High court to hear dispute over homeowners association rules - Newsday.com
More press coverage of the upcoming Twin Rivers argument before the New Jersey Supreme Court on January 4. If the court rules that the New Jersey state constitution limits the activities of HOA boards, it will be one of the biggest events in common interest housing...ever.

Neighborhoodtimes: County admits fault in auction of condo
Oops. Make that double oops.

Pinellas county officials have conceded they were acting unlawfully when they neglected to contact more than 900 time-share owners of a Pass-a-Grille condominium before they auctioned it off in a tax deed sale in November, according to court documents...The county sent several notices to the condo board but did not receive a response.

Florida's overbuilt condo market starts to fizzle
Like I said, I am holding off on pronouncing the housing bust over.

Developers have pulled the plug on some of Miami's most anticipated condominium developments, a sign the city's sizzling, speculator-driven condo market -- where prices of many apartments doubled or tripled in a few brief years -- has finally chilled.

BREITBART.COM - Sales of New Homes Post Gain in November
That's a bit of good news, but after all the evidence of a slump in the housing market I'm holding off on believing that things have turned around.

New Jersey Real Estate Report » Free speech or HOA rules?
Here's a weblog post on the Twin Rivers case, which is scheduled to be argued before the New Jersey Supreme Court on January 4, 2007. Thanks' to Fred Pilot for the link.

And for those who want to keep track of the case, here's the info on the case from the court website:

A-118/122-05 Comm. For a Better Twin Rivers v. Twin Rivers Homeowners’ Assoc. et al. (59,230)
Do the State Constitution’s Speech and Assembly clauses apply to limit the authority of a homeowners’ association, and if so, under what circumstances?
Certification granted 4/28/06
Argued: Scheduled for 1/4/07
Decided:

'Mistake' costs family its home at The Springs - Orlando Sentinel :
Here is a heartwarming story of judicial compassion, link forwarded by Fred Pilot via the HOAs Yahoo group:

SANFORD -- Because of someone else's mistake, Sharon Rousey lost her Longwood home at a courthouse auction two weeks ago over $1,200 in unpaid homeowners association dues. On Wednesday, she tried to persuade a judge to give it back. He refused. That means Rousey, 48, a single mom who is raising two disabled teenagers on a fixed income, must now pack up her belongings and get out...Rousey bought the 2,400-square-foot town house in The Springs, a gated community near Wekiwa Springs State Park, in May 2005. The home, though, came with a surprise: She would belong to two homeowners associations and, thus, had to pay two sets of dues, one for The Springs and another for Glenwood Village, the town-house neighborhood. She fell behind on both, according to court records...In November, Rousey thought she had solved her problems: Goodbye Foreclosure Inc., a Winter Park company that buys distressed properties, agreed to buy her house before the auction. It would pay off her homeowners association dues as well as her mortgage and leave her with about $115,000 in cash. But company Vice President Aaron Herschberg sent a check to an association -- the wrong one, it turned out -- and assumed the auction would be called off. It wasn't. On Dec. 5, an Apopka company that buys foreclosed property agreed to pay $113,500. Mark Lippman, Rousey's attorney, estimated the market value of her town house at $275,000 to $300,000.

Birth of Jesus Christ
Just a reminder about the religious significance of Christmas. Merry Christmas, and enjoy the presents, family and friends, football games, egg nog, and whatever else makes the day special. I hope we can also spend a few moments pondering the significance of the birth of Jesus Christ over two thousand years ago.

What is it about Obama? - Los Angeles Times
Fred Pilot found this nugget.

Early this month, at the invitation of Rick Warren, Obama spoke to a hall full of conservative Christian evangelical activists gathered at Saddleback Church in Orange County. Warren, author of the bestseller "The Purpose Driven Life," is among the most successful and popular preachers in the world. Saddleback is his city on a hill, a sprawling campus set above the smooth, clean boulevards of the most suburban of places. His is the kind of congregation where Warren's joke about the authoritarian rule of suburban homeowners associations brings a knowing laugh.

