Spectacular frozen waterfall created in China by resident, 58, who left tap on all winter | Mail Online

Spectacular frozen waterfall created in China by resident, 58, who left tap on all winter | Mail Online

He was the only resident left in the building and he wanted to make sure his pipes didn't freeze. And the result is quite spectacular:


So in order to keep the temperature of the pipes above freezing he simply switched on the tap - and then diverted the warm water to flow down the side of the building.
He said: ‘The water running into the pipe is from underground where it is above freezing and that is stopping the water pipes in my house from freezing. If that had happened I really would have had to move out. They want me to move.
'But what they were offering was not enough for me to get another place so I'm refusing to leave. I don't have anywhere to go anyway.’

Employee used condo association credit card for jewelry - Park Ridge Herald-Advocate

Employee used condo association credit card for jewelry - Park Ridge Herald-Advocate

This is the Chicago area. Another condo association employee using the association as an ATM. Just an isolated instance, right? The story is firewalled, but here's the teaser.


MAINE TOWNSHIP — A northwest suburban woman who worked as the office manager of a condominium association used the company’s credit card to buy jewelry and luxury purses for herself, according to police. Barbara Duelfer, 51, of Des Plaines, was charged Saturday with two counts of theft over $500, two counts of forgery and two counts of unlawful use of credit cards with intent to defraud, according to a statement from the Cook County Sheriff’s police. All the charges are felonies.

Bill Text: AZ SB1278 | 2013 | Fifty-first Legislature 1st Regular | Engrossed | LegiScan

Bill Text: AZ SB1278 | 2013 | Fifty-first Legislature 1st Regular | Engrossed | LegiScan

This is now the law in the State of Arizona. It has been signed by the Governor. HOAs may no longer act like they own and govern the public streets.  The idea that such a law is necessary--that HOAs need to be told this--should be unthinkable, but HOAs function as de facto local governments in many states, free from meaningful regulation.

Be it enacted by the Legislature of the State of Arizona:
Section 1.  Title 33, chapter 16, article 1, Arizona Revised Statutes, is amended by adding section 33-1818, to read:
33-1818.  Community authority over public roadways; applicability
A.  NOTWITHSTANDING ANY PROVISION IN THE COMMUNITY DOCUMENTS, AFTER THE PERIOD OF DECLARANT CONTROL, AN ASSOCIATION HAS NO AUTHORITY OVER AND SHALL NOT REGULATE ANY ROADWAY FOR WHICH THE OWNERSHIP HAS BEEN DEDICATED TO OR IS OTHERWISE HELD BY A GOVERNMENTAL ENTITY.
B.  THIS SECTION APPLIES ONLY TO THOSE PLANNED COMMUNITIES FOR WHICH THE DECLARATION IS RECORDED AFTER DECEMBER 31, 2014.

L.A., other hot housing markets are getting frothy, report says - latimes.com

L.A., other hot housing markets are getting frothy, report says - latimes.com: "Everybody I know is trying to do flips right now. It's like the day trading of the 1990s," Nordine said. "We went straight from Armageddon to speculation; there was nothing in between this time."

Still, Nordine is advising clients to buy now if they can, citing low interest rates and low risk of another foreclosure crisis.

"That is how the American economy works now," he said. "It seems as if we just go from one bubble to the next."
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The roller coaster is climbing to the clouds again in some metro areas such as DC and LA.  And when the housing market gets bubbly, it can bode ill for receipts in Privatopia.  HOAs have much smaller assessment bases than municipalities and counties and consequently less ability to absorb housing market volatility and the inevitable bubble bursts and painful hiccups in assessment cash flow.

