Disciplinary fees’ show the trouble with charter schools and privatization — MSNBC:
"Chicago’s Noble Network of Charter Schools is making some cash on the side by charging “disciplinary fees” to unruly students. The parents of one teenager, writes Traci Lee, had to pay close to $2,000 in fines for infractions including “an unkempt appearance and not making eye contact.”
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Another example of using contracts and privatization to soak people for acts that would be OK except for private tyranny.

Corporate personhood advances – in carpool lane - Political Blotter - Politics in the Bay Area and beyond

Corporate personhood advances – in carpool lane - Political Blotter - Politics in the Bay Area and beyond: "Corporate personhood takes a new leap forward Monday as a Marin County motorist challenges his traffic ticket by arguing it was OK to drive in the carpool lane because his corporation was with him.

Jonathan Frieman, a local activist and nonprofit consultant, was ticketed Oct. 2 for driving in the carpool lane during restricted hours; the officer apparently wasn’t impressed when Frieman showed him his incorporation papers. A traffic court hearing is scheduled for Monday afternoon.

The fine for such a violation is $478, but Frieman, 59, of San Rafael, says that if the court rules against him Monday, he’s prepared to appeal the case all the way to the California Supreme Court in an effort to expose the impracticality of corporate personhood."
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Great argument. Just cite Citizens United v. FEC

HOAs in the Media: 5 Scandals affecting community associations in 2012

HOAs in the Media: 5 Scandals affecting community associations in 2012
Interesting piece that finds five big "scandals" relating to HOAs:
1.  George Zimmerman and the Trayvon Martin shooting
2.  Embezzlement and fraud
3.  Erroneously blaming the actions of a historic district on HOAs (this isn't a scandal--let's not get hypersensitive)
4.  Banks not paying assessments on foreclosed properties
5.  Citizens' Property Insurance in Florida

Think tank to study privatizing most Postal Service operations - The Washington Post

Think tank to study privatizing most Postal Service operations - The Washington Post

"As members of Congress pledged Thursday to revive legislation to save the financially ailing U.S. Postal Service, a Washington think tank announced it will conduct an independent study of how the quasi-government agency could cede much of its operation to private companies. The review by the nonprofit National Academy of Public Administration will analyze the benefits of restoring the agency’s financial health by using a “hybrid” model, which would farm out to the private sector postal operations other than the last delivery mile. A letter carrier would still drive or walk that last part, dropping letters and packages in mailboxes."
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So the easy part would be privatized, and the hard part would be left to the the quasi-public Postal Service. Sounds like the usual cream-skimming that characterizes many privatization arrangements.

Neighborhood dispute in Sarasota turns 'colorful' - My Suncoast: Local News

Neighborhood dispute in Sarasota turns 'colorful' - My Suncoast: Local News

Essex says the pigs must go | Burlington Free Press | burlingtonfreepress.com

Essex says the pigs must go | Burlington Free Press | burlingtonfreepress.com

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No, Essex is not an HOA.  And we're not talking about just one pet pig but two dozen oinkers.

Python purge: Florida contest turns public loose in Everglades | Fox News

Python purge: Florida contest turns public loose in Everglades | Fox News

Privatization in action.  Pay $50, take a 30 minute course, and head off into the Everglades to kill Burmese Pythons. What could possibly go wrong?

"The Sunshine State is hosting a month-long “Python Challenge" beginning Jan.12 with cash prizes of up to $1,500 for the biggest snakes caught. Wildlife officials urge caution, but beyond the online course and the fee, there are no other requirements to hunt down the Burmese pythons, which can reach nearly 18 feet in length and have devastated much of the southern Florida ecosystem...The commission’s website includes tips on how to identify Burmese pythons -- and how to kill them. Recommended methods for dispatching the animals include hacking off their heads with a machete or shooting them with a gun."

Reagans' 'Home of the Future' for sale for $5 million - Washington Times

Reagans' 'Home of the Future' for sale for $5 million - Washington Times:
In 1956, Ronald and Nancy Reagan helped design their onetime residence: a 4,764-square-foot, four-bedroom, four-bath ranch house in the tony Pacific Palisades neighborhood in west Los Angeles — now up for for sale.