Merry Bizaromas - Frederick Meekins
Nancy Levy sent this link to an essay that compares Christmas in an HOA to Bizarro world from the Superman comics, where everything is dysfunctional. That's an analogy I hadn't thought of before, but now that he mentions it...

HOMEOWNERS KEEP FILING – AND WINNING – STATE AND FEDERAL CIVIL RIGHTS LAWSUITS

The following was sent to me by Marjorie Murray of the Center for California Homeowner Association Law, which is where the link above will take you. This is a piece from their newsletter, which you can subscribe to by going to their web site and following the "Press Room/Newsletter" link on the left side of the page. I do not have any independent knowledge of the case described below, so if you have any inquiries direct them to Marjorie or the attorneys involved in the case.

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SACRAMENTO -- Working through Fair Housing agencies, legal aid groups and private attorneys, homeowners keep filing civil rights lawsuits against their associations – and winning.
In June, the estate of David Donnell settled with Snowshoe Springs Association (Calaveras County) for an undisclosed amount approved by the U.S. District Court Eastern District in Sacramento [Case # CIV S-01-1953 MCE KJM.].
Disabled by lifelong health problems, including epilepsy, Donnell sued Snowshoe in federal court after it tried to foreclose on his home in order to collect about $1200 in late assessments. [Sacramento Bee, Jan 14, 2001.] The board refused his offer – made publicly – to pay his debt in installments.
With the help of Sentinel Fair Housing, Donnell later petitioned the board formally under Fair Housing laws to be allowed to pay in installments. Still the board refused. The board later claimed foreclosure was the only way to force him to pay. The association had no foreclosure policy in place, when it tried to seize his cabin, built by his parents 40 years ago. The Donnell foreclosure would have been Snowshoe’s first.
The Bee article generated the pro bono services of Roseville attorney, Michael L. Johnson, who stopped the foreclosure. Donnell later sued the Association, several board members as individuals, one homeowner not on the board, association attorney, Curtis Sproul, and his law firm Genshlea Chediak & Sproul for trying to seize his home in a nonjudicial foreclosure. KGS Community Services, the debt collection firm hired by Snowshoe and owned by Sproul’s ex-wife, was not named in the suit.
A chief cause of action in the suit was that the defendants violated civil rights statutes by refusing to grant Donnell’s request to pay in installments and then moving to foreclose when it had no policy to foreclose. After the suit was filed, the SSA board adopted a foreclosure policy.
But before his case could come to trial, Donnell died from his disabilities in September 2005 in a Calaveras County hospital. Snowshoe attorneys moved quickly to get the case dismissed. However, Federal Judge Morrison England granted the petition of Donnell’s sisters to let the suit against Snowshoe forward on behalf of his estate.
On the eve of trial, Snowshoe settled out of court in a confidential agreement approved by Judge England. At Snowshoe’s annual meeting in July, property manager Mark Redding said, “The settlement didn’t cost us anything.” However, sources close to the case estimate that, in addition to the settlement money paid to Donnell’s estate, the insurance company alone paid an estimated $250,000 in legal fees to litigate the case. Whether the costs result is higher insurance premiums to Snowshoe – and higher assessments to homeowners -- is unclear. – end --

Taco Bell uses self-serving polls, too

About 1 in 3 frequent fast-food customers say they plan to eat less often at Taco Bell — or not at all — as a result of the chain's recent E. coli outbreak, according to a national poll done for USA TODAY...Taco Bell President Greg Creed declined in a phone interview to comment on Sandelman's findings. He said Taco Bell has been doing its own polling since the outbreak and that 94% of people who describe themselves as Taco Bell eaters have a "positive" view of the brand; 82% believe the food is "safe."
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What does this have to do with common interest housing? I am often asked about the significance of the Zogby and Gallup polls commissioned by the Community Associations Institute that report general satisfaction with HOAs. I think there are polls, and there are polls. If you work hard enough to get data supporting a particular position, and you ask the questions carefully enough, you can get the data you are looking for. But that isn't social science in my book.