HOA Accountability Bill Stirs Debate at Capitol | The Texas Tribune

HOA Accountability Bill Stirs Debate at Capitol | The Texas Tribune:
"A bill aimed at making nonprofit homeowners associations more financially accountable and transparent pitted homeowner activists against people representing for-profit HOA contractors on Tuesday. House Bill 3803, by state Rep. Ruth Jones McClendon, D-San Antonio, would require homeowners associations, which have government-like powers to levy assessments and foreclose on homes, to better safeguard the money they collect for the common good of the neighborhood. And it would for the first time introduce state oversight of HOAs — an elusive goal of Texas homeowner activist groups. The legislation would allow the attorney general to investigate breaches of fiduciary responsibility by board members and levy penalties of up to $20,000 per violation. That would go up to $250,000 if the violation was intended to harm an elderly Texan."
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Thanks to a kind correspondent in Texas who sent me the link to this story. It seems that money has become the root of many HOA and condo association problems, something that Tyler Berding has been saying for years now.  In addition to the inadequate reserves problem that Tyler has written about, there are all the conflicts over assessment collection, attorney fee-shifting and excessive fees, questionable charges by management companies, embezzlement, and people taking over associations to milk them.  During the real estate boom the slack was taken up by rising property values that made people feel flush with home equity and made sales easy.  These days, money is tight, property values are stagnant, home equity is a fond memory for many people, and everybody is more easily drawn into conflict.

Dean Baker: Obama Accepts the Agenda of Misguided Washington Elites | Debate Club | US News Opinion

Obama Accepts the Agenda of Misguided Washington Elites | Debate Club | US News Opinion: "Unfortunately, rather than deal with the reality – that we need deficits to sustain demand in a context where the private sector will not do it – the politicians in Washington have gotten hysterical. This is like complaining about our use of water when the school is on fire with the kids still inside."
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The obsession with deficit reduction and austerity budgeting will probably kill the feeble economic growth we are now experiencing, just like it has done in every European country that tried it. That will cause a lot of suffering, but in Washington these days they don't seem to know or care much about the real situation that ordinary people face. That goes for both parties in Congress and the Obama administration.

Banks get bailouts, commit foreclosure fraud and even major crimes, and get slaps on the wrist.  Ordinary people lose their wealth and their jobs and face foreclosure. Now a Democratic president is volunteering to cut Social Security in order to look sufficiently credible to tax-phobic rich people, whose incomes and wealth have grown spectacularly over the last three decades.  Cities go begging to private investors for money to rebuild crumbling infrastructure. Teachers are being laid off and students are giving up on going to college because it is too expensive. Climate change is so far advanced that we need policies aimed at adapting to it, because at this point it can't be reversed--but instead we have congressional committee chairs who think it is a socialist hoax.

And in Washington, the big issue is deficit reduction?  Quite a political system we have here, isn't it?

Broke homeowners association halts trash service in Aldine Village neighborhood | abc13.com

Broke homeowners association halts trash service in Aldine Village neighborhood | abc13.com
As Icy deLight points out in a comment (thanks for the link to this 2008 story) to the post below, there is nothing unusual about HOAs and condo associations having their utilities cut off for non-payment. That makes the place uninhabitable, the authorities take steps to make that official, and eviction of the owners is the next step. As Fred Pilot notes in his comment on the post, the attorney who says this is an unusual thing doesn't know what he's talking about.  The unusual thing is for a local government to get busy and address the problem systematically instead of waiting for the "free market" to solve it. The City of Chicago is the only municipality I know of that has set up a serious program to turn failed condo buildings into apartments. In this city alone, "To date, about 150 Chicago condo buildings, from six-flats to a 36-unit building, are somewhere in the process of being converted into apartment buildings. "  So don't tell me the problem is uncommon.

Homeowners Lose Their Water, Forced To Move | WREG.com

Homeowners Lose Their Water, Forced To Move | WREG.com: Attorneys say because this is such a unique situation even the judge isn’t even sure yet how he’ll handle the problem.
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Wrong.  The taps have been turned off before in attached Privatopia.  When the water gives out as in this townhome HOA, Tyler Berding's stage four death spiral accelerates exponentially.  Film at 10 on WREG, Memphis.

State Lawmakers Try To Rein In Homeowners Associations � CBS Denver

State Lawmakers Try To Rein In Homeowners Associations � CBS Denver: “Excesses fees, fines, add-ons, charging $100 to issue a letter to a homeowner indicating that their delinquent,” Rincevich said. “If you’re delinquent there should be a penalty, but too often it’s an execution, not a penalty.”

