Thursday, March 09, 2017

Portland homeowners win reprieve from maintaining city's trees | OregonLive.com

Portland homeowners win reprieve from maintaining city's trees | OregonLive.com

"Portland Mayor Ted Wheeler plans to quash an effort by city bureaucrats to quietly expand homeowners' responsibilities to care for trees on city-owned land.The proposed new rule would have required Portland property owners to cut down dangerous trees on city property adjacent to their land, even if the trees were located far from the private property...The change would have, for instance, cost at least three Southwest Portland homeowners as much as $3,500 by making clear that they are responsible for cutting down trees more than 50 feet away and inaccessible from their property Current code requires property owners to take care of dying or dangerous trees on their own property, "any adjacent sidewalks, planting strips and trees fronting or upon such private property." The changes would have added "adjacent unimproved or partially-improved rights-of-way" to the places where private property owners are required to remove problem trees."
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I have always found it interesting that city governments impose on homeowners the responsibility to maintain public property. It is common to require them to shovel snow from sidewalks, for example. But dealing with dangerous trees is a much bigger responsibility. It is expensive and requires judgment. And extending that responsibility to adjacent areas is quite a step.

Lake Charleston homeowners ask HOA for security cameras in neighborhoods after attempted abductions - wptv.com

Lake Charleston homeowners ask HOA for security cameras in neighborhoods after attempted abductions - wptv.com

Now Harman says he and his wife are pushing for security cameras in the Lake Charleston Community.  "One camera for their AC unit, one camera for their clubhouse," said Harman naming the surveillance that exists at the community clubhouse. "Nothing for security wise for the community itself." 
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So before making a decision, the HOA is asking the Sheriff's office to do a survey to find out what other associations are doing. I find that a strange request. Are the public law enforcement officials supposed to serve as private security consultants for HOAs? 



Monday, March 06, 2017

HOA critics: Proposed Missouri legislation won’t protect homeowners | The Kansas City Star

HOA critics: Proposed Missouri legislation won’t protect homeowners | The Kansas City Star: "Missouri homeowners longing for more accountability in their homeowners associations and protection from overzealous HOA boards may not find the answers they want in legislation recently proposed in the state House and Senate.

While proponents say the measures will safeguard homeowners and ensure that they know what they’re getting into when buying a home in an HOA, some homeowner advocates say the proposals — one is called the Missouri Homeowners’ Bill of Rights — are so watered down that they instead protect the $85 billion HOA industry."

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Toward the bottom the article notes that there is pending legislation in a number of states now. So are we in the middle of a new wave of attempts at HOA/condo reform?  There is a certain predictability to this. The people who identify themselves as "homeowner advocates" are opposed to anything CAI is for, but they don't have a well-defined counter-agenda of their own. They are divided between abolitionists who want to destroy the entire institution of common interest housing and reformers who think it can be made to work better.  That's why the outcome of these struggles is are almost always either CAI-backed bills that pass, or nothing at all passes.




Why Cities Can't 'Manage Decline' - CityLab

Why Cities Can't 'Manage Decline' - CityLab: "Policy, in its simplest form, is just jargon for group desire, marshaled through influential people. Desire comes down to fear or hope, as Dutch philosopher Baruch Spinoza famously insisted. When fear is your dominant driver, the policy becomes one of scarcity and security. When hope is dominant, the policy is viewed through possibility and aspiration. The key, here, is while “serious” policy decisions are supposed to be “smart,” they are derived viscerally. No wonder so many gut decisions on things like urban renewal end poorly."

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So why, says Richey Piiparinen, should cities like Cleveland assume that they will continue to decline, when nobody knows what the future may hold for any city?

Wednesday, March 01, 2017

Man blew up his own house in Wales because he was depressed at being 50 | Metro News

Man blew up his own house in Wales because he was depressed at being 50 | Metro News:



Geez. What's he doing to do when he hits the big six-oh?

Construction Defects in Community Associations

Construction Defects in Community Associations:



CAI has a report out on proposed state laws to make it harder for HOAs and condo associations to sue developers for construction defects. They say that, "As of February 28, legislation has been introduced in Arizona, Colorado, Florida, Massachusetts, Maryland, Minnesota, New Jersey, Oregon, Texas, Utah and Washington." Developers and contractors have political influence and often can persuade lawmakers that CD litigation raises the price of housing. Really? If building correctly is too much of a burden, maybe they should find another livelihood. Because if they build it right in the first place, there shouldn't be a CD lawsuit--or at least, not a legitimate one. There have been some fraudulent CD cases, such as the ones filed in the Las Vegas HOA fraud ring led (or fronted, depending on who you believe) by contractor Leon Benzer. But most CD suits are legitimate, and often the owners have no real alternative but litigation because the damages may not be covered by insurance and they can't afford to pay millions to fix the defective construction out of their own pockets. So I think state legislatures should tread carefully here. If defects go unrepaired, there are adverse consequences for the owners and maybe the whole neighborhood.

Monday, February 27, 2017

Grant Co. leaders: Ark Encounter doesn't live up to economic promise

Grant Co. leaders: Ark Encounter doesn't live up to economic promise:

"The county is teetering on bankruptcy and is trying to balance the budget. Wood said they were to the point where jobs may have to be cut. He will propose a 2% payroll tax at next week’s fiscal court meeting. He blames prior fiscal courts for the budget crisis, not the Ark. But he said the Ark had not lived up to its promise. “I was one of those believers that once the Ark was here everything was going to come in. But it’s not done it. It’s not done it. I think the Ark’s done well and I’m glad for them on that. But it’s not done us good at all.”"
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So the county's ship didn't come in?

Friday, February 24, 2017

Frannie: Privatization Is A Pipe Dream - Fannie Mae (OTCMKTS:FNMA) | Seeking Alpha

Frannie: Privatization Is A Pipe Dream - Fannie Mae (OTCMKTS:FNMA) | Seeking Alpha: "Summary:   The prospects for GSE privatization have been significantly reduced due to setbacks in the courts.

The arguments in support of investing in the GSEs are weak, and these stocks have further downside from Mnuchin and the U.S Treasury.

While most of the downside is over, Fannie and Freddie are still compelling shorts."




Thursday, February 23, 2017

Dismal Results From Vouchers Surprise Researchers as DeVos Era Begins - NYTimes.com

Dismal Results From Vouchers Surprise Researchers as DeVos Era Begins - NYTimes.com: "But even as school choice is poised to go national, a wave of new research has emerged suggesting that private school vouchers may harm students who receive them. The results are startling — the worst in the history of the field, researchers say."

-----------

Privatization has been sold by ideologues as a utopian program of private alternatives that were supposedly always better than public sector service provision. But in one policy area after another, the results have not lived up to the hype. But the private service providers will continue to oversell their wares because they make a fortune.

Monday, February 20, 2017

Homeowners outraged that Millennium developers, HOA won't share building's rescue strategy - San Francisco Business Times

Homeowners outraged that Millennium developers, HOA won't share building's rescue strategy - San Francisco Business Times:

 "A strategy proposed by the developer and HOA of San Francisco's sinking, tilting Millennium Tower to fix the building is coming under fire this week from homeowners, who are frustrated that the group refuses to detail its repair strategy...Last August, it was revealed that the 58-story Millennium Tower has sunk more than a foot and is leaning two inches, and now faces a rash of lawsuits from both regulators and angry homeowners worried about their investment in the $350 million building.

Thus far, the San Francisco City Attorney has sued the developer, while two Millennium Tower homeowners have filed a civil claim against both the city and their neighboring Transbay Joint Powers Authority, and a separate group of 20 homeowners has sued Millennium Partners, San Francisco’s Department of Building Inspection, the City Attorney and the Transbay Joint Powers Authority for allegedly conspiring to withhold information about the building's structural issues."

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The situation is in mediation. The association says they are bound by the mediation agreement not to talk about the repair plans. That would be consistent with normal procedures for any mediation. But big HOA disputes tend to spawn multiple claims by various people that can make settlement difficult.




Friday, February 17, 2017

Mortgage delinquencies among some homeowners just spiked, spelling trouble

Mortgage delinquencies among some homeowners just spiked, spelling trouble:



"Federal Housing Administration mortgage delinquencies jumped in the fourth quarter for the first time since 2006, the Mortgage Bankers Association reported Wednesday. The FHA insures low down-payment loans and is a favorite among first-time homebuyers. The seasonally adjusted FHA delinquency rate increased to 9.02 percent in the fourth quarter from 8.3 percent in the third quarter, MBA data show. The jump, which followed the lowest delinquency rate since 1997, was driven by loans made since 2014 and early-stage delinquencies, those just 30 days past due."