It is, in real-estate parlance, "midcentury modern." There are glass-walled rooms, fabulous views, an indoor courtyard, vaulted ceilings, streamlined cabinets, granite walls, den with wet bar, all manner of electric gadgetry, an octagonal swimming pool and sprawling open spaces for entertaining.
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That's where he got The Call from Jimmy Carter conceding the 1980 presidential election. Carter famously conceded while the polls were still open in ten western states, costing a lot of Democrats their jobs.

Raleigh woman, HOA in stare-down over backyard staircase :: WRAL.com

Raleigh woman, HOA in stare-down over backyard staircase :: WRAL.com: The Stowecroft Owners Association Inc. sent Daniel letter after letter telling her to tear the staircase down. She refused, saying she spent thousands of dollars on it.

"They say they're going to fine me $100 every day, and if I don't pay, they're going to foreclose on my home," she said recently. "When they say 'foreclosure,' I was so sad. These people are going to foreclose on my home just for building some steps."

The Death of the American Shopping Mall - Jobs & Economy - The Atlantic Cities

The Death of the American Shopping Mall - Jobs & Economy - The Atlantic Cities:
"I believe we’re seeing clear signs that the e-commerce revolution is seriously impacting commercial real estate. Online retailers are relentlessly gaining share in many retail categories, and offline players are fighting for progressively smaller pieces of the retail pie. A number of physical retailers have already succumbed to online competition including Circuit City, Borders, CompUSA, Tower Records and Blockbuster, and many others are showing signs of serious economic distress. These mall and shopping center stalwarts are closing stores by the thousands, and there are few large physical chains opening stores to take their place. Yet the quantity of commercial real estate targeting retail continues to grow, albeit slowly. Rapidly declining demand for real estate amid growing supply is a recipe for financial disaster."
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Borders wiped out independent book stores, then got wiped out by Amazon. Shopping malls wiped out Main Street and now the malls are in the crosshairs of e-commerce.

Brian Collister’s Blog: Ousted HOA president demands millions | WOAI: San Antonio News

Brian Collister’s Blog: Ousted HOA president demands millions | WOAI: San Antonio News
She's back. And you have to hand it to Lisa Pfeiffer, if nothing else, she is persistent. The former president of the Ventura Homeowners association and other former board members have filed a claim against the HOA's insurance for more than $4,000,000 dollars. Pfeiffer was forced to resign last November after I reported she had closed all board meetings, spent more than $100,000 to sue several homeowners and then rigged her own re-election. In the insurance claim Pfeiffer and her board cronies claim they were discirminated against, harassed and unfairly thrown out of office.
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Wow. The video is quite a treat.

Oxford graduate quit mainstream society to live a hobbit-style existence in mud hut in the Welsh hills | Mail Online

Oxford graduate quit mainstream society to live a hobbit-style existence in mud hut in the Welsh hills | Mail Online

"Her daily chores involve tending to her vegetable plot and collecting fruit, looking after her three goats, seven chickens and two horses and chopping firewood. She gets her drinking water from a nearby stream and only rarely ventures to the shops for treats like rice and chocolate."

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Nice digs.

Sun City COA officials want laws amended to protect residents

Sun City COA officials want laws amended to protect residents
The board wants legislative action to protect people against excessive fees charged by management companies. This is a reaction to the federal lawsuit filed by J. Roger Wood that alleges there is a widespread practice of charging excessive fees for routine services that should be free or much less expensive.

In Pictures: the Year's 13 Most Gloriously Hideous Listings - Year in Curbed 2012 - Curbed National

In Pictures: the Year's 13 Most Gloriously Hideous Listings - Year in Curbed 2012 - Curbed National
The year in bad taste...

URI leader defends prof's NRA remark as protected speech | First Amendment Center – news, commentary, analysis on free speech, press, religion, assembly, petition

URI leader defends prof's NRA remark as protected speech | First Amendment Center – news, commentary, analysis on free speech, press, religion, assembly, petition:
The president of the University of Rhode Island has issued a statement supporting the right of a professor to express his views after he called for the National Rifle Association CEO’s “head on a stick.”
President David Dooley’s comments on Dec. 23 came after a statement last week in which Dooley distanced the university from a posting on Twitter by history professor Erik Loomis. Loomis wrote the post on Dec. 14, the day 20 children and six adults were killed by a gunman using a semi-automatic weapon inside a Newtown, Conn., elementary school.
“I was heartbroken in the first 20 mass murders. Now I want Wayne LaPierre’s head on a stick,” Loomis wrote. LaPierre is the chief executive of the NRA, the nation’s largest gun-rights lobby.
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This professor doesn't have tenure. Gun nuts tried to get him fired after he made the "head on a stick" comment on Twitter.  As with the Michael Mann lawsuit against National Review Online (see below), this situation raises some interesting issues about how freedom of expression and academic freedom operate with highly-charged political issues that play out across the internet.  The editorial function is either absent or involves less time for deliberation, so things are often "published" that in years past might have been edited out.  And now instead of a  daily news cycle, we have instant reverberations across social media platforms.