The bill passed out of committee and is headed to the full House.

Another bill that would better track HOAs, their number, how they resolve complaints, conduct elections and determine fees, also passed out of committee Tuesday.

In all there are four bills dealing with HOAs now making their way through the legislature.
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It's legislative season and once again time for another round of HOA reform bills.
 

The Gender Wage Gap Differs by Occupation | Center for American Progress

The Gender Wage Gap Differs by Occupation | Center for American Progress
...and "Property, real estate, and community managers" leads the list for worst gender gap, with women making 60.6% of what men make doing the very same job.  And the occupation is 57.4% female.  Sounds like somebody has some 'splainin' to do. Over to you, Community Associations Institute public relations staff. Maybe they should hire Zogby to do a survey of female managers and see if they like this situation.

USDOJ: Service Members to Receive $39 Million for Violations of the Servicemembers Civil Relief Act

USDOJ: Service Members to Receive $39 Million for Violations of the Servicemembers Civil Relief Act
"The Justice Department announced today that under its 2011 settlements with BAC Home Loans Servicing LP, a subsidiary of Bank of America Corporation, and Saxon Mortgage Servicing Inc., a subsidiary of Morgan Stanley, 316 service members whose homes were unlawfully foreclosed upon between 2006 and 2010 are due to receive over $39 million in monetary relief for alleged violations of the Servicemembers Civil Relief Act (SCRA)."
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The foreclosure mill just grinds along, using the courts to steamroll over middle class home owners who believed all that American Dream stuff about putting your wealth into real estate. Here we hundreds of unlawful foreclosures on members of the US military. It's good that something was done about it.  But to call this the tip of the illegal foreclosure iceberg is gross understatement. 

As cities lay off police, frustrated neighborhoods turn to private cops - CSMonitor.com

As cities lay off police, frustrated neighborhoods turn to private cops - CSMonitor.com:
Long known for patrolling shopping malls and gated communities, private security firms are beginning to spread into city streets. While private security has long been contracted by homeowners associations and commercial districts, the trend of groups of neighbors pooling money to contract private security for their streets is something new. Besides Oakland, neighborhoods in Atlanta and Detroit – both cities with high rates of crime – have hired firms to patrol their neighborhoods, says Steve Amitay, executive director of the National Association of Security Contractor. “It’s happening everywhere,” Mr. Amitay says. “Municipal governments and cities are really getting strapped in terms of their resources, and when a police department cuts 100 officers obviously they are going to respond to less crimes.”
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So affluent neighborhoods are starting to do what businesses have been doing since the 1970s by forming Business Improvement Districts (BIDS) and contracting for a higher level of police (and other services) than the municipality can provide.  And note this:  "Meanwhile, the private security industry is projected to grow by about 19 percent – from 1 million to 1.2 million guards – between 2010 and 2020, according to the Bureau of Labor Statistics. Most of that growth will come because private firms are doing jobs once held by law enforcement, according to the bureau."

Mandatory sterilization for pit bulls? Page 1 of 2 | UTSanDiego.com

Mandatory sterilization for pit bulls? Page 1 of 2 | UTSanDiego.com:
In the wake of recent brutal dog attacks, the Riverside County Department of Animal Services is proposing to mandate that owners of all pit bull purebreds and mixes in unincorporated communities sterilize the animals.
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Good idea. Thanks to Fred Pilot for the link.

Trayvon Martin wrongful death suit agains HOA settled

Trayvon Martin wrongful death claim more than $1 million - OrlandoSentinel.com:
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It appears that the HOA's insurer decided not to further dispute the coverage issue. As I understand the situation, Zimmerman was a volunteer, but the HOA more or less advised people to take their security concerns to him. The policy had a $1 million limit, and the story says the HOA paid at least that. Unfortunately there is a confidentiality provision so ascertaining the exact amount is impossible at this point.  In any event, it will be interesting to see if HOA insurers take steps to distance themselves from this sort of liability.

BIDs the solution for teen mobs?