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Well, that isn't good. Especially this part: "... the foreclosure activity increases in states such as Arizona, Colorado and Georgia are more heavily tied to loans originated since 2009 — after most of the risky lending fueling the last housing boom had stopped,"

Thursday, February 16, 2017

Appeals court dashes hopes for investors who bought foreclosed homes in Nevada | Las Vegas Review-Journal

Appeals court dashes hopes for investors who bought foreclosed homes in Nevada | Las Vegas Review-Journal:

See the post below.  This article explains that the real beneficiaries of the Nevada Supreme Court's decision regarding the superlien statute are investors who acquired an estimated 2,000-3,000 properties by just paying off the association's lien for unpaid assessments, fees, and costs. But the 9th Circuit left them in limbo when they declared the statute unconstitutional. Then the Nevada SC rode to the rescue again and said the statute is just fine. I'm curious as to what is going on now. Can the investors sell these properties with clear title, or is there still confusion or uncertainty about whether the purchases by these investors can be rescinded and the banks' first mortgages restored? Does anybody know?

The Super-Priority Saga Continues – Nevada Supreme Court Holds That NRS 116’s Notice Provisions Are Constitutional | Financial Services Perspectives

The Super-Priority Saga Continues – Nevada Supreme Court Holds That NRS 116’s Notice Provisions Are Constitutional | Financial Services Perspectives:



Yes, indeed. The saga continues.  To recap:

1.  In SFR Investments Pool v. US Bank, the Nevada Supreme Court ruled on 9/18/2104 that an HOA nonjudicial foreclosure on their "superlien" for unpaid assessments extinguishes a first mortgage. The bank said that they had been denied due process of law because they didn't have adequate notice of the NJF.

2.  But then on 8/15/2016,  the 9th Circuit Court of Appeals ruled in Bourne Valley Court Trust v. Wells Fargo Bank that this law violates the due process rights of the bank holding the first mortgage. Where is the state action that gives rise to a due process claim? It lies in the state legislature enacting the statute that gives the HOA the right to do this. What is the denial of DP? It relates to the adequacy of the notice to the first lienholder that the statute requires.

3.  But stop the music: The Nevada Supreme Court struck again. On 1/26/2017, they ruled in Saticoy Bay LLC v Wells Fargo bank that there is no state action, and thus no constitutional claim for deprivation of due process.



The Nevada Supreme Court and the federal 9th Circuit Court of Appeals have different rulings on the same statute. So, what does this mean? I think it probably means that the choice of courts makes all the difference. In Nevada state courts, the Nevada Supreme Court is the final authority. But if the case is in federal court, the 9th Circuit's ruling is the law.



In situations like this, the US Supreme Court has been known to grant certiorari in order to decide which interpretation should prevail.  Rule 10 of the USSC Rules provides that they are more likely to take a case if "(b) a state court of last resort has decided an important federal question in a way that conflicts with the decision of another state court of last resort or of a United States court of appeals," which is just the situation. But somebody has to present this issue to them in a real case, and I do not know if that is in the works or not.

And the statute in question was amended after the SFR case, so I defer to NV lawyers as to how big an issue this will be going forward. The language in the amendment requires more detailed notice, and includes this: "(II) If, not later than 5 days before the date of the sale, the holder of the first security interest on the unit satisfies the amount of the association’s lien that is prior to that first security interest pursuant to subsection 3 of NRS 116.3116 and, not later than 2 days before the date of the sale, a record of such satisfaction is recorded in the office of the recorder of the county in which the unit is located, the association may foreclose its lien by sale but the sale may not extinguish the first security interest as to the unit."  So now (if I am reading all this correctly) the bank gets more detailed notice and has a chance to pay off the delinquent assessments so their lien doesn't get extinguished.

Thursday, January 26, 2017

Survive the coming apocalypse inside a big pipe buried underground / Boing Boing

Survive the coming apocalypse inside a big pipe buried underground / Boing Boing

"Atlas Survival Shelters sells huge corrugated pipe shelters outfitted for living with air filtration systems, Co2 scrubbers, and power generators. A 10' x 20' shelter goes for $30-$40,000 and the "Hillside Retreat," a 10' x 51', runs as high as $109,000. Options include a big screen TV, electric fireplace, oak flooring, hatch camouflaged as a boulder, and many other fine amenities."

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As long as nobody figures out that the boulder is a hatch, you are on easy street.

Tuesday, January 24, 2017

In a community of million-dollar homes, a fight over a $500 mailbox ends in court - The Washington Post

In a community of million-dollar homes, a fight over a $500 mailbox ends in court - The Washington Post:



"The $35 wooden mailbox Keith Strong bought in 2009 seemed charming and functional for the home he shared with his wife in a posh golf community in the suburbs of Washington. It was a newer version of the mailbox the homeowners association previously approved and had sat at the end of their driveway since the couple moved to their Bowie-area home four years earlier. But no more than two months after Strong installed his new mailbox, he received an order to dump it — for a $500 mailbox upgrade. The board of the homeowners association voted to require all residents in the Woodmore golf community to buy metal mailboxes, monogrammed with the letter “W” and mounted on a decorative post. The $500 mailbox mandate angered Strong and others in the community, launching him into a seven-year fight that finally ended this month when a Prince George’s County judge signed, sealed and delivered a ruling that the board of the Pleasant Prospect Home Owners’ Association overstepped its bounds with its postal pronouncements. It’s a victory that cost Strong $33,000 in legal fees — roughly the price of 66 of the new bronze-colored mailboxes"

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This Washington Post story highlights several common features of HOA litigation: the triviality of so many of these disputes; the cost of using the court system that we all pay for to litigate them; and the way owners have to spend a fortune to contest association decisions;

Wednesday, January 11, 2017

Associa PCM's Wendy Bucknum Sworn in as Mayor of Mission Viejo

Associa PCM's Wendy Bucknum Sworn in as Mayor of Mission Viejo:

'via Blog this'

Eliminating the middleman, so to speak, property management giant Associa now has one of its own installed as the Mayor of a real city--Mission Viejo, CA.

Monday, December 19, 2016

North Carolina: Wake DA says Investigating HOA embezzlement case took time :: WRAL.com

Wake DA: Investigating HOA embezzlement case took time :: WRAL.com
"Authorities said Kelly is suspected of stealing as much as $800,000 from the HOAs. She was released from the Wake County jail Tuesday night after posting a $500,000 bond."
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Central Florida family fights HOA over Christmas lights

Central Florida family fights HOA over Christmas lights
Happens every year. I saw a huge house in Tinley Park, IL, last night that had so many lights I don't see how there was any electricity left for the neighbors.

New year and new HOA laws ahead - The Orange County Register

New year and new HOA laws ahead - The Orange County Register

Are HOA Dues Making Real Estate Unaffordable? | Mortgage Rates, Mortgage News and Strategy : The Mortgage Reports

Are HOA Dues Making Real Estate Unaffordable? | Mortgage Rates, Mortgage News and Strategy : The Mortgage Reports

Philippines: Antipolo homeowners' president gunned down in Christmas party | ABS-CBN News

Antipolo homeowners'association president gunned down in Christmas party | ABS-CBN News
"Investigators are eyeing land dispute and politics as the possible motive behind the killing."
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Wednesday, November 02, 2016

Unsigned Postcards Ask Homeowners To Take Down Campaign Signs « CBS Pittsburgh

Unsigned Postcards Ask Homeowners To Take Down Campaign Signs « CBS Pittsburgh: "PITTSBURGH (KDKA) — Some homeowners in the quiet Murdoch Farms section of Pittsburgh’s Squirrel Hill neighborhood are angry after getting postcards in the mail asking them to take down campaign signs in their yards.

The cards say in part, “If you feel strongly about your candidates, then talk to your neighbors, use other channels, like the Internet, and consider taking down the signs that are distracting from our beautiful neighborhood.”"

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While I understand the importance of political expression, I do understand why people get frustrated when they are everywhere. I have a neighbor who is a political activist. His yard is festooned with signs for every candidate for his party from president to dogcatcher. He goes door-to-door and pesters people to put up signs, too. This happens in every election cycle. The neighborhood is normally beautiful in the fall, with all the leaves changing, but instead we have garish signs everywhere.