Michael Mann v. National Review Online

his will be an interesting lawsuit to watch. Penn State climate change scientist and Nobel Laureate Michael Mann is suing National Review Online, the Competitive Enterprise Institute, and right wing "journalists" Marc Steyn and Rand Simberg for defamation. They accused him of academic fraud for his work on climate change and basically compared him to Penn State child molester Jerry Sandusky. The price of climate change denial just went up. Mann is represented by Cozen O'Connor. It isn't fun to be sued by those folks. NRO is already doing online begging for money.

And it is worth noting that internet posts accusing other people of crime, fraud, and other moral failings are risky propositions these days. 

Florida homeowners foreclosing on banks - Dec. 26, 2012

Florida homeowners foreclosing on banks - Dec. 26, 2012:
  "Hundreds of homeowners and condo associations are foreclosing on banks that have failed to pay dues and other expenses on the properties they've repossessed."
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Banks have this unfortunate habit of foreclosing on a condo or HOA unit and not paying the monthly assessments.  Why should they be treated differently than any other delinquent owner?

Clay Twp. basin topic of Thursday meeting - News

Clay Twp. basin topic of Thursday meeting - News: At the meeting, the letter states, a homeowners' association will be established and members elected. The association will then take over care and maintenance of the stormwater basin.

That doesn't sit well with David Martin and some of his neighbors.

"This really should go to Clay Township, and they should be responsible," said Martin, whose Foggy Bottom Road home is a stone's throw from the basin. "We pay them through our taxes to take care of property like this."

Usually.

But in the case of Wildflower Pond, buyers purchasing houses in the development signed an agreement that a homeowners' association would be formed.
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Welcome to Privatopia, where you render taxes to both public and private governments.  And don't ask the former to bear the cost of maintaining retention basins and repairing deteriorating thoroughfares and sinkholes.  After all, you agreed that's not their responsibility, didn't you?

Man's rough month includes homeowners association fight | Local News - KMBC Home

Man's rough month includes homeowners association fight | Local News - KMBC Home: KANSAS CITY, Mo. —Just days before Christmas and days after the death of his granddaughter, a Johnson County man had his bank account seized by his homeowners association for being behind on his dues.

We're broke," said Sam Marsala. "We're terribly in the hole. That's all I can say."

According to court records, Marsala's bank account was garnished five days ago. He said he thinks he owes his homes association about $4,300 in back dues, money it uses to maintain the swimming pool, landscaping and trash pickup.

"I'm not going to deny that I owe them some money," he said.

Marsala said he's an electrical engineer, but his business in the solar industry hasn't been very good for several years. He's also taking care of his granddaughter, Fiona, who was born two years ago with a rare, terminal form of epilepsy.
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So much for the quaint notion that HOA private government is less impersonal and bureaucratic and fosters community. HOAs want their money just as much as the county tax assessor --- regardless of whether it's Christmas or the Fourth of July.

Summit Combined Housing Authority to help with special assessments in 2013 | SummitDaily.com

Summit Combined Housing Authority to help with special assessments in 2013 | SummitDaily.com: The special assessment program was created from the remains of a down payment assistance loan program, which is being discontinued because many lenders would not approve the funds.

The money from that program has been rolled over to create the special assessment loan program.
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Now loans will be offered to defer capital expenses in Privatopia.

Turf war: Homeowners called before their association’s board for installing an artificial lawn

Turf war: Homeowners called before their association’s board for installing an artificial lawn: The couple is only saving around $250 per year in watering costs, because they also have shrubs, flowers, rose bushes and trees in the middle of their lawn, those landscape features still require watering, Dawn said.

But now, the DeVine-Pelt couple said they have been called before their HOA’s board on Jan. 8 to discuss the installation of the lawn. And, it’s possible they could be ordered to remove the lawn if the board does not give post-installation approval, she said.