Chicago, youth mobs, Gold Coast - chicagotribune.com:
"Ald. Brendan Reilly, 42nd, has a much better idea. He's introduced an ordinance that could put off-duty cops to work in commercial districts — in uniform and under the direction of the Police Department — paid for by local merchants through local chambers of commerce, business improvement districts or special taxing districts. That makes more sense than an earlier plan to expand police powers to private security guards.

Reilly says his proposal is a stopgap, not a solution. Chicago needs hundreds more full-time cops that it can't afford. In the meantime, his proposal would give businesses the option of hiring sworn officers to supplement the police presence in their neighborhoods. The plan isn't specific to downtown, he says. But that seems like an obvious place to start, and soon. Summer's coming."
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So--protection in the business districts through hiring the cops as security guards?

Stockton's bankruptcy approved - SFGate

Stockton's bankruptcy approved - SFGate:
"A federal judge on Monday granted Stockton's reluctant, nearly year-old request to become the largest city in U.S. history to go bankrupt, but not before lambasting bond creditors for stonewalling negotiations despite what he called "good-faith" efforts by the city to find a solution for its financial problems...Buoyed by tax income from the housing boom of the early 2000s, Stockton approved "overly generous" employment packages and ambitious projects, including a waterfront baseball stadium, Klein said. Then, he said, "what we now call the Great Recession" and foreclosures hit the city like a bomb. By 2011, unemployment reached 22 percent, property values plunged by more than half, and the city was in a "painful" hole, the judge said."

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The way I see it, many if not most state and local governments, special districts, and homeowner and condo associations are all facing major financial challenges. There are many reasons for this, but the most basic problem is simple: all of them have their hands in the pockets of the American middle class, and there is a finite and dwindling amount of money there.

Jim Hightower: Corporate Kangaroo Courts Supplant Our Seventh Amendment Rights

Corporate Kangaroo Courts Supplant Our Seventh Amendment Rights:

Jim Hightower on mandatory arbitration agreements inserted in consumer contracts:

"All you really need to know about today's process is that it's the product of years of conceptual monkey-wrenching by corporate lobbyists, Congress, the Supreme Court and hired-gun lobbying firms looking to milk the system for steady profits. First and foremost, these fixers have turned a voluntary process into the exact opposite: mandatory."
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American judges are indoctrinated to believe in the sanctity of "contract" even when there was no negotiation and the party that had all the power wrote an unchangeable "take it or leave it" agreement that contained an arbitration clause, and imposed it on the consumer.  The Seventh Amendment guarantees the right to jury trial in civil matters. May as well not have it, given the way contracts are being used to strip it away.

Housing market: Buyers frustrated over shortage of inventory - South Florida Sun-Sentinel.com

Housing market: Buyers frustrated over shortage of inventory - South Florida Sun-Sentinel.com:
"A few factors have contributed to the low inventory. New construction fell sharply during the housing bust, limiting the opportunities for resales now, said Walter Molony, a spokesman for the national Realtor group. When prices plunged, millions of homeowners lost equity, putting them "underwater" on their mortgages. Even though values are rebounding, many homeowners still can't sell without bringing thousands of dollars to the closing table. Meanwhile, a large contingent of homeowners who have equity are keeping their properties off the market, figuring they have weathered the downturn and now want to see prices keep rising before they consider selling."
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This has been going on for so long that it feels like the new normal.  Thanks to Fred Pilot for the link.

One way to address the S.B. 1062 fee shifting issue

S.B. 1062, currently in the Maryland State Senate (see two posts on it below), deals with the problem of attorney fee shifting in covenant enforcement cases where the fees are grossly disproportionate to what is at stake in the case.  Here is one way it could be amended, using the California approach. This is from California Civil Code Section 1354 b, c, d, and e, in the Davis-Stirling Common Interest Developments Act:

  (f) In any action specified in subdivision (a) to enforce the

governing documents, the prevailing party shall be awarded reasonable

attorney's fees and costs.  Upon motion by any party for attorney's

fees and costs to be awarded to the prevailing party in these

actions, the court, in determining the amount of the award, may

consider a party's refusal to participate in alternative dispute

resolution prior to the filing of the action.