But polite requests are just about the only way to address this issue. The Supreme Court ruled in the Ledou v. Gilleo case that political yard signs are protected by the First Amendment and cannot be banned by local ordinance, although they can be regulated. Many HOAs and condo associations have strict rules that go beyond what a municipality could do, which I guess responds to concerns like those voiced in this article.

HOA Horrors: Few checks and balances puts residents at whim of boards, covenants | 11alive.com

HOA Horrors: Few checks and balances puts residents at whim of boards, covenants | 11alive.com: "For years, 11Alive received a steady stream of tips from viewers, frustrated by the action of their HOA board. When our 11Alive Investigator Rebecca Lindstrom started digging, she found cases of favoritism, bullying, embezzlement – and very few checks and balances to make sure decisions came coupled with common sense.

More than two million people live in a neighborhood with an HOA and the numbers, with every new construction project around metro Atlanta, are growing. "

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I must have read about 500 of these breathless "crack investigative reporter discovers problems with HOAs" stories. You'd think they just found Bigfoot.

Tuesday, November 01, 2016

Videos show events before B.C. RCMP arrest of elderly couple | CTV News

Videos show events before B.C. RCMP arrest of elderly couple | CTV News: "The RCMP officers called to the scene of a raucous condo meeting in Coquitlam, B.C. are under investigation for their actions in the arrest of an elderly couple. The contents of a jarring cellphone video showing the elderly man dragged down a flight of stairs prompted not only an internal RCMP investigation, but also external investigations by an outside police force and a civilian review board. But new footage has emerged showing pieces of the scene leading up to the arrest.
The annual general meeting was held on Oct. 27, held at a Best Western in the Vancouver suburb, heated up over, what appears to be, the results an election."




HOA management company owner: Don’t confuse compliance with punishment - VEGAS INC

HOA management company owner: Don’t confuse compliance with punishment - VEGAS INC:



Ah, I see. Thanks for clarifying that distinction. But isn't a fine a punishment that is used to get compliance?

Grand Island Homeowners Association to file lawsuit against Lee Commission | Local News | albanyherald.com

Grand Island Homeowners Association to file lawsuit against Lee Commission | Local News | albanyherald.com: "LEESBURG — Plans to move forward with the proposed construction of a new 50-bed private hospital at the Grand Island Golf Course property in southern Lee County could take a hit this week once the Grand Island Subdivision Homeowners Association files a planned lawsuit against the Lee County Board of Commissioners.

Homeowners Association president and local obstetrician Dr. John G. Ricketson confirmed Monday that the property-owner group is planning to file a lawsuit some time this week alleging that the construction of the $50 million hospital would violate an easement set up by Grand Island developer John Gay in 1995.

According to Ricketson, a perpetual easement was granted by the developer to the property owners stating that “no natural or artificial barriers blocking the view or sight from the adjacent properties shall be constructed or created on the golf course property without the written permission of all the property owners.

“(The easement) says perpetuity, which means forever; it will provide for the preservation and enhancement of the adjacent properties,” said Ricketson. “We feel that’s any obstacle and that includes a three-story hospital.”"

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It would be quite a task, but I would love to know what percentage of HOA litigation is NIMBY lawsuits like this.


Tuesday, October 25, 2016

‘Failed experiment:’ Veterans’ homes bills raise privatization concerns | Fox17

‘Failed experiment:’ Veterans’ homes bills raise privatization concerns | Fox17: "GRAND RAPIDS, Mich. — A proposal meant to improve care for veterans in Michigan could prove to be a sweeping overhaul of how health care for veterans is managed statewide.

But critics worry this latest effort by lawmakers to fix the state's veterans health care system  will only continue to push state workers out in favor of more privatized care."




Privatization ‘Disproportionately Hurts Poor Individuals and Families’ | The Nation

Privatization ‘Disproportionately Hurts Poor Individuals and Families’ | The Nation: "In a compendium of privatization disasters, the watchdog group In the Public Interest (ITPI) concludes that “government privatization disproportionately hurts poor individuals and families.” By shifting social costs onto the public, the market logic of “personal responsibility” serves as a pretext for a self-perpetuating spiral of social disinvestment.

One way privatization fleeces the poor is by making basic public services cost more. "

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Privatization is not all good or all bad. Selling off government-owned enterprises, like car companies, airlines, and steel mills, may have worked pretty well in Europe, but privatization in Russia was a massive disaster that created the oligarchs and destroyed the Russian economy. It went from being a major industrial powerhouse to a third world exporter of petroleum products. The big question is how you measure success. Advocates of privatization always talk about economic efficiency, but this is often just rhetoric. In reality, many times all they do is fire government employees and replace them with lower-paid private employees who don't get decent benefits. Then they pocket the savings instead of passing them along to the taxpayers/consumers. And you have to consider accountability--how do you make sure the function is performed properly. So I realize that this report from ITPI is rhetorical as well--the organization is funded by public employee unions, but we do need to look hard at these fast-tracked, take-it-or-leave-it, privatization deals that so many people think are the solution to all problems.




Contractor accused of swindling homeowners out of more than $1 million | Public Safety | swnewsmedia.com

Contractor accused of swindling homeowners out of more than $1 million | Public Safety | swnewsmedia.com:



'via Blog this'

Friday, October 21, 2016

Whistle blower: Management firm misused HOA funds | Aspen Daily News Online

Whistle blower: Management firm misused HOA funds | Aspen Daily News Online

"A complaint filed with the state of Colorado’s real estate regulatory agency alleges that a local property management firm has, since 2012, misused funds intended for homeowners’ association payments in the upscale residential neighborhoods at the base of Aspen Highlands.


The funds in question could total $500,000 or more, said a witness to the complaint filed recently with the Colorado Department of Regulatory Agencies’ Division of Real Estate, alleging misrepresentations by Diamond Kip’s Inc., which does business as Aspen Valley Services."

Department Seeks to Expand Infrastructure Privatization > U.S. DEPARTMENT OF DEFENSE > Article

Department Seeks to Expand Infrastructure Privatization > U.S. DEPARTMENT OF DEFENSE > Article

Military family housing privatization has been under way since 1996. The defense acquisitions website reports that at the beginning of the program, the department had an inventory of approximately 257,000 family housing units. Current plans are to privatize about 75 percent of existing family housing units worldwide.
“Why did it take us so long to implement housing privatization?” Potochney asked. “I don’t think there’s anybody who doesn’t think it’s a great thing, and it’s worked well, and it’s saved us money, and it’s gotten soldiers, sailors, airmen and Marines better housing than they had before.”

Wednesday, October 12, 2016

Feds Looking at Easing Up Financing Rules for Condo Developers - CoStar Group

Feds Looking at Easing Up Financing Rules for Condo Developers - CoStar Group: "FHA currently requires that approved condominium developments have a minimum of 50% of the units occupied by owners. While having too few owner-occupants can detract from the viability of a project, requiring too many can harm its marketability, the agency said.

Through this proposed rule change, FHA is proposing to establish an allowable range between 25% and 75%. The range allows FHA to choose a specific percentage that is responsive to future market changes.

FHA is also looking at expanding the range for allowable nonresidential use.

FHA currently requires that the commercial/nonresidential space within an approved condominium development not exceed 50% of the project’s total floor area, and anticipates maintaining this as a requirement in the near term.

However, as the agency gains experience with this program, it may wish to modify this limitation and is therefore proposing to establish a range between 25% and 60%, it said.

FHA also has proposed reinstating spot approvals in unapproved condominium developments and to require condo projects to recertify their approval status every three years rather than the current two-year requirement.
"



'via Blog this'

New FHA Condo Rules Expand Access to Reverse Mortgages

New FHA Condo Rules Expand Access to Reverse Mortgages: "In response to changing conditions in the condominium market, the Federal Housing Administration (FHA) today proposed new rules that would allow individual condo units to become eligible for FHA financing, including Home Equity Conversion Mortgages (HECMs), an agency spokesman confirmed to RMD.

FHA is currently seeking public comments on the 43-page proposed rule that seeks to reinstate a process similar to “spot approvals” in unapproved condo developments, as well as create a range of thresholds required for FHA approval, including the minimum owner-occupants in approved condo projects and limits on commercial/non-residential space, the agency stated in a release.


The proposal, which “certainly includes HECMs,” according to the Department of Housing and Urban Development (HUD) spokesman, will differ from the agency’s former “spot approvals” process, though no further details were able to be provided."