I drove past the local Taco Bell at lunchtime, and there were four cars in the lot. What's my point? Commissioned polls be damned. Taco Bell customers have a choice and they are voting with their feet. It would nice if new home buyers weren't forced into HOAs and condos so we could see what they really want.

Ho, ho, ho.

Suzette Kelo's holiday greeting card to the City of New London
NEW LONDON, Conn. (AP) -- The woman at the center of a national battle over property rights has sent some not-so-joyous tidings to people involved in taking her house to make way for private development. Susette Kelo's holiday cards feature a snowy image of her pink house and a message that reads, in part, "Your houses, your homes, your family, your friends. May they live in misery that never ends. I curse you all. May you rot in hell. To each of you I send this spell." The cards were conceived and produced by a friend of Kelo's and sent to city officials and members of New London's development agency. Kelo said she also considered sending the cards to five U.S. Supreme Court justices who ruled in June 2005 that New London had the right to take homes in the Fort Trumbull neighborhood to make way for a riverfront project slated to include condominiums, a hotel and office space.

2005 Tar Heel of the Year - Self-Help's Martin Eakes
Here's a story about the man who started Self Help Credit Union, which in turn created the Center for Responsible Lending. And CRL did the study referenced below. Sounds like quite a fellow.

Report Reveals 2.2 Million Borrowers Face Foreclosure on Subprime Home Loans: Financial News - Yahoo! Finance

You can download the pdf of this report at the CRL website, linked in this snippet. It makes for some scary reading, especially when you look the tables. The West will be hit very hard if the data and analysis are correct, and my quick review of the study tells me it appears to be a solid piece of work.

A new Center for Responsible Lending (CRL) study reveals that 2.2 million American households will lose their homes and as much as $164 billion due to foreclosures in the subprime mortgage market. Titled, "Losing Ground: Foreclosures in the Subprime Market and Their Cost to Homeowners," the CRL study is the first comprehensive, nationwide review of millions of subprime mortgages originated from 1998 through the third quarter of 2006. CRL's research suggests that risky lending practices have triggered the worst foreclosure crisis in the modern mortgage market, projecting that one out of five (19.4%) subprime loans issued during 2005-2006 will fail...Trouble in the overall subprime market spells trouble for African American and Latino families across the country. Although white families receive more subprime loans overall, African Americans and Latinos receive a higher proportion of high-cost loans than any other group, a fact consistently verified annually by data lenders submit under the Home Mortgage Disclosure Act (HMDA). "Losing Ground" estimates that 8 to 10 percent of all African American and Latino families who received a home loan in 2005 will be affected by subprime foreclosures.

Suburban sprawl may create heavier kids - Yahoo! News

Using data from a national health survey, researchers found that teenagers living in sprawling suburbs were more than twice as likely to be overweight as teens in more compact urban areas. The findings echo those of a 2003 study by the same researchers that focused on U.S. adults. The researchers believe the same factors may be driving the link between suburban living and teenagers' weight -- the major one being reliance on cars. "In a sprawling suburb, you can do very little on foot," said lead study author Dr. Reid Ewing of the University of Maryland's National Center for Smart Growth Education and Research.


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Fred Pilot wants to create a new planned community where you have to walk to work and school. How to enforce it, I wonder? Maybe the CC&Rs?

Fighting for oversight - baltimoresun.com
Thanks to Fred Pilot for this:

Seeking to address complaints about abuses in Maryland's growing number of homeowners and condominium associations, a state task force is calling for greater local oversight of these quasi-governmental bodies, which essentially tax their residents to take care of swimming pools, playgrounds, trash pickup and other community services...But the panel balked at calling for greater state enforcement of existing condo and homeowners association laws, for making the laws uniform across housing types or for establishing a "bill of rights" for residents of such communities. "It's a start, but it falls way short of where advocates for residents wanted to go," said Alexander Hekimian, a task force member. The president of a townhouse association in Columbia, he said he has long advocated for greater accountability in associations, including the Columbia Association, which essentially governs a community of nearly 100,000 people in Howard County. Hekimian contended that the task force was stacked with association representatives and "passed the buck" on addressing abuses by leaving enforcement largely up to local governments. He had drafted a two-page "bill of rights" for residents similar to one backed nationally by AARP. But he said the task force was unwilling even to endorse the concept, much less his language.