So the court can adjust the amount of fees downward if the losing party refused to participate in ADR prior to filing of the action. Why not do the same thing with the problem addressed by S.B. 1062?--fees that are excessive not because they fail the test of the "lodestar method," (i.e., can't be justified on time and effort and ability grounds), but because the fees are ridiculous in view of how little was at stake. 

http://caselaw.lp.findlaw.com/cacodes/civ/1350-1376.html/

Just specify in S.B. 1062 what kinds of cases it applies to, which would be covenant enforcement actions involving nonmonetary violations; define nonmonetary violations;  say that this section is in addition to the factors that already apply under existing law and court rules;  and then add "the court, in determining the amount of the award, may consider the degree to which the amount of the attorney's fees is reasonable in relation to the amount in controversy or the nature of the nonmonetary violation."  Perhaps the language could be changed to read "the nature and seriousness" of the nonmonetary violation.

Couple fighting HOA over removal of pit bull that chased suspect

Couple fighting HOA over removal of pit bull that chased suspect: WINTER GARDEN --�
A Winter Garden couple is fighting their homeowners association's efforts to have them get rid of their pit bull after it chased a suspect out of their home. Chris Barrella’s homeowners association says the dog is aggressive and a danger to other people in the neighborhood. Barrella says his dog was protecting his family from a suspected kidnapper in an incident that sparked the HOA’s accusation.
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I'm not a pit bull fan. I think all of them should be sterilized tomorrow. But maybe this one deserves a little leniency? Thanks to Fred Pilot for the link.

Foreclosed 'Zombie' Homes Exceed 300,000 Properties: Study

Foreclosed 'Zombie' Homes Exceed 300,000 Properties: Study
"ORLANDO, Fla., March 28 (Reuters) - A national survey found 301,874 "zombie" properties dotting the U.S. landscape in which homeowners in foreclosure have moved out, leaving vacant property susceptible to vandalism and degradation. Florida tops the list of zombie properties with 90,556 vacant homes in foreclosure, according to a foreclosure inventory released on Thursday by RealtyTrac, a real estate information company in Irvine, California. Illinois and California ranked a distant second and third with 31,668 and 28,821 zombie properties respectively on the list...According to the Reuters special report, municipalities are left to deal with the mess when people move out after receiving a notice of a planned foreclosure sale that the bank then cancels. Some spend public funds on securing, cleaning and stabilizing houses that generate no tax revenue. Others let the houses rot."
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A lot of these homes are in associations, and in many cases the associations are zombies, too. But look who is left to clean up (or not) behind the wreckage created by the housing market:  municipalities. And they remain unprepared to do much of anything. 

Former U.S. Marine told his flagpole violates Hypoluxo code | www.palmbeachpost.com

Former U.S. Marine told his flagpole violates Hypoluxo code | www.palmbeachpost.com: And it’s not the first time Palm Beach County residents have been told their American flags may have to come down because of code violations. Schaffer joins a group that includes a former Marine from Jupiter, a North Palm Beach businesswoman, a car dealer magnate and even Donald Trump, all who’ve had their run-ins with code violations over their American flags.
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Now muni officials are instigating flag flaps that are widespread in Privatopia.

Security door fight swings in homeowner's favor - Houston Chronicle

Security door fight swings in homeowner's favor - Houston Chronicle: According to a letter from the HOA, the board of directors voted to allow any security door that was installed prior to July 1, 2010, the date AMI Houston assumed the association's management. (At least two other homeowners have installed burglar bars because of crime issues, HOA officials confirmed.)

"I appreciate the homeowners association and [developer and president] Mr. Michael Johnson for working with me. I am glad to see this matter is solved," said Babineaux, 57. "I just wanted them to leave me alone about my door."

The lesson here for homeowners and HOAs is that Texas law has a four-year statute of limitations on deed restrictions.
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I guess treating deed restrictions as giving rise to legal claims and subjecting them to a statute of limitations makes sense given the frequency of regime change in Privatopia.