'via Blog this'

Will you become a citizen of Asgardia, the first nation state in space? | Science | The Guardian

Will you become a citizen of Asgardia, the first nation state in space? | Science | The Guardian: "Proposals for the “first nation state in space” have been unveiled by a team of scientists and legal experts, who say the move will foster peace, open up access to space technologies and offer protection for citizens of planet Earth.

Dubbed “Asgardia” after one of the mythical worlds inhabited by the Norse gods, the team say the “new nation” will eventually become a member of the United Nations, with its own flag and anthem devised by members of the public through a series of competitions."



'via Blog this'

Wednesday, May 18, 2016

Trotwood HOA responds to liens, worn facilities | Dayton News | www.whio.com

Trotwood HOA responds to liens, worn facilities | Dayton News | www.whio.com



And here is the HOA's response to media coverage of owners withholding assessment payments because they don't think they are getting their money's worth, and then getting hit with liens:

"Not long after last week’s report, the HOA sent out an email in response. “The recent WHIO-TV broadcast orchestrated by a delinquent homeowner…will fail in its attempt to stop the collection of delinquent assessments. If you thought you could move here and change our neighborhood to be like the ghetto you came from…think again.”


Homeowners pay thousands to illegal HOA | Fox 59

Homeowners pay thousands to illegal HOA | Fox 59

"CUMBERLAND, Ind. – For more than a decade, homeowners in a Cumberland neighborhood have been paying dues to an illegal HOA. According to state records, the Harvest Glen HOA was dissolved in 2002 because required paperwork to reinstate the organization was never completed.  A few days ago, the neighborhood treasurer sent each homeowner a letter and a stack of approximately 100 pages of detailed expense reports showing how HOA dues were spent. Every year, every Harvest Glen homeowner pays $50 for HOA dues, which is mainly for lawn care upkeep in the common areas. For the past 14 years, state records show the neighborhood hasn’t had an operating HOA."

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OK, so maybe we didn't dot every "i" and cross every "t" for the last fourteen years, but basically we more or less kinda sorta did HOA-type stuff. What's your prob?

Tuesday, May 17, 2016

Woman accused of stealing from Kennesaw HOA | WAGA

Woman accused of stealing from Kennesaw HOA | WAGA: "KENNESAW, Ga. - A former Kennesaw property manager faces criminal charges.

Wendy Teresa Robinson is accused of stealing more than $8,000 from a home owners’ association fund. Police said Robinson worked as the property manager for the Legacy Park HOA at the time of the theft."


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The need for outside financial oversight of condos and HOAs becomes more obvious every day.

Dissecting the CAI white paper manifesto on Association  Governance (part 1) – Independent American Communities

Dissecting the CAI white paper manifesto on Association  Governance (part 1) – Independent American Communities:



Deborah Goonan's take on CAI's Community Next: 2020 and Beyond: The Association Governance Model--Panel Report

Monday, May 16, 2016

Despite Their Higher Education, Millennials Still Aren't Buying Homes - CityLab

Despite Their Higher Education, Millennials Still Aren't Buying Homes - CityLab:

  "A bachelor’s degree is not a requirement for homeownership, but it is starting to look like one. As household incomes are increasingly linked to educational attainment, so is homeownership status. At the same time, higher education can be a temporary barrier to homeownership. This paradox might be the driving factor of the U.S. housing market today, which is still slow to grow even despite a strong recovery"

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I've seen several studies on this. The growing income gap between college graduates and people without degrees means that graduates are more likely to be able to buy a home. But, because it takes four years to get the degree, the college graduates get married and/or enter the housing market later. The often-repeated claim that college graduates can't afford homes because of student loans doesn't stand up to empirical analysis. But part of this is on the supply side.   The real estate development industry is not building many starter homes at present, in large part because of the higher lending standards that still prevail.

Sunday, May 15, 2016

Squatters See a New Frontier in the Empty Homes of Las Vegas - The New York Times

Squatters See a New Frontier in the Empty Homes of Las Vegas - The New York Times

"In Las Vegas, the crackdown against squatters coincides with a resurgence, albeit modest, in the local housing market. Foreclosures are falling and home prices are creeping upward (though they remain far short of the prerecession peak). But with a transient population of down-and-out gamblers and a glut of homes that have already been foreclosed, opportunists can still take their pick of thousands of empty houses. Inside one, squatters had scrawled a warning to stay away on a wall: “Violent tweekers on guard.”

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During the housing boom there was far too much housing built in Las Vegas. Developers were trying to take advantage of the easy credit that was available to home buyers back then. In other words, these housing units were expressly built for people who couldn't afford them. There was no real market for them then, and there is even less of a market now. So now that the cocktail waitresses and golf caddies have lost their $300,000 homes to foreclosure, there is no real buyer for these units and they sit idle. In come the squatters. This is going on in other nations as well. Spain is a great example, where Barcelona elected a socialist as mayor in part based on a proposal to legalize squatting.

Thanks to Fred Pilot for this link.

Saturday, May 14, 2016

Happy Together - The New Yorker

Happy Together - The New Yorker

"The building, Kennedy’s new home, is run by the co-living startup Common, which offers what it calls “flexible, community-driven housing.” Co-living has also been billed as “dorms for grown-ups,” a description that Common resists. But the company has set out to restore a certain subset of young, urban professionals to the paradise they lost when they left college campuses—a furnished place to live, unlimited coffee and toilet paper, a sense of belonging."

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Sounds a bit like an episode of "Friends," and I can see the attraction of it. A lot of Americs are looking for a sense of community in a small, shared, living environment. Except for some seniors developments, I don't think many people find that in condominiums or HOAs.

Friday, May 13, 2016

Legislator pushing for more oversight of homeowners associations | Local news | tucson.com

Legislator pushing for more oversight of homeowners associations | Local news | tucson.com

"Farnsworth’s bills would add regulations to the operation of HOAs. SB 1496 deals with HOA directors, stipulating that if a member of the board of directors is removed from their position, he or she cannot be reappointed to that post. It’s an issue that has been raised by homeowners. The other bill is SB 1498, which would require HOAs to provide ample warning time for homeowners before charging late fees and inform homeowners of their right to dispute the fees through a state process. HOAs would also have to maintain members’ voting records for one year. Both bills have passed the Legislature. Gov. Doug Ducey signed SB 1498 into law. The other bill has not yet been signed."

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See the post immediately below.

Former Quail Run HOA treasurer accused of grand theft - wptv.com

Former Quail Run HOA treasurer accused of grand theft - wptv.com

From Palm Beach: "A former treasurer for the Quail Run Homeowners Association has been charged with grand theft, according to the Boynton Beach Police Department. Police arrested Norman Glavas, 69, Thursday morning. Investigators say he embezzled more than $50,000 from the HOA."

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The need for transparency and oversight of HOA/condo association finances is obvious.

Thursday, May 12, 2016

HOA bans homeowners renting to sex offenders, but is it legal?

HOA bans homeowners renting to sex offenders, but is it legal?: "HOUSTON - A Fort Bend County neighborhood's homeowners association has put a ban on any homeowner renting to a registered sex offender.

Lots of families with young children live in the Kingdom Heights neighborhood. The deed restrictions established by the HOA for the quiet suburban Houston community are crystal clear -- no homeowner may lease a residence to a registered sex offender...The state's property code calls into question the HOA's deed restrictions. It was revised last year and states that HOAs can no longer be involved in the approval process of a lease agreement for prospective tenants. Essentially it says an HOA has to mind its own business."

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Once again we have an HOA attempting to do something that appears to be against the law. See below for the HOA in California that wants to violate state law concerning watering lawns in a drought.

Wednesday, May 11, 2016

FHFA Vows to Keep Fighting HOA Super-Priority Liens - DSNews

FHFA Vows to Keep Fighting HOA Super-Priority Liens - DSNews

"The Federal Housing Finance Agency (FHFA) has reaffirmed its support of authorized servicer reliance on the Housing and Economic Recovery Act (HERA) of 2008 in foreclosures involving homeowner associations (HOAs) and super-priority liens, saying it will “aggressively” fight any HOA that tries to extinguish a Fannie Mae or Freddie Mac lien through foreclosure.

The super-priority lien issue has been a contentious one since it came to prominence following a decision by the Nevada State Supreme Court in September 2014 that allowed HOAs to use super-priority liens to foreclose on homes with delinquent HOA dues—without the permission of the mortgagee.