Developers target niche home buyers | Chicago Tribune
If you look hard enough, you can find some comments by this McKenzie guy.

From American Homeowners Resource Center: JUDGE PUBLICLY ADMONISHED FOR COMMENTS
This is quite a story and I'd recommend reading the whole thing, but here's a sample:

James M. Brooks is a superior court judge in Santa Ana, Orange County, California. He started as a municipal court judge in 1987, and was moved to the superior court in 1998.On November 29, 2006, the Commission on Judicial Performance issued a Public Admonishment - one of the Commission's highest sanctions. In deciding to make the Admonishment public, the Commission noted that he had been disciplined for similar conduct before. This was in response to a complaint filed by Arnold McMahon against Brooks...In the other case, Palacio del Mar Homeowners Association v McMahon, the Commission found that Brooks made statements to the McMahons that were "sarcastic, demeaning and intimidating." Arnold McMahon was explaining to Brooks that he had not been able to attend a deposition because at 3.30a.m. in the morning, he experienced intense pressure in his chest. After his doctor discovered an abnormality in his EKG, the doctor sent him to hospital, where he was admitted to the cardiac unit with a suspected heart attack. Brook's response was: "Gee. I wonder what's going to happen when we put you in jail, Mr. McMahon. Your little ticker might stop, you think?" To Elizabeth McMahon, Brooks stated that if she did not show up for her deposition, "it will be [$]10,000 payable to the court. I'd mention jail but it might give her heart attack."

Just got back from the National League of Cities conference
Tracy Gordon of PPIC and I did a presentation on CIDs and cities, mderated by Kevin Frazell. It was fascinating to hear the audience questions, because they confirmed a number of things that I had said in my presentation. First, many people confirmed that cities are mandating CIDs in new housing. We heard this from delegates from several states. Second, many confirmed that as the developments age and need major fixes that they can't afford, the HOAs come to the cities for help that may not be forthcoming. Third, a number of attendees also confirmed that there are plenty of defunct CIDs around, where the BOD is nonexistent, no dues are being collected, and problems are being created for local government.

Tracy's work is really excellent, and you can get it from the PPIC website. She has the best data on California CIDs available, and she is a very even-handed and responsible researcher. She envisions HOAs and cities gradually working out a functional relationship. I tend to be more pessimistic, because there are so many problems with HOA finances and leadership, but I think she has a point. It is important to keep in mind that in the long run most of the time people find a way to muddle through. But on the other hand, remember the Savings and Loan industry?

MercuryNews.com | 12/10/2006 | Droves say goodbye to Golden State
Fred Pilot sent this along. I was in San Francisco a few weeks ago. I saw nothing but yuppies, homeless people, tourists, and dogs (the residents of San Francisco have an average of 6.3 dogs, if my sampling is accurate). There are no kids in the city, except the ones the tourists bring. It costs a bazillion dollars to rent or buy anything you can live in. And now, forget about San Francisco--it costs a fortune to live even in San Bernardino. So for the first time in memory, people are getting out of California.

Between 2004 and 2005, the migration flow into California from the other 49 states started flowing the other way. Data from the state Department of Finance shows that, for the first time this decade, more people left California in 2005 for another state than the number who moved in. Mary Heim, a finance department demographer, says this particular kind of outflow will continue for the foreseeable future. Unlike the tens of thousands who left Silicon Valley following the tech bust earlier this decade, the new migration is about the quest for something besides a job: a better quality of life at a lower cost of living.