What is S.B. 1062 about?

I testified at the Maryland State Senate hearing yesterday in support of S.B. 1062. The hearing was long and emotional at times, as unit owners told how they have been subjected to foreclosure actions by association lawyers seeking up to $70,000 in fees on top of fines in the hundreds of dollars.  The current draft of the bill was done in haste because of legislative scheduling issues, and it will be redrafted.  As written, it doesn't clearly explain what is intended.

Senator Muse is the sponsor.  The work to date has been done by attorney Larry Holzman, who represents Brian Hanrahan, a unit owner who has been through an incredible experience with his association and who testified at the hearing about his case.

Here it is in plain language, the way I understand it.

1.  Association governing documents usually contain fee-shifting provisions that allow the association to recover its attorney fees from unit owners if the association prevails in an action to enforce the governing documents.

2.  This would happen in two kinds of cases--either assessment collection, or enforcement of non-monetary provisions of the documents (pets, parking, architectural review, etc.)

3.  Existing statutes and rules in Maryland already authorize judges to do a "reasonableness" review of these claims, but only concerning the amount of the fees. In other words, judges already have the power to refuse to shift the association's fees to the owner, if the fees are excessive. This is what the court did in the recent case of Monmouth Meadows Homeowners Association, Inc., v. Tiffany Hamilton, 416 Md. 325 (2010).

4.  But what if the association lawyer is able to document that the amount of fees is reasonable, in the limited sense of satisfying the existing criteria--skill, hours billed, rate, and so forth--but the issue is whether the legal expenses are grossly disproportionate to the alleged offense?  For example, the association runs up $70,000 in fees over a $250 charge for a (bogus) parking violation  (as happened to Brian and Judith Hanrahan--Brian testified at the hearing; and see also Farran v. Olde Belhaven Townhome Association, where a political sign led to gazillions in fees).

5.  As I understand it, the point of S.B. 1062 is to give judges the power to deny or reduce attorney fees to association lawyers who manage to win a case that never should  have been brought in the first place.  The court would assess not just the reasonableness of the amount of the fee, but the reasonableness of the action itself, when you compare the incredible cost to the nonexistent or trivial alleged benefit.

6.  The focus of this bill is not assessment collection, but covenant enforcement cases.  The language in the bill about a rebuttable presumption of reasonableness is not (as I understand it) going to be in the next version (the Judicial Council opposed the bill because they think it tinkers with existing law on how courts review attorney fees, and this issue needs to be addressed). But the bill will still treat the two kinds of cases differently.   This is because associations need their assessment stream in order to remain solvent. If they have to hire lawyers to collect assessments, they should be able to recover their collection costs and fees, but judges need to scrutinize the amount of the fees to make sure the lawyers aren't churning and the costs and fees are reasonable.  Judges already have that power in Maryland (see Monmouth Meadows for the way they do that in Maryland).  [note: I realize that some people who read this blog want to wreck all associations financially, so they think association shouldn't be able to collect fees in court, but I think that position is irresponsible and morally objectionable and I won't argue it with you.] But associations don't need the money they get from fines. They don't become insolvent because somebody doesn't pay a $50 fine for painting their mailbox the wrong shade of beige.  And when a lawyer seizes on a case like this and runs up thousands of dollars in fees in the course of suing the owner, a judge should be able to say, "OK, you win on the paint job, but the association has to pay its own attorney."  Why?  Because fee shifting is an exception to the general rule that parties pay their own lawyers, and it should be allowed only when there is a real purpose to shifting the fee. Making lawyers wealthy isn't a good enough reason to shift the fees. As the court said in Monmouth Meadows, quoting the United States Supreme Court, “fee shifting statutes…are not intended as ‘a form of economic relief to improve the financial lot of attorneys[.]’”  [416 Md. 336]

7.  This would discourage associations from intimidating or persecuting unit owners, it would keep ridiculous cases that only enrich lawyers out of the courts, and it would force association boards to think for themselves and exercise some independent judgment instead of suing every time their lawyer tells them to, influenced by the promise that the association won't have to pay for it.