The FHFA responded in December 2014 with a warning to HOAs that loans with super-priority liens attached would not push mortgages backed by Fannie Mae and Freddie Mac into the secondary position. In June 2015, a federal judge in the U.S. District Court for the District of Nevada ruled that HOAs could not foreclose non-judicially on GSE-owned mortgages using a super-priority lien.

In August 2015, FHFA stated its support of authorized servicers of GSE loans that rely on the HERA to prevent HOAs from foreclosing on loans insured by Fannie Mae and Freddie Mac. The FHFA recently reiterated its position in support of the servicers."

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 It will be interesting to see if the CID industry is able to prevail over opposition from the Masters of the Universe.  The banking industry and the GSEs have enormous political clout.

Ducey vetoes bill that would allow developers to levy taxes on homeowners

Ducey vetoes bill that would allow developers to levy taxes on homeowners

"The governor rejected House Bill 2568, a priority of House Speaker David Gowan, citing concerns the legislation could harm taxpayers. The bill would have changed financing rules for community facilities districts, which are special taxing districts created to pay for infrastructure such as roads, sewers and water lines. Gowan, backed by a coalition of developers and investors, argued the bill would allow development to proceed more rapidly, primarily because it would have loosened some control local governments have over formation of the districts. For example, it would have mandated a district be formed upon request by landowners, and it would have given developers more control of the district's financing. Local governments pushed back, complaining the bill would minimize the oversight cities and towns provide on the tax rate needed to pay for infrastructure. Local government, controlled by elected officials, is more accountable than a board controlled by unelected developers or their designees, they said."

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These special districts are being used increasingly in Florida, Colorado, California, and other states. They give developers total control over public--not private--government entities that can issue muni bonds to pay for building infrastructure. Guess who pays back the bondholders, through property taxes? Right--the eventual home owners. And these districts are usually set up to be so undemocratic that they make HOAs look like Rousseau's peasants regulating the affairs of state under an oak tree (Jean-Jacques Rousseau, The Social Contract, Book IV, Ch. 1, if you are interested). Interestingly, most of the people who think HOAs are undemocratic and illiberal have zero to say about special districts.

Monday, May 09, 2016

Confessions of a Donald Trump Tabloid Scribe - POLITICO Magazine

Confessions of a Donald Trump Tabloid Scribe - POLITICO Magazine: "He wanted attention, but he could not control his pathological lying. Which made him, as story subjects go, a lot of work. Every statement he uttered required more than the usual amount of fact-checking. If Trump said, “Good morning,” you could be pretty sure it was five o’clock in the afternoon...I once received a tip that Trump and Richard Nixon had had a lengthy meeting in Trump’s office. Trump said he knew nothing about it. I ran the story, not only because I had an excellent source, but also because a Nixon aide confirmed it. Nixon, who was shopping for a condo the day he met with Trump, may have had issues with credibility in his time, but over Trump, I’d have believed him any day. Trump was such a pretender he even used to fake being his own spokesman, as I learned recently, though I never heard from the faux flack he called John Barron." 

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We have never had a condo developer run for President before. Trump has learned the art of the big lie. When he is caught lying he just keeps right on blustering through. He has no sense of shame or guilt.

Saturday, May 07, 2016

Law meant to protect Wash. homeowners instead pushing up condo prices | KIRO-TV

Law meant to protect Wash. homeowners instead pushing up condo prices | KIRO-TV



SEATTLE —

In a housing market rife with new apartment complexes, there is an extremely short supply of condominiums being built and sold. Puget Sound developers point to substantial risk in building condos, due to the Washington Condo Act, a risk that does not exist for apartment development.

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What is this supposedly draconian law that developers are whining about?

It states a condo must be:
(a) Free from defective materials;
(b) Constructed in accordance with sound engineering and construction standards;
(c) Constructed in a workmanlike manner; and
(d) Constructed in compliance with all laws then applicable to such improvements.

Doesn't sound all that oppressive to me.

The GOP's 24-hour meltdown - POLITICO

The GOP's 24-hour meltdown - POLITICO



The right wing thought that, at long last, this was going to be the year a virtuous "true conservative" made up for Goldwater's obliteration in 1964. Half a dozen of the candidates would have made them happy. Then all of them got personally humiliated and driven from the race by an unprincipled, narcissistic, quasi-fascist bully. The final blow: they are now expected to support him. No wonder they are...unhappy.

It will be interesting to see how far the American Mussolini's cult of personality can take him. His followers are so swept away by his empty promises to make everything "great," with "so much winning," that they have lost all capacity for critical thought.

Thursday, May 05, 2016

Sperlonga, Equifax to record HOA payments for credit scores | 2016-05-04 | HousingWire

Sperlonga, Equifax to record HOA payments for credit scores | 2016-05-04 | HousingWire:

"Sperlonga will use its technology to automatically extract assessment payment data and account status every month for all HOA property owners, according to a release. It will then report the account data to Equifax.

"We believe this will have a major impact on the HOA industry," Sperlonga CEO Dan Berman said. "According to the Community Association Institute, associations along with property management companies collect approximately $70 billion in assessment payments each year and CAI estimated there were at least 333,000 community associations in the U.S.""




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Nobody knows how much HOAs and condo associations collect because government has washed its hands of any responsibility for this massive privatization of services and infrastructure. But in any event, now people who fall delinquent on their HOA assessments will have a problem with their credit rating.

Man admits stealing $2.5M from homeowner associations - The Washington Post

Man admits stealing $2.5M from homeowner associations - The Washington Post:

"BALTIMORE — A man who prosecutors say financed a lifestyle of nightclubbing, NBA games, manicures and limousines by stealing $2.5 million from his clients has pleaded guilty to wire fraud.

The U.S. Attorney’s Office said in a news release that 39-year-old William Francis of Elkridge entered the plea Wednesday in federal court in Baltimore.

Prosecutors say Francis owned two companies which managed HOA reserve funds, which were typically held in savings or money market accounts.

According to his plea agreement, Francis defrauded at least 51 of his company’s HOA clients by taking reserve funds.

Prosecutors say Francis spent the money on Washington Wizards games; adult entertainment venues and nightclubs; dog grooming services; a nail salon, and a limousine service.

Francis faces a maximum of 20 years in prison at sentencing Sept. 13."




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Yet another embezzlement from HOA reserve accounts. When will state legislators understand that there has to be oversight of HOA/condo finances?



Thanks to Shu for this link.

Wednesday, May 04, 2016

Bill would grant tax deduction for homeowners association assessments - Chicago Tribune

Bill would grant tax deduction for homeowners association assessments - Chicago Tribune:



"The same residents also pay local property taxes to municipal, county or state governments. But unlike other homeowners, only their local property tax levies are deductible on federal tax filings. Their community association assessments that pay for government-type services are not. Now a bipartisan group of congressional representatives thinks that's inequitable and needs to be corrected. Under a new bill known as the HOME Act (H.R. 4696), millions of people who live in communities run by associations would get the right to deduct up to $5,000 a year of assessments on federal tax filings, with some important limitations:

• Deductions would phase out if their incomes exceed $115,000 for single filers, $150,000 in the case of joint returns.


• The property would have to be their principal residence, not a vacation or rental home.


• To qualify for write-offs, the assessments would have to be "regularly occurring," mandatory levies that directly benefit taxpayers' properties and that exist solely because of their automatic membership in the homeowners association.


The bill's primary author is Rep. Anna G. Eshoo, D-Calif. Co-sponsors include Reps. Mike Thompson, D-Calif., and Barbara Comstock, R-Va.. Though the bill has little chance of moving through the House or Senate during this election year, it sends a message to the legislative committees now working on possible tax code changes for next year: Congress needs to acknowledge the role the country's community associations play in providing municipal-type services. The way to do it is to allow deductions on a capped amount of the money residents are required to pay to support community services."

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The bill has industry support. I would be surprised if this passed, because it would cost billions of dollars in lost income tax revenues, but it it interesting to see bipartisan support for the idea. Here is  link to the text of the bill.

Tuesday, May 03, 2016

Documents meant to combat fraud in condo elections raise more questions | Miami Herald

Documents meant to combat fraud in condo elections raise more questions | Miami Herald: "Representatives of Sunshine Management Services, which manages the complexes, said it implemented the new system of securing affidavits to prevent electoral fraud. The company has said residents have repeatedly complained about falsified signatures on the ballot or ballot envelopes in elections of association boards.

But an investigation by El Nuevo Herald and Univision 23 showed that the affidavit system put in place by the company has substantial irregularities."