“I thought that Santa Clarita was water-wise friendly,” Dawn said.
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Maybe it is. But thanks to policies favoring the establishment of another (private) layer of local government, property owners must contend with another regulatory regime.

Couple plans to fight fines, keep Christmas decorations up | Westmoreland Co. News - WTAE Home

Couple plans to fight fines, keep Christmas decorations up | Westmoreland Co. News - WTAE Home: MURRYSVILLE, Pa. —The Rehaks’ home at Georgetown Commons in Murrysville is decorated with holiday cheer, but some in the neighborhood are saying, “No, no, no” instead of “Ho, ho, ho.”

“I was raised with a family that always decorated and you looked forward to the holidays to drive up and see the lights,” said Eric Rehak.

“I don't see anything wrong with decorating. It makes me happy. It makes the neighbors happy. Kids come by,” said Mary Rehak.

The property manager in the development changed the rules for Christmas displays, allowing residents to use only white lights.

Multicolored lights and more than one stand-alone figure are prohibited.
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Happy holidays from Privatopia, and may all your Christmas lights be white.  Film at 10 on WTAE, Pittsburgh.

CDC: Secondhand smoke from neighbors dangerous

CDC: Secondhand smoke from neighbors dangerous:
"According to a new report released by the Centers for Disease Control and Prevention (CDC), even if you're not a smoker, living in a multi-unit residence could put you at risk for cigarette smoke exposure."
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This is becoming an increasing source of conflict among people living in condominiums buildings. If there are enough complaints, condo boards and even city councils may ban smoking in multi-family residences. One example: San Rafael, California, where smoking in apartments and condos is banned.

http://articles.nydailynews.com/2012-10-16/news/34505361_1_secondhand-smoke-san-rafael-ban

U.S. states inch closer to pre-recession prosperity - Yahoo! News

U.S. states inch closer to pre-recession prosperity - Yahoo! News:
WASHINGTON (Reuters) - U.S. states are coming close to the end of a three-year trek back to the financial prosperity they enjoyed before the recession, according to a survey released on Friday that found the recovery is slow and uneven.
The National Association of State Budget Officers and National Governors Association found that total state spending will likely rise 2.2 percent this fiscal year from last, while general fund revenues grow 3.9 percent to $692.8 billion.
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More good news.

Reston’s Shadowood condominiums make new Va. case law, can’t impose fees on rule violators - The State of NoVa - The Washington Post

Reston’s Shadowood condominiums make new Va. case law, can’t impose fees on rule violators - The State of NoVa - The Washington Post:
"In Reston, there is a condominium complex called Shadowood that has written itself into Virginia history. For years, the Shadowood Condominium Association imposed fees for things like calling the management office or having the wrong color blinds. It towed tenants’ cars for unpaid fees — on the day before Thanksgiving. It turned off the heat or air conditioning to apartments of owners who were in arrears or in violation of its many rules.

"Last year, a Fairfax County judge permanently enjoined Shadowood from doing any of that stuff. The association appealed to the state Supreme Court, using its own members/victims’ money to pay its lawyers. This summer they lost there too, enshrining Shadowood in Virginia law under the concept that you can’t make up rules and impose fees if they are not in the development’s original master deed. That ruling has earth-shaking consequences for thousands of condo associations across the state, real estate lawyers say."
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This is a long and detailed blog post that tells the horrifying story of a Reston condo association with some major governance problems.  It is a good read for the people who keep saying that association governance is no worse than municipal governance. You have to consider the lack of oversight and institutional support for private governments. Thanks to Shu Bartholomew for the link.

NAHB: Apartment and Condominium Market Remains Steady in Third Quarter

NAHB: Apartment and Condominium Market Remains Steady in Third Quarter:
December 6, 2012 - The Multifamily Production Index (MPI), released by the National Association of Home Builders (NAHB) today, remained steady with an index level of 52. It is the third straight quarter with a reading over 50.

The MPI, which measures builder and developer sentiment about current conditions in the apartment and condominium market on a scale of 0 to 100, was essentially unchanged in the third quarter, only dropping two points from 54 in the second quarter.
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There are positive signs in some places. Here in the Chicago area things are still stalled. Some blame that on the slow pace of foreclosure cases, but I think a number of factors are involved.