8.  Predictably, CAI showed up and opposed the bill. They send a non-lawyer from the Maryland legislative action committee who claimed that she didn't know about any abusive cases, boards are responsible, CAI wants to be involved in the conversation, and so forth. The usual fare. It was not an effective performance, but you can expect them to roll in the big guns (i.e., the lawyers who have gotten rich using fee-shifting provisions) if this bill goes forward.

So that's the general idea. I think this is a good bill that focuses attention on a problem that I have been writing about for decades.

About to testify in support of S.B. 1062

So here I am in Maryland, getting ready to testify before the Judicial Proceedings Committee of the Maryland State Senate in support of S.B. 1062, summarizes as follows:

"Prohibiting a governing body of a homeowners association or council of unit owners of a condominium from demanding, collecting, or seeking to recover attorney's fees from a lot owner or unit owner unless the amount of the attorney's fees is reasonable in relation to the amount in controversy or the nature of a specified violation; establishing that, in a specified action against a lot owner or unit owner, there is a specified rebuttable presumption that attorney's fees sought are reasonable; etc."

The bill is sponsored by Sen. C. Anthony Muse, whose district is in Prince George's County.

Bimini bay: arrested bimini bay developer taps HOA funds - OrlandoSentinel.com

Bimini bay: arrested bimini bay developer taps HOA funds - OrlandoSentinel.com: The developer of the half-built Bimini Bay resort in Davenport withdrew more than $16,000 from the homeowner association's accounts the same day he was arrested earlier this month and accused of stealing from homeowners' utility payments, according to association records.
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Privatopia sometimes resembles a company town -- the developer's.

15 Mid-Century Modern Dream Homes that will Kill Your Children | projectophile

15 Mid-Century Modern Dream Homes that will Kill Your Children | projectophile

"The clean lines, the geometric decorative elements, the seamless blending of indoor and outdoor space… I sure do love mid-century modern architecture. Do you know what I love more? My children. And that is why I will never live in my MCM dream home. Because mid-century modern architecture is designed to KILL YOUR CHILDREN. (Also, moderately clumsy or drunk adults)."
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HOA, homeowner at odds over security door - Houston Chronicle

HOA, homeowner at odds over security door - Houston Chronicle
Babineaux said he appealed to the homeowners association, which, at that time, told him to take whatever precautions he deemed necessary to protect his home. So, the METRO bus driver had wrought-iron security doors installed on the front and rear entrances of his house. The metal barrier facing the street also has a tinted background panel.

"When I found out they were breaking in and doing things, I hurried up and had these doors built," Babineaux said, adding that the job cost him about $1,200. "These two doors have saved me. I love these doors. I can sleep good at night."
But recently, a new regime at the HOA has told him to remove the fortification from the front of his home.
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Regime change has come to this corner of Privatopia.  And the new regime has a different take on the CC&Rs when it comes to this inmate's cell door.  

The House Across From Westboro Baptist Is Getting a Rainbow Pride Paint Job Right Now | TPM News

The House Across From Westboro Baptist Is Getting a Rainbow Pride Paint Job Right Now | TPM News
Ordinarily I don't think much of people who paint their houses so as to annoy the neighbors, but in this case I love it.

Haunting images of abandoned 'ghost' towns from across the world | Mail Online

Haunting images of abandoned 'ghost' towns from across the world | Mail Online
Amazing photos, and a good reminder of the impermanence of things. In 50 years, how many CIDs will be ghost towns? The construction quality of many new developments is so poor that in years past it would have been acceptable only for a movie set.

Boca Quay's HOA bans skateboards, scoooters, kids outraged over lack of places to play

Boca Quay's HOA bans skateboards, scoooters, kids outraged over lack of places to play: BOCA RATON, Fla. - Every single home in the Boca Quay gated community got a letter saying that skateboards, roller blades, bicycles, scooters, toys and ball playing are not permitted in roadways, walkways or common grounds.
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The grinch has struck again, and it isn't even Christmas.