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Indeed.

Monday, May 02, 2016

Hundreds protest against condo fraud in South Florida | Miami Herald

Hundreds protest against condo fraud in South Florida | Miami Herald:

  "More than 250 South Florida condo residents marched Saturday through the streets of Doral to demand that authorities take steps to stop a wave of fraud hitting their neighborhoods.

With posters, flags and whistles, the group of protesters marched through downtown Doral shouting about alleged abuses by their board of directors and the private companies hired to manage the condominiums.

“We want our demands heard in Tallahassee,” said William Mendieta, one of the organizers of the march and resident of the Las Vistas condos in Doral. “We have left behind apathy and indifference to unite with other condos so that together we can make one request: Justice!”

It was the fifth public protest since an investigation by el Nuevo Herald and Univision 23 in March revealed the systematic frauds facing condos in Miami-Dade County — including at least 84 fraudulent votes in November election for the board of directors at The Beach Club condos in Fontainebleau Park, and a fraudulent bidding process in which a company won a $5.2 million contract in a competition against two front companies."




'via Blog this'

Puerto Rico Will Default on Government Development Bank Debt - Bloomberg

Puerto Rico Will Default on Government Development Bank Debt - Bloomberg

"Puerto Rico will default on a $422 million bond payment for its Government Development Bank, escalating what is turning into the biggest crisis ever in the $3.7 trillion market that U.S. state and local entities use to access financing...A default on those constitutionally guaranteed bonds would be the first by a state-level borrower since Arkansas missed payments on its debt in 1933. That would likely trigger a restructuring of the commonwealth’s $13 billion of general obligations, which would be the largest-ever in the tax-exempt market."
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This situation has been building for a long time. Puerto Rico has $70 billion in muni bonds, they have been in the grip of a severe recession for a long time, and now they are in the process of defaulting on these bonds, piece by piece. There is an unusual problem in that Puerto Rico is a US territory, not a sovereign nation, so it can't go to the International Monetary Fund or pursue other sovereignty-related remedies. It isn't a state, either, and it can't go bankrupt. Congress passed  law in 1984 saying that US territories can't use Chapter Nine, the bankruptcy provision for local governments. So Puerto is betwixt and between, as the saying goes. They can't pay and they can't discharge or reorganize the debts, so they are defaulting. The Republican-controlled, do-nothing, blame-Obama-for-everything Congress could fix this, but so far they haven't.  Republican Speaker of the House Paul Ryan clearly wants to take action.

Sunday, May 01, 2016

LaHood alleges misuse of HOA funds for pool - San Antonio Express-News

LaHood alleges misuse of HOA funds for pool - San Antonio Express-News

"More than $300,000 in homeowner association funds for a swimming pool that was never built are at the center of a criminal case filed against two men with ties to the city of Windcrest.

Bexar County District Attorney Nico LaHood said Robert Colunga and Tom Pittman were indicted by a grand jury in April on the first-degree felony charges. Although a civil lawsuit is pending in the project, LaHood said he believes a criminal case also is warranted against the two men, and possibly others, the case involving plans for a pool to be built in San Antonio’s Stone Oak area."

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Texas is about as laissez-faire as any big state when it comes to regulating what goes on in HOAs. And these private associations have a lot of power over people there. Civil litigation alone doesn't get the job done. With $300K in losses, it isn't hard to see why criminal charges are being filed. The question is, how many other associations have similar problems that haven't come to light?

New Local Law Says Parents of Bullies Must Pay Fines if They Don’t Control Their Kids | LawNewz

New Local Law Says Parents of Bullies Must Pay Fines if They Don’t Control Their Kids | LawNewz

Interesting approach. I'm always intrigued by local ordinances that experiment with unusual approaches to solving problems. There is something called "vicarious liability," where one person is held legally responsible for the conduct of another person, but I've never read about it being applied in this way.  Bullying is a big problem and currently nobody pays for it except the kids who get bullied. Teachers and principals pretend they don't know it is happening, parents deny that their precious snowflake would ever bully anybody, the police pretend that crimes like assault and robbery aren't crimes if they happen in a school, and the bullies get away with it. So here is an effort to fine the parents of the bully. But is it legal to impose fines on parents for not preventing something their kid did when he was at school, supposedly under the control of school officials?

Michigan Lawsuit Shows U.S. Voters May Not Technically Have the Right to Elect Their Mayors - CityLab

Michigan Lawsuit Shows U.S. Voters May Not Technically Have the Right to Elect Their Mayors - CityLab

From the State of Michigan's brief, defending the power of state-appointed emergency managers to take over running a city:



"Here, Plaintiffs are still free to vote in federal and state elections. And they offer no adequate support for the proposition that the right to vote in local elections, once extended, becomes a fundamental right as opposed to simply a right to participate on equal footing. ...Nor do Plaintiffs’ cited cases offer support for a recognized right to participate in local political processes, even where the local unit is a legislative body."



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I've posted about this case before.  The State of Michigan says that as long as there are state and federal elections, the right to vote is not impaired--you have no right to vote for local government officials. If the state "extends," i.e, give you out of the goodness of their heart, that right, then it still doesn't include the right to choose the people who make the real decisions.
The implications go beyond Michigan. Extend the principle to other parts of the local government system. County boards, special districts, school boards, and the rest of the alphabet soup of local government entities.  Do you have the right to choose the people who make the decisions on those bodies? Or can a governor put them in receivership?
As for HOAs, if the state can take away your power to choose the city council and the mayor, making constitutional rights arguments about HOA elections would seem like a lost cause. So this case is significant. It is in the District Court now, meaning the lowest level of federal court where trials are held. But if it goes up on appeal to the Sixth Circuit, it could become a major case on voting rights and autonomy of cities. The Center for Constitutional Rights is co-counsel, challenging the emergency manager law. You can read up on it there.

Saturday, April 30, 2016

Colo. Court Case Puts Spotlight on Special Districts That Issue Munis | The Bond Buyer

Colo. Court Case Puts Spotlight on Special Districts That Issue Munis | The Bond Buyer

"A broad ruling by the Colorado Court of Appeals in a case of a developer's egregious fraud has sent lawyers to the state's General Assembly for legislation to protect existing special districts that issue tax-exempt bonds...The case involves a high-profile developer, Zachary Davidson, who used sham contracts to make him and five associates organizers or "eligible electors" who formed a special metropolitan district in Greenwood Village, Colo. that issued almost $35 million of bonds now in default. Davidson included nearby condominium purchasers in the district and obligated them to pay taxes to help pay off the bonds, even though the condo owners were unaware they were in the district or that bonds had been issued. Davidson stole millions of dollars of bond proceeds for his personal use and was eventually indicted on 20 felony counts by an Arapahoe County, Colo. grand jury. He eluded law enforcement for months and ultimately committed suicide by hanging himself from a tree in Withlacoochee State Forest in Florida at age 46. After several years of litigation, the Colorado Court of Appeals issued a ruling on April 21 favoring the condo owners' Landmark Towers Association, Inc., ruling in part that Davidson used sham contracts to give him and his associates control of the special district and the bond issue."



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Here is a link to the opinion.  The court ruled, "In sum, because the TABOR election was conducted illegally —with the participation of ineligible voters and without constitutionally required notice to eligible voters — the District’s taxes to pay the bonds were levied illegally. Pursuant to TABOR’s refund provision, the District must refund all illegal taxes paid with ten percent annual simple interest. Id. at § 20(1). The Landmark buyers are also entitled to an order enjoining the District from levying any further taxes without proper voter approval."



So now the lawyers and people buying these special district muni bonds are afraid that other people will head for court to unwind the tax obligations imposed on them by these special districts.  They want the Colorado state legislature to save them from more litigation. As I have written before in connection with Florida's special districts, some of these arrangements are so undemocratic and autocratic that they make HOAs look like the Golden Age of Pericles.



And the Colorado special district debacle has the potential to shift the national picture on these "dirt bond" districts:  "The Treasury and IRS are now proposing rules to expand that test to add two new requirements. Under rules they proposed February, a political subdivision that can issue tax-exempt bonds, would also have to serve a governmental purpose and be governmentally controlled "with no more than an incidental private benefit. The proposed rules have met with a firestorm of criticism from muni lawyers who have warned they would threaten existing special districts and potentially millions of dollars of bonds."



Stay tuned--this sort of thing flies under the public's radar, so you never know what a state legislature will do with it.