It's complicated evicting delinquent owners - chicagotribune.com

It's complicated evicting delinquent owners - chicagotribune.com:
"Illinois is the only state that gives associations the remedy of temporary possession to satisfy judgments against owners who are in arrears. Associations in other states typically initiate foreclosure proceedings and are awarded permanent possession of the unit. "We have a more humane way of doing things," Fullett said. "It's also a faster, less-expensive procedure than a foreclosure."
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As Sean Connery said in The Untouchables, "It's the Chicago way."

Cerabino: Presidential politics have nothing on Kings Point... | www.palmbeachpost.com

Cerabino: Presidential politics have nothing on Kings Point... | www.palmbeachpost.com
Thanks to George Staropoli for the pointer to this article. Reading this, I find myself wondering why the press and especially the courts so uncritically accept the industry line that CIDs are democracies. There are so many irregularities (to put it mildly) in condo and HOA elections that I don't see how it can be assumed that the popular will prevails. And that is added to the culture of non-participation that prevails in most associations.

Municipal duties move to 'burbs as HOAs must step in

Municipal duties move to 'burbs as HOAs must step in

"It's the most dramatic privatization of local government services that we've ever seen," said Evan McKenzie, a political science professor at the University of Illinois at Chicago and author of Privatopia: Homeowner Associations and the Rise of Residential Private Government.

Transferring these responsibilities to homeowner associations places more of a financial burden on individual homeowners and drives up the overall cost of housing, McKenzie said.

The costly repairs of aging streets or retaining ponds can become too much for a small group of residents in the community, particularly as many HOAs continue to reel from the lost revenue created by foreclosures, he said.

"I just think as a short-term solution to the fiscal problems of cities, what they created potentially is a long-term problem," McKenzie said.

"At some point, my question is this: Is not the responsibility going to come back to the municipality? They'll have slums on their hands."

Attorney represents association board, not the homeowners - DailyHerald.com

Attorney represents association board, not the homeowners - DailyHerald.com
David Bendoff is absolutely right, of course.  But it is interesting to note the way some other industry lawyers play games with this somewhat confusing relationship when they are doing the PR routine.  When some of these industry attorneys (such as the one I was on the air with on KNPR the other day--see below) are talking to the media and extolling the virtues of HOAs and condo associations they often claim that the owners ARE the association.  He used almost those exact words.

But then we descend from the clouds into the real world of association affairs and the actual relationship between the lawyer, the association, and the owners, which David Bendoff accurately and honesty describes. When an owner tries to get information from the association lawyer about anything specific, the lawyer refuses. Why?  Because he or she represents the association, which is a corporation with a separate legal existence, and not the owners. Going a step further, as David Bendoff explains, in reality representing the association means representing the board of directors, because the association is just a fictitious legal entity. The directors are the real client.  This is just the nature of corporation organization, and it is important to understand.  That's why I wish the media would stop uncritically repeating all the warm and fuzzy community/town meeting propaganda. This is a business arrangement.

Computer theft puts HOA residents' personal info in unknown hands | www.wftv.com

Computer theft puts HOA residents' personal info in unknown hands | www.wftv.com: KISSIMMEE, Fla. —Kissimmee police said a thief now has the bank account information for thousands of people who belong to a homeowners' association.

A property management company for six communities in Osceola, Orange and Polk counties had its computer server stolen Monday, police said.
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The need for data security -- a big issue in other industries that retain personal information -- also applies in Privatopia as this incident illustrates.

California bill would ban smoking in multi-unit housing - Real Estate - The Sacramento Bee

California bill would ban smoking in multi-unit housing - Real Estate - The Sacramento Bee: Levine's bill would permit outdoor smoking near apartments or condos, but only in a clearly marked area that is at least 20 feet from any housing unit and 100 feet from a playground, school or pool.

Landlords, property managers, building owners or homeowners associations would select the outdoor smoking area. Condominium neighbors collaboratively would choose a site.

"Neighbors usually work together to figure those things out," Levine said.
------------
If you go 'em, smoke 'em.  Outside.

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."
-------------
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.
-------------
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.
-----------
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."
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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.