Rauner turns to privatization push during second year in office - Chicago Tribune

Rauner turns to privatization push during second year in office - Chicago Tribune

Illinois Governor Bruce Rauner is a private equity billionaire with no political experience and no idea what he is doing, except that he hates the very idea of government and public employees and unions and wants to destroy all three.  He used his personal wealth and his connections to other fat cats to basically buy the job.  He funneled millions of his own money into a record-breaking tsunami of money and outspent Pat Quinn almost two to one.  He also had the help of the Chicago Tribune, which is relentlessly anti-union and pro-big business, and the Chicago Sun-Times as well (there were some interesting financial connections there).  His big idea is to turn Illinois into a Republican state. He wants to destroy the Democratic Party's political base. Destroy unions, the tort system, public employee pension systems, and the workers' compensation system.  Let cities and school systems go bankrupt so they can break their contracts with unions. Enact term limits to get rid of powerful Democrats in Springfield. It's basically Scott Walker in Wisconsin without the charm.



But Democrats won big in both houses of the state legislature, and they won't commit political suicide by abandoning the people who voted for them. So how was Rauner to impose his "turnaround agenda" on the state? Simple: refuse to sign budget bills, starving social service agencies and the public education system of funds. That's what he has been doing since the day he was elected. Poor people, the disabled, the elderly, and students will suffer until the legislature turns the whole state over the Rauner and his party. Social service providers are laying people off and going out of business. Chicago State University just laid off 1/3 of it's staff.  And the suffering goes on, and on, and on.



Rauner  is one of these American corporate tough guys who proves how tough he is not by suffering himself, but by enjoying the suffering of the little people.



Now his big idea is to privatize every single state function that he can.  There seems to be no principle behind this--no set of guidelines for which services would be better to privatize and which to keep inside government.  And of course he won't work with the Democratic Party that controls the state legislature, so this is going to be done through executive action.



The risks here are obvious. People may end up paying more for less. The opportunities for corruption increase. Wages will be lowered and people will be laid off, leading to consumers having less purchasing power, which may hurt the state economy.



I wish I could find some silver lining in the so-far disastrous Rauner administration, but I can't. This man is just destroying everything he can't control, and he doesn't seem to care who gets hurt.

Friday, April 29, 2016

Master-Planned Communities Look to Innovative Future - Urban Land Magazine

Master-Planned Communities Look to Innovative Future - Urban Land Magazine

"One of the notions presented to the panel was to offer health care for MPC communities. “If a company has 10,000 employees and can offer insurance to all of them, why can’t an MPC insure the 5,000 people in the community?” Cecilian asked. “When we consider millennials today, the two great concerns are health care and student loans. Why not look at the residential community to provide group health insurance? It’s a very interesting concept, especially with what’s happening in tele-medicine. You could make group health insurance part of the real estate package...Among the other topics considered: raising equity or debt through crowdfunding and providing for driverless cars. Crowdfunding in MPCs could be used to support community amenities, create retail options earlier, or construct revenue-producing venues such as golf courses. “Crowdfunding is coming and hitting real estate very quickly,” said Kaufmann. “Smaller-scale projects could be crowdfunded. There is a lot of money out there and it’s not that hard to organize. You should think about it for some pieces of the community.”

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Notice how the development industry always uses the fuzzy, feel-good word "community" instead of explaining exactly how your HOA, run by unpaid, untrained volunteers, would somehow become responsible for your health insurance.  And crowdfunding instead of assessments to pay for "community amenities" means that your private streets and the pool would be dependent on people chipping in whatever they want by clicking a button on a website.  



What could possibly go wrong with this bright, shiny future? 

Thursday, April 28, 2016

Nevada Supreme Court rules in favor of investors, banks in HOA fees case | Las Vegas Review-Journal

Nevada Supreme Court rules in favor of investors, banks in HOA fees case | Las Vegas Review-Journal: "CARSON CITY — The Nevada Supreme Court on Thursday ruled in a long-awaited dispute over homeowner association dues in super-priority lien cases, finding that Nevada law does not allow for the collection of costs and fees in addition to nine months of back-owed assessments.

The unanimous ruling came in an appeal brought by Horizons at Seven Hills Homeowners Association against Ikon Holdings.

The ruling is a major victory for investors, banks and others who acquired the foreclosed properties. It is a big loss for homeowners associations, collection agencies and others who sought additional compensation in the super-priority lien process.

The super-priority lien in Nevada law allows associations to recover nine months’ worth of assessments. But a legal dispute has been ongoing for years over whether fees and collection costs could be included as part of the lien."


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Superlien litigation (and legislation) is hot right now. Lending institutions are slugging it out with the community association industry over the wreckage of people's lives.

Brannon Hill condos allowed 30 days to remove trash | www.ajc.com

Brannon Hill condos allowed 30 days to remove trash | www.ajc.com: "Residents of a trash-filled and partially burned-down condo complex in DeKalb County are being given 30 days to clean up.

The Brannon Hill homeowners’ association and the county agreed in court Thursday to allow the community to remove debris, worn mattresses and tires strewn across parking lots before the government considers stepping in."


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Another crumbling condo development has become a burden on local government to the point where it may be declared a public nuisance.

Tuesday, April 26, 2016

Miami condo owners confused by election monitor | Miami Herald

Miami condo owners confused by election monitor | Miami Herald

"But what López and others involved in the election did not know was that Hidalgo is not a monitor appointed by the Office of the Condominium Ombudsman. In fact, since 2010 that office stopped assigning Hidalgo as an election monitor after stating that she “blatantly ignored” instructions prohibiting the delegation of responsibilities, misrepresented not being at a meeting and other issues. The ombudsman concluded the March 31, 2010, letter by stating, “your actions, lapses in judgment, and inattention to duty… have seriously undermined and diminished the trust and confidence placed in you and reflects adversely upon the election monitor program administered by this office.” Her identification badge was revoked."

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This is mind-blowing. This individual is still running around charging condominiums for monitoring elections. Here is her excuse. You will love this:  “I never say I am certified. I always say I was certified. Little words that are specific and powerful in any court,” said Hidalgo, who owns Luminary LLC, a company that supervises condo and co-op elections.




Monday, April 25, 2016

China Homeowners Live in Legal Limbo - WSJ

China Homeowners Live in Legal Limbo - WSJ: "SHANGHAI—A land-title dispute in southeastern China is highlighting a major uncertainty over homeowner rights in a nation where the government owns all the land."

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This situation has been the subject of several major revisions in the law over the last twenty years or so. It's a tough one to resolve. The national government wants to have a thriving real estate market, but local governments want to own and lease the land. That is a gross oversimplification but it will have to do for now.

Peterson: East Bay HOA's heavy-handedness leads to bigger conversation, expert says - San Jose Mercury News

Peterson: East Bay HOA's heavy-handedness leads to bigger conversation, expert says - San Jose Mercury News: "The residents of Blackhawk, the upscale East Bay gated enclave, recently received unsettling news from their HOA: Tidy up your landscaping by June 1 or face "aggressive enforcement" that could result in sanctions ranging from a fine to disabling transponders that open gates to your neighborhood.

Where to start? Like a lot of us, some Blackhawkians allowed their lawns to die last summer after Gov. Jerry Brown mandated a 25 percent reduction in residential water consumption. Like a lot of us, some Blackhawkians will be soon be consulting with landscapers."


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I am quoted in this article. I posted something about Blackhawk the other day. There is a state law in California that prohibits HOAs from taking certain enforcement actions when there is a declared drought emergency. Maybe there's some aspect to this particular situation that I don't understand, but based on the facts as stated in these articles, I don't see how "aggressive enforcement" is appropriate. The El Nino conditions did produce some relief, but not enough. "Drought conditions have improved following a wet January and a relatively wet March, which raised water levels in many reservoirs to roughly average for the current date. However, this winter’s rain and snow levels have not been sufficient to end one of the state’s worst droughts in recorded history." 

Homeowners’ Associations and the First Amendment: Are your 5 Freedoms Guaranteed? – Independent American Communities

Homeowners’ Associations and the First Amendment: Are your 5 Freedoms Guaranteed? – Independent American Communities:



Deborah Goonan weighs in on the issue of civil liberties in HOAs.

Sunday, April 24, 2016

5 Reasons You Hate Your HOA

5 Reasons You Hate Your HOA

I'm quoted in this Kiplinger article, but I didn't say anything about hating anybody.



McKenzie tells me “there are very few avenues for individuals to take on their associations.” There are elected seats on the board, usually filled by home owners, but manipulating that internal political process is “harder to do than it sounds." And getting bylaws changed? Forget about it. "The problem is those governing documents were intentionally set up to be very hard to change," McKenzie says. "This has always been like this, back into the ‘60s. They want to know that the product isn’t going to change, so they made the declarations very hard to amend.”



Resorting to a lawyer is another route, but a tricky one, says McKenzie. Judges won’t smile down on you. “They look at you like you’re complaining about something you agreed to; you accepted the rules.”

Sea change for Florida's 60,000 homeowners associations - Sun Sentinel

Sea change for Florida's 60,000 homeowners associations - Sun Sentinel

"On July 1, Florida law was amended to give condominiums, cooperatives and homeowners' associations throughout Florida the right to conduct membership votes online. While online voting has been permitted for some time in other states, this new law represents a sea change for Florida's more than 60,000 community associations. For communities with a large percentage of investor and snowbird owners, online voting gives these owners a newfound opportunity to participate in important membership votes in their association. Currently, many of these owners are unable to timely return voting materials and they are disenfranchised as a result. Even for owners who are local but do not wish to attend meetings or send in a proxy, online voting may spark an increase in their participation."

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Ordinarily I'm in favor of making voting easier in all elections. I hear from young people all the time that they want to vote in public elections with their smart phones.  But here we have the issue of whether absentee/investor owners have a different set of interests than the resident owners who actually live in the community. If so, making it easier for non-residents to vote changes the balance of interests in elections. Attorney Donna Berger is the author of this article and she is all for this change, and her firm is selling a software voting package.  We will have to see how this works out in practice.

Stapleton HOA that blocked radon mitigation is now charging legal fees - 7NEWS Denver TheDenverChannel.com

Stapleton HOA that blocked radon mitigation is now charging legal fees - 7NEWS Denver TheDenverChannel.com



DENVER - The Stapleton Homeowners Association that blocked a homeowner from installing a radon mitigation system is now sticking her with the legal fees before she sells her house.



"It's so ludicrous," said homeowner Melissa Crowder. "I am sure they are absolutely embarrassed, and that's their way of getting back to me."

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I won't get into the merits of this particular dispute, but speaking in general, fee-shifting provisions in CC&Rs and the statutory and contractual lien powers of associations carry with them the potential for abuse. It is an aspect of HOA/condo activity that needs to be subjected to more careful judicial oversight.

Friday, April 22, 2016

Homeowners' Associations Could Face Liability for Bear Attacks | Lowndes, Drosdick, Doster, Kantor & Reed, P.A. - JDSupra

Homeowners' Associations Could Face Liability for Bear Attacks | Lowndes, Drosdick, Doster, Kantor & Reed, P.A. - JDSupra



I didn't know there were so many black bear sightings in Florida. I thought all they had were Burmese pythons, boa constrictors, alligators, piranha, walking catfish, and wild boar. Who knew they had anything normal that could kill you.

Michigan Lawsuit Shows U.S. Voters May Not Technically Have the Right to Elect Their Mayors - CityLab

Michigan Lawsuit Shows U.S. Voters May Not Technically Have the Right to Elect Their Mayors - CityLab

"Public Act 436 seeks to put local governments on better financial footing. It does this by appointing an [emergency manager] in jurisdictions where the Governor and State Treasurer have determined that the local government was experiencing a financial emergency. The Act does not take away a fundamental right to vote, because such a right has never been recognized by the courts."

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So said Federal District Court Judge George Steeh, in an order that is on appeal.



Most Americans view the right to vote as fundamental, as they understand that word. And they believe that self-government at the local level is a fundamental right that is at the core of popular sovereignty. But most Americans don't understand the constitution very well.  Listen to the utter nonsense that comes from "sovereign citizens," militia goons, property rights extremists, gun rights absolutists, Cliven Bundy, and a host of other fanatics, who come up with their own bizarre interpretations of a constitution that they don't remotely understand. For them, it means whatever makes them feel good.



The word "fundamental" has special meaning in the context of civil liberties jurisprudence. Some liberties and rights are viewed as being essential to constitutional governance, and laws that infringe on those liberties and rights are viewed with "strict scrutiny" by the courts.  When it comes to the right to vote, what is the scope of that right, and how "fundamental" is it?  In the context of the emergency manager law, is the right to vote merely the right to trot off to the polls and vote for people of your choice, or does the right to vote require that the people you vote for have the power to govern your community?  Because people in cities that had been taken over by governor-appointed emergency managers could still vote for city officials. It's just that the municipal officials they voted for no longer had any power to govern.



Related to this is Dillon's Rule, which is the old doctrine saying that local governments are just creatures of state law and state constitutions, with no constitutional right to exist except insofar as state law permits. Home rule statutes were a response to this principle, but ultimately those are just state laws, too, by which states delegate sovereignty to cities. That means state laws can take it away again.



To me, the right to vote is fundamental, and it should include the right to local self-determination. Operationalizing that can involve a lot of detailed issues, of course. But I don't like this emergency manager system, and I think the racism that underlies it is obvious. As the article explains, quoting a legal brief, there is a scoring system to determine whether to appoint an EM, and:  "...six out of seven communities (85%) with a majority population of racial and ethnic minorities received [emergency managers] when they had scores of 7. At the same time, none of the twelve communities (0%) with a majority white population received an EM despite having scores of 7 or higher."  




Thursday, April 21, 2016

Hidden Harbor Homeowner's Association President indicted | WTVC

Hidden Harbor Homeowner's Association President indicted | WTVC: "Detectives investigated an allegation that Markee, who was the President of the Hidden Harbor Home Owner's Association, had embezzled monies from the association. Detectives presented their findings to the Hamilton County Grand Jury who returned the indictment."



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As I keep saying, there needs to be more visibility and more oversight of condo and HOA financial activities.

KFOX14 Investigates: Residents continue battle with Oasis Ranch HOA | KFOX

KFOX14 Investigates: Residents continue battle with Oasis Ranch HOA | KFOX: "Some residents living in the Oasis Ranch neighborhood in east El Paso are continuing their protest against their Homeowner's Association board.

KFOX14Investigates reported last week some residents stopped paying their $20 monthly HOA fees, saying they're not getting the maintenance services they pay for.

Dana Properties, who manages the neighborhood, said the HOA can't do needed maintenance because they don't have the money since people have quit paying the fees."

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Not paying HOA assessments is always a risky tactic. You can find yourself facing a lien on your home that can be released only by paying the assessments plus thousands of dollars in attorney fees and penalties.

Family watches in horror as dog mauled to death in their own home - 680 NEWS

Family watches in horror as dog mauled to death in their own home - 680 NEWS: "Tuesday night his little Havanese named “April” was mauled to death on the floor of his condo by a neighbour’s pit bull that got loose in the hall and muscled its way through his front door...



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I have no idea why people want to own aggressive dogs.

Wednesday, April 20, 2016

Bloomfield neighborhood by-laws show outdated, racist language

http://www.wxyz.com/news/bloomfield-neighborhood-by-laws-show-ban-on-blacks?utm_content=bufferab45e&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

Here's another old HOA with a race restrictive covenant. These covenants are part of the hidden history of HOAs that nobody wants to remember. One of the main reasons HOAs started to spread in the years after WWI was the ability to ban anybody other than Caucasians from residential neighborhoods.

CAI TV Commercial on Vimeo

CAI TV Commercial on Vimeo:




Tuesday, April 19, 2016

Victoria homeowner horrified after tenant lists condo on AirBnB | CTV Vancouver Island News

Victoria homeowner horrified after tenant lists condo on AirBnB | CTV Vancouver Island News:



Cheeky of him.

CanLII - 2016 ONSC 2565 (CanLII)

CanLII - 2016 ONSC 2565 (CanLII): " This is an application for a declaration that the respondents have breached section 117 and 119 of The Condominium Act, 1998, SO 1998, Chapter 19 (the Act) by failing to permit the applicant to enter the respondent’s (Mr. Lu’s unit) to carry out repairs required as a result of flooding in the unit, and an order permitting the applicant to enter the unit as necessary to:

(a)         inspect the unit and common elements and determine the repairs required as a result of flooding in the unit, and;

(b)         to carry out the required repairs to the unit and common elements."



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Which it turns out the owner should not have done: " In the circumstances I find that the respondents should be responsible for costs in the amount of $12,000, payable immediately.